Ann Budge

[Mikey1874]

Aligns perfectly to my understanding of the scenario, provides short term stability, and a mechanism for the fans to take long term control in a controlled fashion where we can take the correct amount of time to set up the correct governance structure and find the correct people to run the club..

 

Always my understanding too with money needed to stabilise and put in place firm foundations - I'm entirely comfortable with what has been said tonight. Sure it will be clear soon and suspect Romanov has left us weak and needing to sort out many aspects of club and so spend some money to do this. Business plan will be in place. I'm sure it will all be explained.

[Francis Albert]

If this is about funding a quick return to the top tier it is a risky approach. Sevco can buy their way back (maybe) but ?1.4m a year won't guarantee anything. We would

already be overwhelmingly better off than our competitors save Sevco, so an extra ?1.4m will just increase the chances marginally. The downside risk is that we have

to maintain pledges for 5 years not 2. If the gamble doesn't work, I can see sustaining DDs being a bit of a stretch if we are still struggling on the pitch in years 4 and 5. If the ?1.4m a year is just to stash away for a rainy day, or for "infrastructure" investment then that would be different and would more

directly provide "financial stability". We don't know do we?

Edited February 13, 2014 by Francis Albert

[JamboGraham]

Cash is king, and lack of cash is what could ultimately kill our club.

 

This deal purchases the shares and assets of the club (something that the fans are not currently in a position to do).

 

It provides the club with a guaranteed minimum level of working capital for three years.

 

It provides a binding agreement and firm timescale to fan ownership.

 

Personally I do not care if my direct debit is used for investment capital or working capital. The bottom line is that the club need both to survive.

[Robbo-Jambo]

 

So we now have someone who comes on board to save the club.

 

Someone with an excellent business record who will become chief executive so has even more of a hands on role

 

Someone who has realised if we are relegated then we will need working capital/income to survive and prosper in an attempt to come back up and has allowed 2 years at least for this to happen.

 

Someone who is deferring repayment of a loan to aid the clubs recovery.

 

Someone who is being upfront, honest and engaging with the fans as much as they can at present.

 

Someone who if fans keep their side of the deal will be legally bound to hand over control to FOH when the loan is repaid...........(and did anyone really think Bidco would not control the club until debt had been repaid)

 

To me seems a fair enough deal (of course some will want a diff order of events such as purchase first but you cannot run the club without capital and we will need that in the early years to stabilise then get us promoted.)

 

Good post.

 

[Don Dan]

Won't it be nice to finish the financial season in the black instead of always chasing our tails.

[Coco]

If this is about funding a quick return to the top tier it is a risky approach. Sevco can buy their way back (maybe) but ?1.4m a year won't guarantee anything. We would

already be overwhelmingly better off than our competitors save Sevco, so an extra ?1.4m will just increase the chances marginally. The downside risk is that we have

to maintain pledges for 5 years not 2. If the gamble doesn't work, I can see sustaining DDs being a bit of a stretch if we are still struggling on the pitch in years 4 and 5. If the ?1.4m is just to stash away for a rainy day, then that would be different and would more directly provide "financial stability". We don't know do we?

 

It is also conceivable that working capital would be required for cash timing issues. Yet FoH/new owners are likely to have a pot of cash with season ticket sales immediately. And it should be expected that the financial timing could be adjusted anyway by year 2. So this is unlikely to be the reason.

 

Nor would I tend to describe rainy day money as working capital.

 

With regard to the 'speculate to accumulate' issue - if an extra ?1.4m pa is required to get the club back into the top league - what happens when the club's income rises somewhat in the top league - yet the player wages required to stay in the top league also rise? Postpone paying back the purchase price of the club?

 

As said, hopefully this can all be cleared up. Today's statement is a great help in understanding what is going on. Hopefully the spirit of openness will continue.

[Geoff Kilpatrick]

Won't it be nice to finish the financial season in the black instead of always chasing our tails.

The vermin order open top buses for that kind of thing.

[Don Dan]

 

 

 

I wonder if this tweet is a precursor to a more important imminent press release?

 

 

 

 

Ahem. BBCBMcLauchlin ?@BBCBMcLauchlin 5m

Edinburgh based business woman Ann Budge is financing the proposed takeover of Hearts. Budge is the sole director of BIDCO 1874 #bbcsportscot

 

 

 

I wonder if this tweet is a precursor to a more important imminent press release?

 

 

And it was.

