Hearts AGM

[Footballfirst]

Did FoH ever seriously suggest that they were aiming for 25,000 contributors? Or is that a sly dig?

 

Alex Mackie - November 2012

http://www.heraldscotland.com/sport/football/talks-to-continue-over-fans-takeover.19422505

 

"If we could harness 25,000 Hearts fans, and we think we can, paying ?10 a month then that's ?250,000 a month coming in. The fans should know that would be used legitimately.

[Don Dan]

Sorry RedM, but I respectfully disagree. 

 

Regardless of the potential audiences of both twitter and facebook (I'd be included in both numbers), the club shouldn't be relying on people checking those fora on a daily basis in case there's news relating to something as important as the AGM. When I do check those sites, I don't (and suspect some, maybe even most, would be the same) go back and check everything that's been posted since the last time I looked at the site- therefore even if that many people could have had visibility, it shouldn't be assumed they have. 

 

While you could make a similar argument about people not checking their email daily, the ball's been placed in their court if they've been at least been specifically targeted with a message that will relate to them. 

 

This isn't a big deal, and I don't want to make it into one. I just don't want to see the club relying on facebook/twitter for important announcements to shareholders!

I'm not on Twitter or facebook and don't intend to be so I rely on email updates or on here. I do often visit the web site but not on a regular basis.

[broxburnjambo]

I'm sure this started off as a venture including the HMSA and The Federation of Hearts Supporters Club (folk were asked to donate ?19.14 each) to erect a memorial on on the 100th anniversary of McCraes and the amount to be raised wasn't an inconsiderabe amount either.

 

It got sidetracked with the initial share offer then admin as folk used their spare cash to try and save the club.

 

And now managed to find more info.  Not sure if ?60k is still the figure required.

 

http://1914memorial.org/

You are correct in some off what you say.

 

The venture is a joint venture of the Federation of Hearts supporters clubs and the HMSA and now have the board of Hearts fully on side. The statue has nothing to do with Macrae's battalion, it is statue to celebrate and remember what was and should have been Hearts greatest team.

Fund raising was stopped when the club entered administration and the contributors were contacted with what they wanted done with the funds already collected. It was agreed that the statue and fund raising should continue once the club exited administration and were on a sound financial footing. Although it was planned to be in place for the 1914 anniversary, it had to be delayed with what was going on at the club.

Since then we have continued to fund raise and are now in a position to start work on the Statue. Hence the announcement today at the AGM.

[Don Dan]

It's nice to here these words.

 

Hearts owner Ann Budge

"Our cash situation is very positive and everything to do with building the income stream is working very positively also."

 

 

Ann also reiterated that Hearts are the "first" club in Britain to sign up to the living wage which for some reason never get a mention in the Media.

[hughesie27]

It's nice to here these words.

 

Hearts owner Ann Budge

"Our cash situation is very positive and everything to do with building the income stream is working very positively also."

 

 

Ann also reiterated that Hearts are the "first" club in Britain to sign up to the living wage which for some reason never get a mention in the Media.

Because FC United of Manchester or whatever their name is were first. Admittedly they are only semi-pro but I wouldn't use that against them.

[Homme]

I seen it in the media.

[redm]

Brilliant reply by Craig.

 

Congrats on your Administration promotion by the way. [emoji4]

 

 

Sent from my iPad using Tapatalk

 

Cheers!

[redm]

Sorry RedM, but I respectfully disagree. 

 

Regardless of the potential audiences of both twitter and facebook (I'd be included in both numbers), the club shouldn't be relying on people checking those fora on a daily basis in case there's news relating to something as important as the AGM. When I do check those sites, I don't (and suspect some, maybe even most, would be the same) go back and check everything that's been posted since the last time I looked at the site- therefore even if that many people could have had visibility, it shouldn't be assumed they have. 

 

While you could make a similar argument about people not checking their email daily, the ball's been placed in their court if they've been at least been specifically targeted with a message that will relate to them. 

 

This isn't a big deal, and I don't want to make it into one. I just don't want to see the club relying on facebook/twitter for important announcements to shareholders!

 

Totally agree with you, and I don't expect it'll work like that any other year. They took time to explain that many things had ben rushed through and it wasn't ideal at all, they also assured the attendees that none of it will happen again.

 

My post was more about making the most of a bad situation, they did what they could with the tools they had sort of thing. It wasn't ideal but it still would've had a decent reach.

