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Ann Budge update


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And.. if it was so easy to come in and strike a deal as a nice little earner for yourself with no risk and no effort, where were all the other bids to buy us out of administration? Don't tell me Ann Budge was the sole person in the business world who saw us for the sheep to be fleeced that we were.

I don't anyone thinks or feels that. She's had the plaudits and rightly so, she's here for even longer maybe not rightly so. She's little to gain about being a figurehead in her now passion and will never take money out of us for her own wealth but her investment and further investment is being protected. If she is asking for funds from the money the FOH have then that should be turned into shares right away. It's her leadership after all.

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MacDonald Jardine

And.. if it was so easy to come in and strike a deal as a nice little earner for yourself with no risk and no effort, where were all the other bids to buy us out of administration? Don't tell me Ann Budge was the sole person in the business world who saw us for the sheep to be fleeced that we were.

Of course it wasn't and she took a risk that the FOH scheme would be successful.

But assuming it is she doesn't do too badly.

You have to recognise what she did and is doing for the club, but again she can't be exempt from any criticism.

 

Sent from my SM-G930F using Tapatalk

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Lol. If we measured "success" on that we sure as hell wouldn't have 13k+ season ticket holders. Our cup records are abysmal.

I prefer winning cups to losing them, cheers.

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Of course it wasn't and she took a risk that the FOH scheme would be successful.

But assuming it is she doesn't do too badly.

You have to recognise what she did and is doing for the club, but again she can't be exempt from any criticism.

 

Sent from my SM-G930F using Tapatalk

This culture of 'find something to criticise' is a pain in the hoop tbh. Someone saves the club and facilitates us staying at Tynecastle and vastly improving our infrastructure... quick, desperately look for something nagative to offset it. Absolute oddball behaviour imo.

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And hers is no part-time, a few hours work per week non-exec or consultancy. She works a full time job as Hearts chair. She's of an age where she should be able to retire to enjoy the fruits of her business success. She works hard for the club to improve it's future which will benefit all of the wee gurners in the support who have given up what? A few quid.

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Footballfirst

Ann's Investments

?2,400,000 loan to finance the CVA

?100,000 to purchase the UBIG shares

?19,000 to purchase the Quantum shares

?300,000 interest free period on the loan

 

What Ann will take back from the club

?472,000 professional fees - Paid

?110,000 loan arrangement fee - Paid

?24,000 loan interest 2013/2014 - Paid

?172,000 loan interest 2014/15 - Paid

?3,750 Bidco's audit fees 2014/15 - Paid

?159,500 loan interest 2015/16 - Paid

?4,000 Bidco's audit fees 2015/16 - Paid

?300,000 future loan interest during the loan repayment period

?100,000 future share purchase for 75.1% of the club

?2,400,000 future loan repayment

 

Ann's legacy

Ownership of 17.4% of the club's shares for a net outlay of ?19,000

 

Ann has not taken a salary from the club, but her legacy will ensure that she will be well rewarded for her investment.

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Ann's Investments

?2,400,000 loan to finance the CVA

?100,000 to purchase the UBIG shares

?19,000 to purchase the Quantum shares

?300,000 interest free period on the loan

 

What Ann will take back from the club

?472,000 professional fees

?110,000 loan arrangement fee

?24,000 loan interest 2013/2014

?172,000 loan interest 2014/15

?3,750 Bidco's audit fees 2014/15

?159,500 loan interest 2015/16

?4,000 Bidco's audit fees 2014/15

?300,000 loan interest during the loan repayment period

?100,000 share purchase for 75.1% of the club

?2,400,000 loan repayment

 

Ann's legacy

Ownership of 17.4% of the club's shares for a net outlay of ?19,000

 

Ann has not taken a salary from the club, but her legacy will ensure that she will be well rewarded for her investment.

Thank **** for that. Her legacy to me is a hell of a lot more than what you've just typed out, that's for sure. I'm not a Scottish Football finance affecionado though. I prefer things like having a good stadium and a good team to watch.

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How many of the wee gurners of Kickback would sacrifice the first 5 years of their retirement when they could be off to Nassau or The French Riviera every week?