[JC]

Personally, they could spend the cash on a statue of Vladimir and Ann doing a waltz that plays "Hey Jude" and spins like a jewellery box every time we score, outside the mainstand as long as the club is in the best position it can be.

 

I want this to happen and will happily increase my donation to make it happen. What tune will it play?

[Footballfirst]

FF.

 

From what I understand there is so much required off the pitch to get us looking like a club that deserves the name Heart of Midlothian. Admin, scouting, coaching, maintenance etc.... and you know more than most on here that our youth development needs an overhaul from top to bottom.

 

I don't believe it will take 6 years but they can take 10 as long as they do it right.

 

Keep the faith FF.

 

I get very uncomfortable when fans start talking about where a club deserves to be. It smacks of the WATP mentality down Govan way.

 

We are currently exactly where we deserve to be. We have been a financial basket case since the late 1990s.

 

Like you I want the club I support to be at the top level of the game and competing for trophies on a regular basis. However, there is a price to be paid, and earned, to get there. All clubs need to generate income wherever they can, whether that is through ticket sales, success on the park merchandising, sponsorship etc.

 

I happen to think that the price of football (ticket income), and the resultant player wages (expenses) are excessive for the quality of play we see week after week, without adding to the cost through a subscription scheme.

 

I bought into the stated aims of FOH as above, and I would probably buy into a future plan aimed specifically at the Academy.

 

I possibly differ from most people on JKB, in that I don't feel that I have an unbreakable emotional bond with the club. If the club ended up playing at lower levels, or worse still went out of business, I would be saddened by it, but life would go on and I'd find something else to entertain me on Saturday afternoons.

[jamboinglasgow]

So should I be pleased with this? I thought at first reading this a really positive step. Its a clear plan and sets out what will happen, something FoH were really poor at doing early on. But I do agree with others, for the plan to succeed it requires pledges to keep going and a current level, which I think in its current form is unrealistic. So what should this be, a positive step in Hearts future but one that still requires more planning and realism?

[Le Chat]

 

Personally I do not care if my direct debit is used for investment capital or working capital. The bottom line is that the club need both to survive.

 

[CJGJ]

I hope Ann likes hats............................

 

 

Time to go out by a nice tin one for the flak officially starts now (as we can see from some posters) even before you have control under Bidco

[Rudy T]

The way I'm reading this is our immediate needs require 1.4m additional income. Seems fair to me when you consider where we are right now. We have a threadbare squad which needs investment, a management team that requires replaced, a new scouting system, new investment in our youth set up, stadium repairs, new back office staff, marketing people and football debts to be repaid.

 

This is all to the benefit of the long term health of the club, Ann Budge is quite rightly sitting at the head of the table to oversee this using her business skills, which are very good, I've witnessed them first hand.

 

Should season ticket sales generate higher revenue then expected, we sell players, cup runs, merchandise sales and corporate sales are strong this capital amount will change and foh pledges will pay the loan back and we'll be in a very strong position to be a force in the spl again. Surely this is what all the fans want?

[Craigieboy]

Folk seem to be flapping about nothing.

[Maroon Sailor]

FF this can be the start of us not being a financial basket case.

 

Have to take issue on where a club deserves to be as well.

 

The 3rd best supported club in Scotland deserves to sit at the top table imo.

 

 

[Footballfirst]

BDO have managed to operate the club on a break even basis for the past 8 months on one third of the season ticket money, while paying all bills as they fall due.

 

They also estimated that the club could operate at a small profit of around ?400,000 per annum in their pitch to potential buyers of the club.

 

Now if BDO are as good as their word, and I've no reason to doubt them, I don't know where the need for ?2.8M extra working capital comes from.

[Footballfirst]

FF this can be the start of us not being a financial basket case.

 

Have to take issue on where a club deserves to be as well.

 

The 3rd best supported club in Scotland deserves to sit at the top table imo.

 

Don't get me wrong, the plan looks fine and it it all goes to "plan" the club will be in a good place. However it is not the plan I thought I was buying into.

 

The 3rd best supported club, should be sitting at the top table imo, too, but not because it deserves to be there. It still needs to earn its place there, through good scouting, coaching and play, which should be entirely possible with the income at its disposal.

[kylelauren01]

BDO have managed to operate the club on a break even basis for the past 8 months on one third of the season ticket money, while paying all bills as they fall due.

 

They also estimated that the club could operate at a small profit of around ?400,000 per annum in their pitch to potential buyers of the club.