[Notbrainwashed]

It's nice to here these words.

 

 

...which for some reason never get a mention in the Media.

 

Were those her words, or yours?  I note it isn't quoted.  And, like Homme said, I also saw it in the media.

[Don Dan]

Were those her words, or yours? I note it isn't quoted. And, like Homme said, I also saw it in the media.

t

 

My words about the media Ann's words about being the first club.

My perception is its not the media top story. However I did here Sky I think talk about English clubs being the first.

 

 

Sent from my iPhone using Tapatalk

[Don Dan]

 

Some media there during the meeting but these people were shareholders[emoji2]

 

 

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[Coco]

I am thoroughly enjoying the new Hearts both on and off the park.  It is obvious where money is being spent.  And clearly the use of the FoH subsidy is as planned.  And as we have heard there had been areas of spending which had been avoided during the Romanov/administration era.

 

However, I remain slightly uneasy about the club running outwith its means - again (if you take FoH donations out of the equation).  The history of football clubs is littered with overspending - and show that once overspending starts it is not easy to stop overspending.  We seem to be in another form of speculate to accumulate - with more players added when revenue rose (good players at that of course) rather than putting the cash aside.  Presumably the wage bill will have to rise if we get promoted - and this will drain some of the potential additional revenue.  With no lending facilities available, if FoH cash is swallowed into working capital it does not become available as the banker of last resort for Hearts.

 

Obviously we are not in a similar situation to the two times in the past few years when the ground and club were threatened.  But are FoH contributions fungible for 'proper' revenues?  Or really just for 2 years?

[Don Dan]

I am thoroughly enjoying the new Hearts both on and off the park.  It is obvious where money is being spent.  And clearly the use of the FoH subsidy is as planned.  And as we have heard there had been areas of spending which had been avoided during the Romanov/administration era.

 

However, I remain slightly uneasy about the club running outwith its means - again (if you take FoH donations out of the equation).  The history of football clubs is littered with overspending - and show that once overspending starts it is not easy to stop overspending.  We seem to be in another form of speculate to accumulate - with more players added when revenue rose (good players at that of course) rather than putting the cash aside.  Presumably the wage bill will have to rise if we get promoted - and this will drain some of the potential additional revenue.  With no lending facilities available, if FoH cash is swallowed into working capital it does not become available as the banker of last resort for Hearts.

 

Obviously we are not in a similar situation to the two times in the past few years when the ground and club were threatened.  But are FoH contributions fungible for 'proper' revenues?  Or really just for 2 years?

 

From today,

 

Speaking at her first AGM as club chairman since buying Hearts out of administration in May, the Edinburgh businesswoman revealed the club expects to make a profit of around ?400,000 this year - but only due to the ?1.4m of additional funding from fan donations to the Foundation of Hearts.

 

FoH is providing the sum annually over the first two years of the new regime, ahead of re-paying the ?2.4m Mrs Budge spent to purchase Hearts.

 

That working capital, which is non-ring-fenced and spent in the club's budget the same way as their other income streams, meant the annual accounts to June 2014 were signed off with "material uncertainty" over its finances if the FoH cash was to stop coming in.

[Maroon Sailor]

http://www.bbc.co.uk/sport/0/scotland/30520366

 

Another misleading headline

 

She never said that in the interview !

[Don Dan]

STV take on today's meeting.

 

And a wee cameo by me in there to.

[Francis Albert]

Given that Our FOH contributions are currently keeping the club out of the red, how will the amount paid by Anne Budge to purchase the club be repaid? Presumably this will be taken care of through increased revenue following promotion and sponsorship etc??

My understanding is that the ?3.4m FoH payment before Ann is repaid was to cover "one off" costs of stabilising the club so that it was in a position to stand on its own feet

when FoH starts repaying Ann and thereafter. What todays numbers show to me is that some budgeted costs had been underestimated and advantage has been taken of revenues exceeding

budget to cover those and also make some modest investment in playing staff etc to improve our chances of quick promotion and perhaps accelerate improvements to the Academy. That seems to me very sensible - there is no point in building an unnecessarily high cash balance. What needs to be avoided is building up the cost base to such an extent it is (over-) dependent

on FoH contributions beyond the initial 2 year period, thus threatening the pay back to Ann and financial stability in the longer term. At the least a conservative view should be taken of FoH contributions in the longer term - great if they continue to be available but Hearts should aim to be living within "normal" revenue streams. (I suppose I should say I have

no doubt am sure that is exactly Ann's and the HMFC Board thinking, not a suggestion that they would be at all reckless - no sly digs here!).