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Ann's Investments

?2,400,000 loan to finance the CVA

?100,000 to purchase the UBIG shares

?19,000 to purchase the Quantum shares

?300,000 interest free period on the loan

 

What Ann will take back from the club

?472,000 professional fees - Paid

?110,000 loan arrangement fee - Paid

?24,000 loan interest 2013/2014 - Paid

?172,000 loan interest 2014/15 - Paid

?3,750 Bidco's audit fees 2014/15 - Paid

?159,500 loan interest 2015/16 - Paid

?4,000 Bidco's audit fees 2015/16 - Paid

?300,000 future loan interest during the loan repayment period

?100,000 future share purchase for 75.1% of the club

?2,400,000 future loan repayment

 

Ann's legacy

Ownership of 17.4% of the club's shares for a net outlay of ?19,000

 

Ann has not taken a salary from the club, but her legacy will ensure that she will be well rewarded for her investment.

 

 

Thank you FF.

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How many of the wee gurners of Kickback would sacrifice the first 5 years of their retirement when they could be off to Nassau or The French Riviera every week?

Getting well rewarded mate. 19k well spent.

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Footballfirst

Thank **** for that. Her legacy to me is a hell of a lot more than what you've just typed out, that's for sure. I'm not a Scottish Football finance affecionado though. I prefer things like having a good stadium and a good team to watch.

 

Yes the "legacy" you talk about is very real and something we can all share in the future.

 

BTW ..................... FOH has already contributed ?6m towards your "legacy" with a further ?3.5m to go before it will own a single share, and that doesn't include all the ticket and merchandise sales.

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When you stand back and look at it in the cold light of day it is quite astonishing. FoH just gifts ?6m and gets a meaningless 20% "voting rights" and after another ?3m or so may if it keeps up the payments gain control. Ann lends ?2.3m, fully refundable, with generous interest, and all secured on the club's assets and gets full control for about 5 years (or indefinitely if FoH doesn't meet its payment obligations). She also grabs an ongoing share of 17.4% at about 1% of the cost FoH is paying per share.It's easy to see where the business brains lay in the FoH/Bidco negotiations. Except Ann's stewardship is beginning to reveal weaknesses not just because of her admitted lack of knowledge of football as a business but her lack of experience in a mass customer-facing business that relies on the goodwill of tens of thousands. Of the three most recent statements one was either a blatant lie or betrayed she didn't know what was going on, and one was an announcement that there will be another announcement next week. The football side and the new stand project are competing for what is the bigger shambles.

 

I feel an AGM question or two coming on.

Probably the most sensible post on KB for the last few months at least.

 

But you're obviously "pure Hibs" because you aren't down on your knees in front of the heirarchy.

 

We're an absolute shambles at the moment - although the 3 points against Killie would have you believe the last 8 months didn't happen.

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Yes, fair enough it does tell us to expect an announcement regarding the new head coach next week (although pointedly refrains from indicating that we'll be told who it is that point as far as i can see).

 

The point about the stand confirms a delay that we already knew about. Nothing new in that. Fair play to her, she is attempting to douse some of the lurid speculation surrounding the former MD, while stopping short of actually absolving him of blame for the delay mentioned in point 2, which would have been easy enough to do.

 

She has also fanned speculation with the rather vague comment about having undertaken a review of the football management structure, the references to the interview process, and the explicit recognition of Daly's contribution in having steadied the ship.

 

It's a so-called "holding" statement that actually raises more questions than it answers in my opinion. It might have been better to have said nothing at all. Or simply limit the comments to the points she wanted to make about Gardiner.

 

Anyway, only 8 days til the transfer window closes. I'm sure we'll know more at that point.

I don't really get the panic about the transfer window closing. Let's be honest it's pretty unlikely that we are going to buy a player who is currently under contract so the guys we are probably looking at will still be available after it closes. In fact we may be in a better position as some players who are under contract will probably arrange termination of their current deal at the 11th hour. We will also be able to bring players in on loan, although I would say that this isn't something I like.

 

To back this up

 

Berra - Out of contract

Lafferty - Out of contract

Smith - Out of contract

Smith Brown - Loan

Randall - Loan

The Grizzly - Out of contract

 

Both keepers we are looking at - Out of contract.

 

We are not a club who are spending big on players at other clubs!

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Yes the "legacy" you talk about is very real and something we can all share in the future.

 

BTW ..................... FOH has already contributed ?6m towards your "legacy" with a further ?3.5m to go before it will own a single share.