 

Now if BDO are as good as their word, and I've no reason to doubt them, I don't know where the need for ?2.8M extra working capital comes from.

a very, very good case for making an offer to Bryan Jackson or James Stephen from BID to take a seat at the top table along with Ian Murray.

[JamboGraham]

All of our current thinking is based on top league season ticket prices, broadcasting revenue and commercial income. I have no idea what level this will fall to in the 2nd tier.

 

I am quite satisfied that we are able to protect our working capital levels via the FOH model.

[kylelauren01]

We need the very best people possible on the board. Good financial acumen is a must but so is someone with a sense of reality who can detach themselves from the raw emotion of being a fan of a club. Hopefully the Edinburgh business community will buy in as well this time. We have a fantastic chance to create something long term and sustainable - hopefully the chance will he grasped

[Rudolf]

 

 

 

Seems to me the extra working capital is to make sure we get promoted at the first or at worst (what with Rangers) second time of asking, as well as things like repairs, paying football debts, rearranging the backroom staff and absorbing the reduction in revenue in the Championship while rebuilding an SPL level team from day one.

 

Shows vision and a clear plan IMO, and suggests we'll be self-sustaining with a team worthy of challenging in the SPL by 2016-17 at the absolute latest. They're probably hopeful it happens before that, but if it takes any longer we're always going to be mildly messed, working capital or not.

 

That's my take on it. I'm sure I read somewhere that FOH has budgeted for two years in the Championship. So with reduced income for that time it makes sense. I would imagine if we get up first time then it could be less than five years. Need to remember that we're unlikely to have any credit facilities from the bank so need to make sure cash flow is secure given our likely punishment if we're late paying wages etc. anyway, happy to pay for life which was what I thought it was all about.

[Don Dan]

 

 

 

Don't get me wrong, the plan looks fine and it it all goes to "plan" the club will be in a good place. However it is not the plan I thought I was buying into.

 

The 3rd best supported club, should be sitting at the top table imo, too, but not because it deserves to be there. It still needs to earn its place there, through good scouting, coaching and play, which should be entirely possible with the income at its disposal.

 

So far all we have seen is big numbers but what we don't know is how these figures are arrived at. These numbers will have been arrived at I would imagine via consultation and an idea of who they have in mind to take this club forward. These plans may well come to our notice in due course.

[stan]

Yes FF, BDO have managed to make do and mend on a very small income, but look where we are on a competitive basis. We're down to the bare bones on a meagre budget. People are there on reduced wages and some others effectively giving their time and labour in charity. Costs will rise when we start operating normally, and we'll need a proper cash flow (1st time in years!) for stability.

 

Pretty much everyone accepts that speculate to accumulate is not the policy we will see again, thankfully.

[pablo]

I think we need to spend some money on housekeeping. The Fighting Fund have done well on a smaller scale but the stadium is showing signs of wear and tear. Industrial cleaning and painting etc. Money up at Ricarton probably too. You've got to invest in your equipment, your plant so to speak. I'd be surprised if we hadn't neglected to do this for years.

[The Gasman]

I think it is incredible that there is someone who is willing to step up and fund this takeover. It is also incredible that the fans have stepped up in such numbers to do their part. Great credit to all concerned.

 

However, unless there is a pressing reason why a working capital injection is required - remembering that BDO are attempting to leave the new owners with season ticket money - it is very surprising that the club will not be able to live within its means, particularly given the apparent cost of the current squad (and that several are out of contract anyway). If it is about funding for players in order to obtain an immediate return to the top league it could be construed as just another version of speculation for accumulation.

 

Hopefully FoH will clear this up.

 

Good post.

[Footballfirst]

I think we need to spend some money on housekeeping. The Fighting Fund have done well on a smaller scale but the stadium is showing signs of wear and tear. Industrial cleaning and painting etc. Money up at Ricarton probably too. You've got to invest in your equipment, your plant so to speak. I'd be surprised if we hadn't neglected to do this for years.

 

We shouldn't need to spend a penny on the physical infrastructure at Riccarton as the University owns the facilities. There is also a ?30M Scottish Government scheme to deliver a top class sports centre which is due to start in the Spring and is expected to be operational in 2016, just two years away..

[Watt-Zeefuik]

I get very uncomfortable when fans start talking about where a club deserves to be. It smacks of the WATP mentality down Govan way.

 

We are currently exactly where we deserve to be. We have been a financial basket case since the late 1990s.

 

Like you I want the club I support to be at the top level of the game and competing for trophies on a regular basis. However, there is a price to be paid, and earned, to get there. All clubs need to generate income wherever they can, whether that is through ticket sales, success on the park merchandising, sponsorship etc.