[Craigieboy]

A great interview by Ann on Hearts TV. So pleased to have her. She conducts herself impeccably.

 

Who was the absolute fecking arsehole who pressed her on the Rangers situation?

 

[Footballfirst]

More info and pics of the presentation slides on the official site.

 

http://www.heartsfc.co.uk/news/4041

 

e.g.

[Disco Dave]

Good post FA. :-)

 

I would like to think that the exceptional expenditure items such as bringing the stadium back up to a reasonable state, new IT infrastructure etc will all be completed within the first two years. Then these costs just become routine maintenance which will hopefully be much smaller amounts in comparison.

 

Extra revenue by hopefully getting back to the Premiership, ?1m if the figure quoted today is correct should then see the difference of "losing" the FOH income stream in the longer term having minimal impact.

 

Prudent management of the wage budget and sensible forecasting of future income should see us sitting pretty to buy Budge out as planned.

[Don Dan]

(Post meeting note: Mrs Budge would like to extend her thanks to Jambos Kickback and others who instantly complied with her request.)

 

I wonder why she was looking straight at me when she made that request[emoji15]

 

 

 

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[scott herbertson]

My understanding is that the ?3.4m FoH payment before Ann is repaid was to cover "one off" costs of stabilising the club so that it was in a position to stand on its own feetwhen FoH starts repaying Ann and thereafter. What todays numbers show to me is that some budgeted costs had been underestimated and advantage has been taken of revenues exceedingbudget to cover those and also make some modest investment in playing staff etc to improve our chances of quick promotion and perhaps accelerate improvements to the Academy. That seems to me very sensible - there is no point in building an unnecessarily high cash balance. What needs to be avoided is building up the cost base to such an extent it is (over-) dependenton FoH contributions beyond the initial 2 year period, thus threatening the pay back to Ann and financial stability in the longer term. At the least a conservative view should be taken of FoH contributions in the longer term - great if they continue to be available but Hearts should aim to be living within "normal" revenue streams. (I suppose I should say I haveno doubt am sure that is exactly Ann's and the HMFC Board thinking, not a suggestion that they would be at all reckless - no sly digs here!).

Great post

 

I am sure you are right that some pragmatic decisions have been but it is clear there is an eye on the bottom line - an approach that has been posted missing for about 15 years

[DETTY29]

To date c.150 of c.8000 shareholders have requested to continue receiving hard copy AGM notices and papers rather than email notices.

[Mikey1874]

My understanding is that the ?3.4m FoH payment before Ann is repaid was to cover "one off" costs of stabilising the club so that it was in a position to stand on its own feet

when FoH starts repaying Ann and thereafter. What todays numbers show to me is that some budgeted costs had been underestimated and advantage has been taken of revenues exceeding

budget to cover those and also make some modest investment in playing staff etc to improve our chances of quick promotion and perhaps accelerate improvements to the Academy. That seems to me very sensible - there is no point in building an unnecessarily high cash balance. What needs to be avoided is building up the cost base to such an extent it is (over-) dependent

on FoH contributions beyond the initial 2 year period, thus threatening the pay back to Ann and financial stability in the longer term. At the least a conservative view should be taken of FoH contributions in the longer term - great if they continue to be available but Hearts should aim to be living within "normal" revenue streams. (I suppose I should say I have

no doubt am sure that is exactly Ann's and the HMFC Board thinking, not a suggestion that they would be at all reckless - no sly digs here!).

great summary

[Paolo]

To date c.150 of c.8000 shareholders have requested to continue receiving had copy AGM notices and papers rather than email notices.

I will reduce that by one tonight.

[DETTY29]

Also got the impression that the state of the financial processes were in a horrendous mess and it was no simple task to get these in any form of order in time for the AGM.

[Kiwidoug]

Did she say when Rudi was coming back?

[Papa]

Was anything said about the continuing validity of original shares? These have always been relatively worthless but are they still valid?

[Mikey1874]

More info and pics of the presentation slides on the official site.

 

http://www.heartsfc.co.uk/news/4041

 

e.g.

good comms on the website - well done Hearts

[Paolo]

Was anything said about the continuing validity of original shares? These have always been relatively worthless but are they still valid?

They are. I have them, and was invited to the AGM, but could not go. They are the exact same shares as the ones bought in the last share issue. I am currently getting my holdings merged, as I was down as two people.

