?1M Raised from shares

[Auld Reekin']

HEARTS director Sergejus Fedotovas today announced that the threat of liquidation no longer hangs over Tynecastle after more than ?1million was raised through the club?s share issue.

 

 

 

The Lithuanian thanked ?supporters for a phenomenal effort, which took the final total beyond ?1m following a late surge in sales of shares this week. The offer closed at 5pm yesterday, with Hearts reporting a seven-figure sum after ?an astonishing rally from fans.

Fedotovas said he had never encountered such a level of commitment from football fans before. Thanks to more than 4000 people who bought shares, Hearts are no longer in danger of going bust ? as had been the case just a few weeks ago when Her Majesty?s Revenue and Customs lodged a winding up order against the club over unpaid tax. More than 50 per cent of shares offered have been taken up and, although Hearts? initial aim was to raise ?1.79m, the fact they have surpassed ?1m is being considered a huge success.

?Despite the good effort, we will still be facing a funding gap until the end of the season, but this is significantly smaller than it was in the beginning,? said Fedotovas, speaking

exclusively to the Evening News. ?All the dangers of liquidation are in the past. Now we can work forward with confidence and look to achieve good

financial results for the club.

?We are looking into the

future and, if fans continue to support the club and continue coming to games, that will be enough to see the club to

financial stability.

?We have been able to raise over ?1?million. We regard this as a good foundation for the future and it helps us save the club at a difficult time. It

provides us funding required for the immediate short term.?

Last weekend, the total raised from shares was just over ?800,000. A late surge in sales brought the figure over the ?1m mark and Fedotovas admitted being astounded by supporters? dedication to the cause.

?The right words are not available to thank the fans for their efforts,? he continued. ?I believe over 4000 people have bought shares. Obviously, many more have helped in buying tickets for games and raising funds in other ways. We are really grateful to all of them.

?We will be looking to mark the efforts of the fans, either on the internet or somewhere at Tynecastle.

?I have definitely never experienced anything resembling this, the way the Hearts supporters have received the call and reacted to important things happening to the club.

?Obviously, I?m surprised that not a lot of wealthy businesses have been responsive to the share offer. Most of the donations were just small donations from simple fans. That shows we have a good core support which is really responsive to the situation.?

 

 

That's gratitude for you...

 

[SUTOL]

The "funding gap" when the share issue was launched was ?1.79m. Since that point the club agreed to pay a ?500k instalment to HMRC. So I presume the funding gap for the season is now ?2.29m. Has the club ever confirmed this?

 

The agreement reached with HMRC was for three installment over three years, starting from May 2013.

 

There doesn't seem from that, to be a need to pay ?500k in May 2013, that years payment is due, by end of April 2014.

It will obviously depend on the actual wording of the agreement reached, and there were rumours of monthly installments but nothing concrete that I've seen.

But to panic that we need ?500k in May is an over-reaction in my opinion.

[Jezza]

Where's the mill coming from?

[SUTOL]

 

 

That's gratitude for you...

 

 

 

 

Serge reads KB type of statement IMHO

 

[Hungry hippo]

Where's the mill coming from?

It's on Slateford Road. Decent pub but I wouldn't take a new girlfriend there.

[Coco]

Once again the 'gap' is referred to as being to the end of the season.

 

Are the club basing this 'gap' on on the shortfall after counting the revenue raised from selling 2013-14 season tickets (perhaps as early as March once again)?

 

If so - where is the revenue coming from to run the club 'sustainably' in 2013-14?

 

And if not - then apply ?800k of season ticket revenue to this year's costs - and cut the wage bill by that amount for next year.

[The Mighty Thor]

Once again the 'gap' is referred to as being to the end of the season.

 

Are the club basing this 'gap' on on the shortfall after counting the revenue raised from selling 2013-14 season tickets (perhaps as early as March once again)?

 

If so - where is the revenue coming from to run the club 'sustainably' in 2013-14?

 

And if not - then apply ?800k of season ticket revenue to this year's costs - and cut the wage bill by that amount for next year.

I'd suggest that it's this lack of clarity in the figures that most likely prevents the 'wealthy businesses' or high net worth individuals from being responsive.

[The Merse]

I thought 1.79m was for worst case scenario..

 

Is that where we're at then?

[tartofmidlothian]

Once again the 'gap' is referred to as being to the end of the season.