 

I happen to think that the price of football (ticket income), and the resultant player wages (expenses) are excessive for the quality of play we see week after week, without adding to the cost through a subscription scheme.

 

I bought into the stated aims of FOH as above, and I would probably buy into a future plan aimed specifically at the Academy.

 

I possibly differ from most people on JKB, in that I don't feel that I have an unbreakable emotional bond with the club. If the club ended up playing at lower levels, or worse still went out of business, I would be saddened by it, but life would go on and I'd find something else to entertain me on Saturday afternoons.

 

FF, I think your stance on being in until the club is paid for, and taking a wait-and-see mentality after that is reasonable. I guess I have the following questions, and these are meant as honest questions, not traps (responses from others most welcome too):

 

1) Let's suppose that after 5 years FoH had 10k pledgers and had fulfilled the ?6m ask and the club had done well enough financially to develop a small but positive cash reserve fund. Now let's suppose that FoH floated a scheme to massively renovate the main stand to bring the capacity up to 10k seats, but it required another 5 years of pledges totalling ?7.5m. Let's also suppose for the moment that it was an attractive design, the financing was well thought out, and regulatory approval was not a problem. Would you support this?

 

2) Now, let's suppose that 10 years from now the new stand is built and Tynecastle's capacity is up to 24k and Hearts are averaging 18k a game in attendance, have 15k season ticket holders, and are selling out matches with the OF, Hibs, and the better clubs at the time. The club has won a LC in that span, made the Europa group stages once, and is consistently finishing 3rd or 4th and has come close to the OF in points a couple of times, but has yet to finish above them. The above ?7.5m was paid off early, and again, the club's finances are sound and in good shape with a small cash reserve fund and no significant debt. However, because of restrictions on the wage bill, the club has to sell off its better players and can't develop a squad that can quite get past them. FoH launch one more proposal, its most audacious yet, to raise ?12m over five years targeted specifically to supplement the quality of player on the field and try to make a run at a league title and a Champion's League place. Would you support this?

 

Again, I'm not trying to lay some trap of, "yur no a real hertz fan" if you don't, I'm trying to get a sense of what a thoughtful but skeptical supporter like yourself sees as worthwhile in terms of pledges. Personally, I see FoH as a vehicle for us fans to support the kind of team investment we've asked wealthy owners to support in the past, not just a means to getting us back to being a decent top-six club who gets a Europa place every five years or so. In short, while I don't think we'll ever supplant the OF, I want to worry them constantly, and I want to not just make the Europa league on a regular basis but to thrive in it. I want to know how many others would support this.

[CJGJ]

Don't get me wrong, the plan looks fine and it it all goes to "plan" the club will be in a good place. However it is not the plan I thought I was buying into.

 

The 3rd best supported club, should be sitting at the top table imo, too, but not because it deserves to be there. It still needs to earn its place there, through good scouting, coaching and play, which should be entirely possible with the income at its disposal.

So you were willing to invest for 3 years but have doubts about 5 though it could be 4 if we increase pledges or were successful in that period.

 

The only thing I can see that is causing you concern is the fact that the next 2 years pledges from this summer are going to working capital rather than the club purchase.

Now anyone and I mean anyone would know a business needs working capital to exist and function with any hope of success so given we will not be able to borrow the money or receive a loan using normal practices then it has to be self generated and that means either using the funds to invest in the club or borrowing more from Bidco (taking longer to pay back)......which in essence are exactly the same.

 

It was already known FOH would not have full control until Bidco were paid back so no change there either and they will have representation on the new board from day one (more or less).

 

The only other point that I can see is that you believe that the club can be successful without the working capital using only season ticket money and other income sources..........perhaps but it is a gamble no matter which route you take and your thoughts are no more valid than the proposals........the extra income will give us a better chance of success but not a guarantee.

 

The club has issues behind what we see on the park and is in need of funding especially in the youth structure and marketing side.......normal income will not allow us to move quickly to resolve these matters and whilst I understand your position I think you are perhaps looking on the bright side of what could happen without a plan B if we do not succeed.

Whatever proposal is followed there are no g'tees and as you say we have to earn our way back to the upper reaches of the Scotish Premiership.

[Lord Beni of Gorgie]

 

 

 

The short answer to your question is an emphatic "No". Ask Dermot Desmond, David Murray, Charles Green, Craig Whyte, Stuart Milne, Michael Johnston, Gavin Masterton etc how much of their own money did they invest in "their" clubs, or was it just borrowed from someone else.