[CJGJ]

My understanding is that the ?3.4m FoH payment before Ann is repaid was to cover "one off" costs of stabilising the club so that it was in a position to stand on its own feet

when FoH starts repaying Ann and thereafter. What todays numbers show to me is that some budgeted costs had been underestimated and advantage has been taken of revenues exceeding

budget to cover those and also make some modest investment in playing staff etc to improve our chances of quick promotion and perhaps accelerate improvements to the Academy. That seems to me very sensible - there is no point in building an unnecessarily high cash balance. What needs to be avoided is building up the cost base to such an extent it is (over-) dependent

on FoH contributions beyond the initial 2 year period, thus threatening the pay back to Ann and financial stability in the longer term. At the least a conservative view should be taken of FoH contributions in the longer term - great if they continue to be available but Hearts should aim to be living within "normal" revenue streams. (I suppose I should say I have

no doubt am sure that is exactly Ann's and the HMFC Board thinking, not a suggestion that they would be at all reckless - no sly digs here!).

Did someone hack your JKB account FA ? 

 

That is a rational statement from you and an understanding of the current position.

 

Now next question please !!!!

[Guest oldcastlerock2012]

Sorry RedM, but I respectfully disagree.

 

Regardless of the potential audiences of both twitter and facebook (I'd be included in both numbers), the club shouldn't be relying on people checking those fora on a daily basis in case there's news relating to something as important as the AGM. When I do check those sites, I don't (and suspect some, maybe even most, would be the same) go back and check everything that's been posted since the last time I looked at the site- therefore even if that many people could have had visibility, it shouldn't be assumed they have.

 

While you could make a similar argument about people not checking their email daily, the ball's been placed in their court if they've been at least been specifically targeted with a message that will relate to them.

 

This isn't a big deal, and I don't want to make it into one. I just don't want to see the club relying on facebook/twitter for important announcements to shareholders!

I would have expected anyone interested in the AGM and Hearts in general would be proactively checking the Hearts website for news at times when they know something might be happening.

[Mikey1874]

good coverage on STV there - first item on Sport

[Maroon Sailor]

good coverage on STV there - first item on Sport

It was - but the next item had me laughing with that wifey at Ibrox sticking up for Ally and giving Easdale some shit saying Ally was the only honest person in that place, no like you lot - sleaze bags !

 

Oh she will be up on the BBC shortly

[Paolo]

Honest Ally.

 

[Mikey1874]

It was - but the next item had me laughing with that wifey at Ibrox sticking up for Ally and giving Easdale some shit saying Ally was the only honest person in that place, no like you lot - sleaze bags !

 

Oh she will be up on the BBC shortly

yes - missed what was said but looked like a classic

 

the lady certainly got heard!

[Maroon Sailor]

What kind of questions were put to Ann, if she is talking about Robbie Neilson moving on to a bigger club ?

 

Is this a journalistic ploy to unsettle things. He's only been in management for a few months, still learning his trade !

[Clerry Jambo]

http://sport.stv.tv/football/clubs/hearts/303906-hearts-look-to-strengthen-in-january-with-promotion-priority-at-tynecastle/

[Turkishcap]

Did she say when Rudi was coming back?

Naughty.

[Turkishcap]

http://sport.stv.tv/football/clubs/hearts/303906-hearts-look-to-strengthen-in-january-with-promotion-priority-at-tynecastle/

Just watched this short clip.......must seem like another dimension for sevco, Ally would need the Fringe team to investigate If you aint watched Fringe then you have so missed out.

[Maroon Sailor]

Nothing on Reporting Scotland about Hearts AGM

 

Tossers

 

 

You watch on Monday when it's the Rangers AGM

[Kiwidoug]

Doesn't it all just make you feel great.  Highly successful on the field.  Brilliantly run off it.

 

Must be a great chance that promotion might bring with it a major sponsor giving the prospect of a significant boost to the playing ranks.

 

Wouldn't Hibs and The New Rangers love to swap places with us.

[Malinga the Swinga]

What kind of questions were put to Ann, if she is talking about Robbie Neilson moving on to a bigger club ?

Is this a journalistic ploy to unsettle things. He's only been in management for a few months, still learning his trade !

she said Robbie will undoubtedly move to a bigger club but when he does, we have succession planning in place to cover this. Hopes we hold on to him, but the more successful he is, the better chance of him moving on to bigger and better clubs.