Ken. I've been chucking 20 quid a month at it from day one. If I'd known that all I had to do was take 19k out of my savings and put it in to reap all those rewards and privileges that you listed, then I'd have just done that instead.

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Lord Beni of Gorgie

Well throughout post.....

But sadly very wide. Steve harmison wide even
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i wish jj was my dad

Pretty sure she takes no salary. So if she is making around ?140k pa, she will earn much the same as an  average premiership player.

This will get lost in all the agenda driven seethe, speculation and lies.

 

You have to wonder why at her time of life she isn't just buggering off in her yacht and leaving us to find another Lithuanian chancer.

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This will get lost in all the agenda driven seethe, speculation and lies.

 

You have to wonder why at her time of life she isn't just buggering off in her yacht and leaving us to find another Lithuanian chancer.

Too right. You wonder if she ever sits there and tries to decide whether or not it was worth it.

 

Still, it is absolutely essential that we try and balance anything overwhelmingly positive out by nit picking over everything. Like the valuable service some on here are so desperate to provide.

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Footballfirst

Will be forever grateful to ann budge , without her we would have been gone

 

What if Ann was prepared to walk away at the last minute having given FOH a final take it or leave it offer/ultimatum?

 

Without FOH we would definitely have been gone, without Ann I'm not so sure.

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Selkirkhmfc1874

What if Ann was prepared to walk away at the last minute having given FOH a final take it or leave it offer/ultimatum?

 

Without FOH we would definitely have been gone, without Ann I'm not so sure.

Without ann no bank would've dealt with federation of hearts imo
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What if Ann was prepared to walk away at the last minute having given FOH a final take it or leave it offer/ultimatum?

 

Without FOH we would definitely have been gone, without Ann I'm not so sure.

Eh? She didn't though. Think I'm missing the point?

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i wish jj was my dad

Ann's Investments

?2,400,000 loan to finance the CVA

?100,000 to purchase the UBIG shares

?19,000 to purchase the Quantum shares

?300,000 interest free period on the loan

 

What Ann will take back from the club

?472,000 professional fees - Paid

?110,000 loan arrangement fee - Paid

?24,000 loan interest 2013/2014 - Paid

?172,000 loan interest 2014/15 - Paid

?3,750 Bidco's audit fees 2014/15 - Paid

?159,500 loan interest 2015/16 - Paid

?4,000 Bidco's audit fees 2015/16 - Paid

?300,000 future loan interest during the loan repayment period

?100,000 future share purchase for 75.1% of the club

?2,400,000 future loan repayment

 

Ann's legacy

Ownership of 17.4% of the club's shares for a net outlay of ?19,000

 

Ann has not taken a salary from the club, but her legacy will ensure that she will be well rewarded for her investment.

I certainly hope so too.  Compare her contribution to 'heroes' like David Obua and the clowns that paid them who helped get us into such a mess

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Selkirkhmfc1874

I certainly hope so too. Compare her contribution to 'heroes' like David Obua and the clowns that paid them who helped get us into such a mess

What about clowns like oshaniwa anderson juanma etc
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Winston Ingram

Ann's Investments

?2,400,000 loan to finance the CVA

?100,000 to purchase the UBIG shares

?19,000 to purchase the Quantum shares

?300,000 interest free period on the loan

 

What Ann will take back from the club

?472,000 professional fees - Paid

?110,000 loan arrangement fee - Paid

?24,000 loan interest 2013/2014 - Paid

?172,000 loan interest 2014/15 - Paid

?3,750 Bidco's audit fees 2014/15 - Paid

?159,500 loan interest 2015/16 - Paid

?4,000 Bidco's audit fees 2015/16 - Paid

?300,000 future loan interest during the loan repayment period

?100,000 future share purchase for 75.1% of the club

?2,400,000 future loan repayment

 

Ann's legacy

Ownership of 17.4% of the club's shares for a net outlay of ?19,000

 

Ann has not taken a salary from the club, but her legacy will ensure that she will be well rewarded for her investment.

Back of fag packet sums but if that was equivalent to 200k ish per year for all the ones she runs the club, it's all perfectly pair. As was AB ensuring protection for what was a clear personal risk.