 

FOH (us) won't own the club for 5 years.

 

The 3-6 pints you refer to is a premium of 33%-67% on the current price of an ST in the main stand.

 

 

 

 

I've no intention of getting into a debate about taking the "huff" or not loving the club enough.

 

Seems political to me. Surely you must realise there has to be some cash injection. Sorry but I respect Ann Budges business sense over KB posts

[Jingle Bells]

BDO have managed to operate the club on a break even basis for the past 8 months on one third of the season ticket money, while paying all bills as they fall due.

 

They also estimated that the club could operate at a small profit of around ?400,000 per annum in their pitch to potential buyers of the club.

 

Now if BDO are as good as their word, and I've no reason to doubt them, I don't know where the need for ?2.8M extra working capital comes from.

 

Taken from FOHtwitter (sorry had abit of problem with copy & pasting all the statementl over)...part of.

 

"This period could be accelerated or extended, depending upon the level of continued support from the fans. While this is a large figure, it is also important to understand that the current levels of

contribution are sufficient to see this through. With additional supporter backing, these objectives will

be realised even more quickly."

The time scales to reach fan ownership would therefore seem to be quite flexible and probably currently based as outlined on a worse case senario ie relegation.

Whilst I'm on, many thanks to Mrs Budge.

[pablo]

 

 

We shouldn't need to spend a penny on the physical infrastructure at Riccarton as the University owns the facilities. There is also a ?30M Scottish Government scheme to deliver a top class sports centre which is due to start in the Spring and is expected to be operational in 2016, just two years away..

 

Okay, don't you agree that Tynecastle could do with a bit of a renovation? How many years could you go without spending anything significant on it before it becomes a problem?

[Lord Beni of Gorgie]

 

 

 

FF, I think your stance on being in until the club is paid for, and taking a wait-and-see mentality after that is reasonable. I guess I have the following questions, and these are meant as honest questions, not traps (responses from others most welcome too):

 

1) Let's suppose that after 5 years FoH had 10k pledgers and had fulfilled the ?6m ask and the club had done well enough financially to develop a small but positive cash reserve fund. Now let's suppose that FoH floated a scheme to massively renovate the main stand to bring the capacity up to 10k seats, but it required another 5 years of pledges totalling ?7.5m. Let's also suppose for the moment that it was an attractive design, the financing was well thought out, and regulatory approval was not a problem. Would you support this?

 

2) Now, let's suppose that 10 years from now the new stand is built and Tynecastle's capacity is up to 24k and Hearts are averaging 18k a game in attendance, have 15k season ticket holders, and are selling out matches with the OF, Hibs, and the better clubs at the time. The club has won a LC in that span, made the Europa group stages once, and is consistently finishing 3rd or 4th and has come close to the OF in points a couple of times, but has yet to finish above them. The above ?7.5m was paid off early, and again, the club's finances are sound and in good shape with a small cash reserve fund and no significant debt. However, because of restrictions on the wage bill, the club has to sell off its better players and can't develop a squad that can quite get past them. FoH launch one more proposal, its most audacious yet, to raise ?12m over five years targeted specifically to supplement the quality of player on the field and try to make a run at a league title and a Champion's League place. Would you support this?

 

Again, I'm not trying to lay some trap of, "yur no a real hertz fan" if you don't, I'm trying to get a sense of what a thoughtful but skeptical supporter like yourself sees as worthwhile in terms of pledges. Personally, I see FoH as a vehicle for us fans to support the kind of team investment we've asked wealthy owners to support in the past, not just a means to getting us back to being a decent top-six club who gets a Europa place every five years or so. In short, while I don't think we'll ever supplant the OF, I want to worry them constantly, and I want to not just make the Europa league on a regular basis but to thrive in it. I want to know how many others would support this.

I would say FF is being defeatist whilst you are being perhaps a tad optimistic. I suspect Hearts would be doomed living off FOH money only. I'm no finance expert, but I do know there has to be some element of risk.

 

If we don't come back crowds would dwindle and you would lose more in the long run, possibly fatally next time, .particularly playing in the lower divisions out of the public eye

[Footballfirst]

FF, I think your stance on being in until the club is paid for, and taking a wait-and-see mentality after that is reasonable. I guess I have the following questions, and these are meant as honest questions, not traps (responses from others most welcome too):

 

1) Let's suppose that after 5 years FoH had 10k pledgers and had fulfilled the ?6m ask and the club had done well enough financially to develop a small but positive cash reserve fund. Now let's suppose that FoH floated a scheme to massively renovate the main stand to bring the capacity up to 10k seats, but it required another 5 years of pledges totalling ?7.5m. Let's also suppose for the moment that it was an attractive design, the financing was well thought out, and regulatory approval was not a problem. Would you support this?