[Maroon Sailor]

she said Robbie will undoubtedly move to a bigger club but when he does, we have succession planning in place to cover this. Hopes we hold on to him, but the more successful he is, the better chance of him moving on to bigger and better clubs.

I just think it's strange to have speculation about his future already.

 

I think he's got 3 or 4 years in front of him at Hearts if things go well.

[Paolo]

I just think it's strange to have speculation about his future already.

 

I think he's got 3 or 4 years in front of him at Hearts if things go well.

I agree. Promotion, and two or three years in the Premiership, with noticeable improvement, then he may attract interest.

[Francis Albert]

I would have expected anyone interested in the AGM and Hearts in general would be proactively checking the Hearts website for news at times when they know something might be happening.

I did proactively check the Hearts website but on the question of the promised email address for AGM questions (the question in the OP that set the baying mob off) nothing

appeared between Ann's statement of 24th November and the Twitter message at about 2 pm yesterday. Ann apparently said today the delay was unacceptable. As I invariably do, I agree with Ann. I was very pleased by the level of communication at today's AGM. Clearly Ann and the club don't share the paranoia of some on here on here about people asking questions and

seeking information. I didn't think for a moment they would.

 

I wonder why those ridiculing the idea that any business would answer the questions being asked haven't been on to attack Ann and the board for doing so.

[Francis Albert]

Did someone hack your JKB account FA ? 

 

That is a rational statement from you and an understanding of the current position.

 

Now next question please !!!!

Thanks. You won't have to wait long!

[willie wallace]

Unfortunately I couldn't stay for the Q&A (domestic arrangements - sorry CJGJ), but I listened to Ann Budge, Eric Hogg and Craig Levein's presentations.  They were all very professional and I did get answers to some of my questions. No media allowed in the meeting (unless they were shareholders).

 

If I've read the slides correctly from the back of the Gorgie Suite

 

Initial projections were made on 8,000 STs

 

Turnover was originally budgeted at ?4.233M but is now estimated to come in at ?5.573M

Staff costs ?3.095M to ?3.447M

Other costs ?2.414M to ?3.012M

Forecast loss -?1.276M to -?0.886M (before FOH money)

 

Costs

Riccarton ?540K  (incl Rent + share of utilities + coaches + kit)

Match Day costs ?360K (incl Stewarding + policing) 

Stadium costs  ?335K  (incl Rates + Cleaning)

Repairs and maint ?250K

Utilities ?235K

Legal Audit & Professional costs ?140K

Credit Card fees ?120K (5% charge)

Insurance ?40K

Total = ?2.02M

 

Other costs include transport accommodation, mobile phones etc

 

Forecast Wages to turnover ratio 67% -  Football side 54%, First team  40% (47% with bonuses)

 

At least now we can see where the FOH money is going.

FF,the wages to turnover ratio seems very high if i am reading this correctly.When this topic is normally discussed do they refer to all wages or

just the football side.You have split it so i am not quite sure.

[Don Dan]

Nothing on Reporting Scotland about Hearts AGM

 

Tossers

 

 

You watch on Monday when it's the Rangers AGM

Absolutely and that from the Club that bar them from press conferences and stuff.

 

 

Sent from my iPad using Tapatalk

[Footballfirst]

FF,the wages to turnover ratio seems very high if i am reading this correctly.When this topic is normally discussed do they refer to all wages or

just the football side.You have split it so i am not quite sure.

 

It's not me who has split it. These were figures supplied by Eric Hogg. The normal measure is all wage costs of the business, although it seems that Rangers led the way in spliting it down to the first team squad level, so that the figure looks more reasonable.  I agree that 67% is a bit on the high side. I would look for it to be below 60% if it is to be sustainable.  I think that it is symptomatic of the club speculating to achieve promotion at the first time of asking.  It's a risk, but thus far seems to be working out.

[willie wallace]

It's not me who has split it. These were figures supplied by Eric Hogg. The normal measure is all wage costs of the business, although it seems that Rangers led the way in spliting it down to the first team squad level, so that the figure looks more reasonable.  I agree that 67% is a bit on the high side. I would look for it to be below 60% if it is to be sustainable.  I think that it is symptomatic of the club speculating to achieve promotion at the first time of asking.  It's a risk, but thus far seems to be working out.

 

Sorry mate,i know it was not you who split it.Did Eric Hogg pass any comment on the figure.I am very surprised it is as high as this.