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Ann's Investments

?2,400,000 loan to finance the CVA

?100,000 to purchase the UBIG shares

?19,000 to purchase the Quantum shares

?300,000 interest free period on the loan

 

What Ann will take back from the club

?472,000 professional fees - Paid

?110,000 loan arrangement fee - Paid

?24,000 loan interest 2013/2014 - Paid

?172,000 loan interest 2014/15 - Paid

?3,750 Bidco's audit fees 2014/15 - Paid

?159,500 loan interest 2015/16 - Paid

?4,000 Bidco's audit fees 2015/16 - Paid

?300,000 future loan interest during the loan repayment period

?100,000 future share purchase for 75.1% of the club

?2,400,000 future loan repayment

 

Ann's legacy

Ownership of 17.4% of the club's shares for a net outlay of ?19,000

 

Ann has not taken a salary from the club, but her legacy will ensure that she will be well rewarded for her investment.[/quote

 

What about the opportunity cost of her ?2.8m investment? Tieing that up in Hearts for six years will have cost her somewhere in the region of ?1m in lost capital gains. So her true investment is at least ?1m, the ?19k and also 6 years full time work for no salary.

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Footballfirst

Back of fag packet sums but if that was equivalent to 200k ish per year for all the ones she runs the club, it's all perfectly pair. As was AB ensuring protection for what was a clear personal risk.

 

Where was Ann's risk? If FOH failed to meet the obligations her investment was fully secured on Tynecastle and other club assets, and she near enough owned the club outright.  Worst case scenario, she shuts down the club and sells the land to a developer.  She wouldn't have got the ?21m that Cala was prepared to offer CPR, but I'm sure it would still be worth a lot more than her investment.

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i wish jj was my dad

What if Ann was prepared to walk away at the last minute having given FOH a final take it or leave it offer/ultimatum?

 

Without FOH we would definitely have been gone, without Ann I'm not so sure.

FF I normally like your posts but when you look at some the paranoia or outright arseholery amongst us that has been displayed at the first signs of a setback or stalled progress we would have been a bigger mess than the bigoted pricks along the M8.

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I tell you what I could afford an outlay of 20k but not a hope in hell I could shell out ?2.4mil + That's what AB did regardless of an end of 5/7 yrs net balance . Wasn't aware of anyone else coming close to these kind of funds.

That on top of instilling a necessary prudence and development throughout the club all aimed towards handing over a self sustaining football club. Yes, the last 6-9months have been very poor but the rebuilding of HMFC from 2014 is still on track. Yes, we need desperately to get right back on a fwd trajectory on field, that starts with the very recent results and the appointment and approach aimed solely at achieving just that. I believe AB knows that only too well as she and she alone (out of the directors) has way too much to loose. So we need a large dose of faith and patience both now and over the coming seasons.

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Footballfirst

What about the opportunity cost of her ?2.8m investment? Tieing that up in Hearts for six years will have cost her somewhere in the region of ?1m in lost capital gains. So her true investment is at least ?1m, the ?19k and also 6 years full time work for no salary.

 

You will have to show me how you calculate the ?1m in lost capital gains.

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You will have to show me how you calculate the ?1m in lost capital gains.

5% return each year for six years gets you pretty close

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Ann's period in charge is beginning to look like and go the way of every other owner we have had in living memory. All start off as hero's saving us from one or other disaster.... A honeymoon period of a couple of years or so is turn followed by a period of poor and idiotic decisions that soon have the fans demanding a change.

 

For the record this is an observation, not a criticism of her. I am supportive of what she has done for the club.

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See when you look at it. I wish she'd never bothered saving the club. The greedy selfish witch.

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Steady. We saved the club, she vastly contributed and is now controlling all the affairs of what is a shambles at the moment.

steady,without Ann putting money up for Cva there would have been no club for us to save.
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Ann's period in charge is beginning to look like and go the way of every other owner we have had in living memory. All start off as hero's saving us from one or other disaster.... A honeymoon period of a couple of years or so is turn followed by a period of totally idiotic behaviour from supporters who are desperate to try and diminish the great work that is completed.

FTFY

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I tell you what I could afford an outlay of 20k but not a hope in hell I could shell out ?2.4mil + That's what AB did regardless of an end of 5/7 yrs net balance . Wasn't aware of anyone else coming close to these kind of funds.