 

2) Now, let's suppose that 10 years from now the new stand is built and Tynecastle's capacity is up to 24k and Hearts are averaging 18k a game in attendance, have 15k season ticket holders, and are selling out matches with the OF, Hibs, and the better clubs at the time. The club has won a LC in that span, made the Europa group stages once, and is consistently finishing 3rd or 4th and has come close to the OF in points a couple of times, but has yet to finish above them. The above ?7.5m was paid off early, and again, the club's finances are sound and in good shape with a small cash reserve fund and no significant debt. However, because of restrictions on the wage bill, the club has to sell off its better players and can't develop a squad that can quite get past them. FoH launch one more proposal, its most audacious yet, to raise ?12m over five years targeted specifically to supplement the quality of player on the field and try to make a run at a league title and a Champion's League place. Would you support this?

 

Again, I'm not trying to lay some trap of, "yur no a real hertz fan" if you don't, I'm trying to get a sense of what a thoughtful but skeptical supporter like yourself sees as worthwhile in terms of pledges. Personally, I see FoH as a vehicle for us fans to support the kind of team investment we've asked wealthy owners to support in the past, not just a means to getting us back to being a decent top-six club who gets a Europa place every five years or so. In short, while I don't think we'll ever supplant the OF, I want to worry them constantly, and I want to not just make the Europa league on a regular basis but to thrive in it. I want to know how many others would support this.

 

Fair questions, and it all comes down to how much and how many fans are willing to buy into the various schemes.

 

Re 1)

I see replacement of the main stand as I priority but I'm struck by the fact that FOH have only stated that they want to remain at Tynecastle for the "foreseeable future". That would suggest to me that their longer term plans may be to build a new stadium, if, for example, costs or planning restrictions made staying at Tynecastle an expensive option.

With regard to funding I'd rather that the new stand was funded through a long term mortgage and paid for out of turnover. I'd have no objections to part of the funding being done as a 500 club or similar with some reward to the contributors.

The main drawback of asking the pledgers to fund a new stand is that most probably sit in the Wheatfield or Gorgie stands, and depending on how the new stand was configured for family areas, hospitality or priced for games, may not find that they would use it.

 

2) I'm afraid I see that as too much of a "speculate to accumulate" option.

 

What you are contemplating is a membership scheme costing ?120 a year upwards, with the single benefit of being able to elect a board that will elect the club board, but with some hope of growing the club. I don't think that is a sustainable model. For a club the size of Hearts, such a membership scheme should cost no more than ?50 a year and offer benefits in loyalty points, discounts for merchandise, tickets, weekly/monthly draws for hospitality etc.

[gowestjambo]

Fair questions, and it all comes down to how much and how many fans are willing to buy into the various schemes.

 

Re 1)

I see replacement of the main stand as I priority but I'm struck by the fact that FOH have only stated that they want to remain at Tynecastle for the "foreseeable future". That would suggest to me that their longer term plans may be to build a new stadium, if, for example, costs or planning restrictions made staying at Tynecastle an expensive option.

With regard to funding I'd rather that the new stand was funded through a long term mortgage and paid for out of turnover. I'd have no objections to part of the funding being done as a 500 club or similar with some reward to the contributors.

The main drawback of asking the pledgers to fund a new stand is that most probably sit in the Wheatfield or Gorgie stands, and depending on how the new stand was configured for family areas, hospitality or priced for games, may not find that they would use it.

 

2) I'm afraid I see that as too much of a "speculate to accumulate" option.

 

What you are contemplating is a membership scheme costing ?120 a year upwards, with the single benefit of being able to elect a board that will elect the club board, but with some hope of growing the club. I don't think that is a sustainable model. For a club the size of Hearts, such a membership scheme should cost no more than ?50 a year and offer benefits in loyalty points, discounts for merchandise, tickets, weekly/monthly draws for hospitality etc.

 

I find it quite inconceivable that having come this far - we find attitudes like this!

[Footballfirst]

So you were willing to invest for 3 years but have doubts about 5 though it could be 4 if we increase pledges or were successful in that period.