 

Are the club basing this 'gap' on on the shortfall after counting the revenue raised from selling 2013-14 season tickets (perhaps as early as March once again)?

 

If so - where is the revenue coming from to run the club 'sustainably' in 2013-14?

 

And if not - then apply ?800k of season ticket revenue to this year's costs - and cut the wage bill by that amount for next year.

 

The departure of players whose wages make our outgoings untenable.

 

Also, did the club base this year's figures on 2012-13 season tickets sold before summer?

[Jammy T]

 

That's gratitude for you...

 

 

To be fair, from a log of what I read on here, he's probably about right with that....

[Jammy T]

I don't remember the "funding gap" ever being equated to the ?1.79m ie the maximum income from the share issue. .

 

I was sure we were told that that figure was what we needed for the rest of the season. Happy to be proven wrong on this one to be honest

[Jammy T]

Once again the 'gap' is referred to as being to the end of the season.

 

Are the club basing this 'gap' on on the shortfall after counting the revenue raised from selling 2013-14 season tickets (perhaps as early as March once again)?

 

If so - where is the revenue coming from to run the club 'sustainably' in 2013-14?

 

And if not - then apply ?800k of season ticket revenue to this year's costs - and cut the wage bill by that amount for next year.

 

To be fair to Serge/the board - we wont know what the gap will be next season until our squad settles down over the next 2 transfer windows with all free contractors leaving and those that are asked and agree to stay staying

[Coco]

 

The departure of players whose wages make our outgoings untenable.

 

Also, did the club base this year's figures on 2012-13 season tickets sold before summer?

 

I doubt that player sales are going to raise significant revenue.

 

It would seem very likely to me that 2012-13 season ticket revenue was used from spring 2012 onwards and therefore the available cash for this year dried up in the autumn. What happens from summer 2013?

[Coco]

To be fair to Serge/the board - we wont know what the gap will be next season until our squad settles down over the next 2 transfer windows with all free contractors leaving and those that are asked and agree to stay staying

 

If all the season money is used to pay this year's bills - i.e. if included in the cash flow before the 'gap' - then there will be virtually nothing to pay players next year.

[Drumelzier]

I doubt that player sales are going to raise significant revenue.

 

It would seem very likely to me that 2012-13 season ticket revenue was used from spring 2012 onwards and therefore the available cash for this year dried up in the autumn. What happens from summer 2013?

 

ToM is referring to the savings on wages.

[On my Lunch]

A terrific achievement to reach this milestone

[2NaFish]

I doubt that player sales are going to raise significant revenue.

 

It would seem very likely to me that 2012-13 season ticket revenue was used from spring 2012 onwards and therefore the available cash for this year dried up in the autumn. What happens from summer 2013?

 

There's a long list of players out of contract. With any luck one of the youngsters getting a run out now will have had a good season by then and we can punt them.

[CJGJ]

Win the semi final and that will ensure there is no funding gap.

 

One game...one win ... and that will see us to summer..................no pressure then !!

[Coco]

ToM is referring to the savings on wages.

 

Reducing costs is one fairly inevitable thing. But reducing costs does not mean that there is revenue available.

 

If all the season ticket money is used for this year's squad by the end of this season ... there will be no money to pay cheaper players next season.

[Guest oldcastlerock2012]

Once again the 'gap' is referred to as being to the end of the season.

 

Are the club basing this 'gap' on on the shortfall after counting the revenue raised from selling 2013-14 season tickets (perhaps as early as March once again)?

 

If so - where is the revenue coming from to run the club 'sustainably' in 2013-14?

 

And if not - then apply ?800k of season ticket revenue to this year's costs - and cut the wage bill by that amount for next year.

 

Our wage bill is heading for st mirren like levels for a while. Should be enough to make us self-sustaining with any extra cash paying down debt.

[Coco]

Our wage bill is heading for st mirren like levels for a while. Should be enough to make us self-sustaining with any extra cash paying down debt.

 

Not if the cash is being used this season!

[Martin_T]

 

 

Our wage bill is heading for st mirren like levels for a while. Should be enough to make us self-sustaining with any extra cash paying down debt.

 

I seriously doubt that our wage bill will be anything like ?1million a season.

[vintage1874]

Our wage bill is heading for st mirren like levels for a while. Should be enough to make us self-sustaining with any extra cash paying down debt.

 

Looks like the way we will go. It is important that the club gets all the top youngsters on long deals so we can make some money if they attract interest from other clubs.