That on top of instilling a necessary prudence and development throughout the club all aimed towards handing over a self sustaining football club. Yes, the last 6-9months have been very poor but the rebuilding of HMFC from 2014 is still on track. Yes, we need desperately to get right back on a fwd trajectory on field, that starts with the very recent results and the appointment and approach aimed solely at achieving just that. I believe AB knows that only too well as she and she alone (out of the directors) has way too much to loose. So we need a large dose of faith and patience both now and over the coming seasons.

good post.
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Ann's Investments

?2,400,000 loan to finance the CVA

?100,000 to purchase the UBIG shares

?19,000 to purchase the Quantum shares

?300,000 interest free period on the loan

 

What Ann will take back from the club

?472,000 professional fees - Paid

?110,000 loan arrangement fee - Paid

?24,000 loan interest 2013/2014 - Paid

?172,000 loan interest 2014/15 - Paid

?3,750 Bidco's audit fees 2014/15 - Paid

?159,500 loan interest 2015/16 - Paid

?4,000 Bidco's audit fees 2015/16 - Paid

?300,000 future loan interest during the loan repayment period

?100,000 future share purchase for 75.1% of the club

?2,400,000 future loan repayment

 

Ann's legacy

Ownership of 17.4% of the club's shares for a net outlay of ?19,000

 

Ann has not taken a salary from the club, but her legacy will ensure that she will be well rewarded for her investment.

Not that I'm too fussed about this in any respect but professional fees and loan arrangement fees usually go to those who actually facilitated the legals and the finance i.e. the lawyers (mostly) and whatever banks etc are involved. You can't just move great big chunks of money around, it costs a fortune, as shown above I suppose. These payments aren't some sort of profit or nest egg she just tucked away in a sock under her bed.

 

Isn't it just the case that basically we had an agreement to borrow her money but our/FOH cash is paying for the professional advice required to make it happen? Seems completely fair to me.

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Dusk_Till_Dawn

There's no point picking at her finances. Whatever she stands to earn, she's done us a huge favour by getting involved.

 

It feels like it's all getting on top of her though and we're losing our way. It's going to be interesting to see in two or three years time if this period was a necessary mess for long term gain or if this is the beginning of the end for the Budge regime

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What if Ann was prepared to walk away at the last minute having given FOH a final take it or leave it offer/ultimatum?

 

Without FOH we would definitely have been gone, without Ann I'm not so sure.

I enjoy your factual posts. Been very interesting on the Rangers thread in shedding light on their finanical machinations over the years.

 

But this speculation feels like you have an agenda. If not, I'm sure you must be aware of the current climate. Levein has been in the sights for long enough and now you are helping to construct a narrative in painting Budge in a bad, and frankly, unwarranted, light.

 

 

 

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How do you calculate the loss of time spent with your feet up and the sun beating down on your napper?

I wonder about that quite a lot. Usually when I read some of the comments on here. [emoji58]

 

Bringing the club out of admin is one thing, rebuilding the club and academy another, but then jumping almost straight into a major construction project as well? Must be bloody exhausting and so stressful - especially when a few banana skins appear at the same time.

 

I'd buy her a mojito for sure.

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There's no point picking at her finances. Whatever she stands to earn, she's done us a huge favour by getting involved.

 

It feels like it's all getting on top of her though and we're losing our way. It's going to be interesting to see in two or three years time if this period was a necessary mess for long term gain or if this is the beginning of the end for the Budge regime

I actually think the opposite. I think she tried to take a back seat and left CL etc to run the show and set the direction...as that has started to impact on on parts of the club she firmly back in charge.

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In all honesty, since Budgement day onwards, I actually dislike many Hearts supporters more than Hibs fans. We have some utter belters in our support.

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I wonder about that quite a lot. Usually when I read some of the comments on here. [emoji58]

 

Bringing the club out of admin is one thing, rebuilding the club and academy another, but then jumping almost straight into a major construction project as well? Must be bloody exhausting and so stressful - especially when a few banana skins appear at the same time.

 

I'd buy her a mojito for sure.

Yep. It's not exactly a little pin money job in the cake shop in the village. It's a high profile, high responsibility executive position.

 

She's made mistakes. She's perhaps dithered hither and thither. Sadly she's not been afforded much understanding.

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