 

The only thing I can see that is causing you concern is the fact that the next 2 years pledges from this summer are going to working capital rather than the club purchase.

Now anyone and I mean anyone would know a business needs working capital to exist and function with any hope of success so given we will not be able to borrow the money or receive a loan using normal practices then it has to be self generated and that means either using the funds to invest in the club or borrowing more from Bidco (taking longer to pay back)......which in essence are exactly the same.

 

 

Given the numbers given out today we will have contributed ?1M by the completion of the deal (April?). In the following three years we will have contributed a further ?4.2M from pledges, giving a total of ?5.2M raised.

 

The CVA cost was ?2.5M and the football creditors, after a bit of negotiation, another ?500K, for a total of ?3M

 

That gives us ?2.2M to fund immediate working capital requirements of ?1M, leaving an extra ?1.2M over three years to supplement ST and other income.

 

That was my expectation.

[Hungry hippo]

So should I be pleased with this? I thought at first reading this a really positive step. Its a clear plan and sets out what will happen, something FoH were really poor at doing early on. But I do agree with others, for the plan to succeed it requires pledges to keep going and a current level, which I think in its current form is unrealistic. So what should this be, a positive step in Hearts future but one that still requires more planning and realism?

 

IMO the proposal today has been designed in a way to encourage membership retention by avoiding fans thinking the job is done as opposed to it actually being a necessity to retain existing pledge levels.

 

The biggest problem anyone has identified so far is that it raises too much cash in the short term. If that's the biggest problem then I'm in.

 

I really like the way it's structured and can't believe we are this close to making it happen. I'm also in absolutely no rush for Bidco to step aside.

[Lord Beni of Gorgie]

 

 

 

I find it quite inconceivable that having come this far - we find attitudes like this!

I have bags of respect for FF but I am somewhat bewildered. Surely we can trust this lady?

[tynie chris]

I don't know the answer but as it is from a H1b5 fan it must be true!

Load of shite, heard her daughter is a big Jambo, and that's one of the reasons for the funding.

[gowestjambo]

I have bags of respect for FF but I am somewhat bewildered. Surely we can trust this lady?

 

You can bet your bottom dollar you can trust her. I have met Ann and initially she was not prepared to get involved.

 

The brutal fact is without her, because no one else was prepared to stump up the cash - our team would have joined the likes of Third Lanark!

[Footballfirst]

I have bags of respect for FF but I am somewhat bewildered. Surely we can trust this lady?

 

I trust Ann Budge 100% and a drinking buddy of mine has known her personally for years.

 

I just think the plan does not deliver what I bought into. The plan is a perfectly reasonable one but there is an assumption that everyone, whose primary interest was only to save the club, is now being asked to contribute to the running of the club for a further two years, and are willing to do so.

Edited February 13, 2014 by Footballfirst

[Watt-Zeefuik]

Fair questions, and it all comes down to how much and how many fans are willing to buy into the various schemes.

 

Re 1)

I see replacement of the main stand as I priority but I'm struck by the fact that FOH have only stated that they want to remain at Tynecastle for the "foreseeable future". That would suggest to me that their longer term plans may be to build a new stadium, if, for example, costs or planning restrictions made staying at Tynecastle an expensive option.

With regard to funding I'd rather that the new stand was funded through a long term mortgage and paid for out of turnover. I'd have no objections to part of the funding being done as a 500 club or similar with some reward to the contributors.

The main drawback of asking the pledgers to fund a new stand is that most probably sit in the Wheatfield or Gorgie stands, and depending on how the new stand was configured for family areas, hospitality or priced for games, may not find that they would use it.

 

2) I'm afraid I see that as too much of a "speculate to accumulate" option.

 

What you are contemplating is a membership scheme costing ?120 a year upwards, with the single benefit of being able to elect a board that will elect the club board, but with some hope of growing the club. I don't think that is a sustainable model. For a club the size of Hearts, such a membership scheme should cost no more than ?50 a year and offer benefits in loyalty points, discounts for merchandise, tickets, weekly/monthly draws for hospitality etc.

 

Thanks for your reply. I believe somewhere, either here or on an FoH Q&A session, the idea of a lifetime cap of sorts on pledges was discussed, say after total amount given reached ?1000. Speculating past that, a ?50 annual fee seems reasonable, and there would be some new cash coming into the club over time as fans signed their children up and new fans joined the club.

 

As to whether or not I'm being too optimistic, I guess it comes down to this: do we resign ourselves to the fact that the OF will rule Scottish football for the rest of time with no interruption? That no other team will ever win a league trophy? Because if you allow for any break in that continued dominance, Hearts seem like the top candidate to me to break that choke-hold. As to Europa group stage places, every year I look at who makes that league, and usually we're a bigger club than 20-30% of the teams. We've just had rotten luck in our draws to get there in our most recent trips.

[gowestjambo]

I trust Ann Budge 100% and a drinking buddy of mine has known her personally for years.

 

I just think the plan does not deliver what I bought into. The plan is a perfectly reasonable one but there is an assumption that everyone, whose primary interest was only to save the club, is now being asked to contribute to the running of the club for a further two years, and are willing to do so.

 

Interesting take on matters, for one - and many I know this was always for the long term.

 

The idea to own our club, and ensure ownership for the future for the fans - is certainly worth a fish supper a week.............

[Francis Albert]

 

 

 

I find it quite inconceivable that having come this far - we find attitudes like this!

Instead of complaining about "attitudes" why not address the points made?

[J.T.F.Robertson]

Load of shite, heard her daughter is a big Jambo, and that's one of the reasons for the funding.

 

Her daughter is a big Hearts' fan and I'd guess it's because of her, Ann became one. As far as I can remember, years ago, Ann had no interest in football.

The daughter's love of Hearts came from her dad (Anne's ex-husband and my cousin) who would take her along to Tynecastle when she was a kid.

[Don Dan]

 

 

 

I trust Ann Budge 100% and a drinking buddy of mine knows her well.

 

I just think the plan does not deliver what I bought into. The plan is a perfectly reasonable one but there is an assumption that everyone, whose primary interest was only to save the club, is now being asked to contribute to the running of the club for a further two years, and are willing to do so.

 

But is this not running the club? To me all this is part and partial of us buying a club that is sound. Remember there are very few models we can base this purchase on, this is a pioneering move to bring Hearts safely under fan control. Over the next 5-6 years the foundations of a solid financial club will be laid and ownership will be transferred to us where we should then be able to run the club in the way you expect but until then AB has a model and a plan to implement to achieve your expectations.

[Rudy T]

 

 

 

Her daughter is a big Hearts' fan and I'd guess it's because of her, Ann became one. As far as I can remember, years ago, Ann had no interest in football.

The daughter's love of Hearts came from her dad (Anne's ex-husband and my cousin) who would take her along to Tynecastle when she was a kid.

 

Is your cousin Bert?

[Victorian]

It all looks perfectly acceptable as far as I'm concerned. The first couple of years post-purchase of the club was always going to be the most precarious time for the club. Exasperated by the fact that we're going to take a financial hit by being out of the top division for a while. Injecting cash into the club now as a safeguard against severe cash flow issues in the short term is well worth doing in exchange for effectively postponing the eventual transition to supporter ownership. It seems like an expedient trade-off to perform.

 

The outline plans as stated do not confirm the existence of a 'speculate to accumulate' climate but it could well be the case to some extent. It may well be the right course of action to some degree because the club must not be allowed to enter a longer term decline that would become very difficult to reverse. Spending 3+ years out of the top division could lead to dwindling attendances and effect a vicious circle of decline. Back in the Premiership is where we require to be.

[John S]

So we now have someone who comes on board to save the club.

 

Someone with an excellent business record who will become chief executive so has even more of a hands on role

 

Someone who has realised if we are relegated then we will need working capital/income to survive and prosper in an attempt to come back up and has allowed 2 years at least for this to happen.

 

Someone who is deferring repayment of a loan to aid the clubs recovery.

 

Someone who is being upfront, honest and engaging with the fans as much as they can at present.

 

Someone who if fans keep their side of the deal will be legally bound to hand over control to FOH when the loan is repaid...........(and did anyone really think Bidco would not control the club until debt had been repaid)

 

To me seems a fair enough deal (of course some will want a diff order of events such as purchase first but you cannot run the club without capital and we will need that in the early years to stabilise then get us promoted.)

 

Thank God for Ann Budge.

[Jambos_1874]

I can't see anything but positives in the statement released today. As other's have said, it appears to be well thought out, sensible and achievable. Hearts have desperately needed sensible, sound financial management for a long time now and this proposal is exactly that.

 

One thing that bothers me a little is that, after all, Ann Budge seems to be the only Hearts fan who was prepared to front the cash to purchase the club. I thought there were a number of other wealthy Hearts fans waiting in the wings at one point?

Edited February 13, 2014 by Jambos_1874