FOH Share Transfer - Delayed

[Footballfirst]

FOH is due to publish their latest 6 monthly newsletter/blog by the end of the month (unless they have decided to create an FOH annual instead).   Perhaps they will explain in more detail what has happened to funds collected since the Bidco loan was repaid in full at the end of January, together with the outstanding governance issues.

 

Delaying the transfer so that we can have a party doesn't seem to be a strong reason for holding off for an indeterminate period.  If however, the club has asked that FOH hands over any cash raised, including that earmarked for the share purchase, in order to help keep the club afloat, then it would make more sense.  Either way the FOH Board has a duty to advise its members of any diversion of funds from what was expected.  

 

Edit: I can't imagine too many people being in the mood to party if we start next season in the Championship.

Edited March 26, 2020 by Footballfirst

[rocketman19]

Should there not have been a vote by foh members on this ?

[Thomaso]

Nice to know the fans are still pumping in the money - well

somebody has to pay Levein’s wages!

[davemclaren]

1 minute ago, Cruickshank for Scotland said:

Nice to know the fans are still pumping in the money - well

somebody has to pay Levein’s wages!

Half wages. 😎

[Geoff Kilpatrick]

7 minutes ago, Footballfirst said:

FOH is due to publish their latest 6 monthly newsletter/blog by the end of the month (unless they have decided to create an FOH annual instead).   Perhaps they will explain in more detail what has happened to funds collected since the Bidco loan was repaid in full at the end of January, together with the outstanding governance issues.

 

Delaying the transfer so that we can have a party doesn't seem to be a strong reason for holding off for an indeterminate period.  If however, the club has asked that FOH hands over any cash raised, including that earmarked for the share purchase, in order to help keep the club afloat, then it would make more sense.  Either way the FOH Board has a duty to advise its members of any diversion of funds from what was expected.  

 

Edit: I can't imagine too many people being in the mood to party if we start next season in the Championship.

Indeed. I tweeted them for a response but I doubt there will be a reply.

[Thomaso]

Just now, davemclaren said:

Half wages. 😎

and straight down the drain! Still paying him for total failure.

[Footballfirst]

The EEN take on the email

 

https://www.edinburghnews.scotsman.com/sport/football/hearts/foundation-hearts-divert-all-cash-tynecastle-club-ownership-transfer-delayed-2518817

[Francis Albert]

1 hour ago, Haringshairband said:

You bash on and cancel your DD for the slightest delay. I'd say that was quite weak.

 

Also I'm happier with Budge running the club financially just now while there's no football.

"Slightest delay"? Nothing in the statement suggests the transfer will happen any time soon.

Ann will still be running  the club financially and in every other way after the transfer of shares. 

Now waiting for her postponing Craig's departure to avoid disruption!

I think it is a nonsense decision and statement Everything must be in place already for the share transfer,

As for not being able to celebrate … I think most would welcome something to celebrate.

[Footballfirst]

The last two figures on total contributions (the amount handed over to the club is around 3% less after FOH admin costs), were £9,767,502 at the end of January and £10,002,385 today.

 

That is £234,883 pledged over the last two months which remains an incredible figure.

[Thomaso]

22 minutes ago, Selkirkhmfc1874 said:

Should there not have been a vote by foh members on this ?

Maybe but if there is desperate need for working capital to keep the Club afloat then there may not have been time for that.

Survival of out Club takes precedence in these crazy times! 

[Romulus]

5 minutes ago, Footballfirst said:

The last two figures on total contributions (the amount handed over to the club is around 3% less after FOH admin costs), were £9,767,502 at the end of January and £10,002,385 today.

 

That is £234,883 pledged over the last two months which remains an incredible figure.

Out of interest is there a breakdown anywhere of where this has been used? I suspect not and has been absorbed into other payments etc but just interested to know. 

[davemclaren]

16 minutes ago, weehammy said:

Quite possibly. But has FOH actually advised us what is intended? What was the post-repayment plan before the current crisis?

Used as general funds to the club. 

[rocketman19]

10 minutes ago, Cruickshank for Scotland said:

Maybe but if there is desperate need for working capital to keep the Club afloat then there may not have been time for that.

Survival of out Club takes precedence in these crazy times! 

Yeah I agree club survival priority but I grudge our monthly pledges paying the wages of the dross we've been watching on the pitch every week aswell as the recruitment team who put them there 

[davemclaren]

Just now, Selkirkhmfc1874 said:

Yeah I agree club survival priority but I grudge our monthly pledges paying the wages of the dross we've been watching on the pitch every week aswell as the recruitment team who put them there 

What would you suggest as an alternative?

[davemclaren]

1 minute ago, weehammy said:

Yes, I see Stuart Wallace has informed the EEN of this but it’s not mentioned in his email to pledgers.

Indeed. 

[rocketman19]

1 minute ago, davemclaren said:

What would you suggest as an alternative?

Unfortunately there is no alternative but at least if they went ahead with the share transfer the supporters would have what was promised in the timeline promised 

[kila]

I am happy for this to be delayed if it means monthly pledges are used to keep the club afloat. After all, we want to 'buy' a club that exists, not one that is halfway down the drain.

 

I agree with Geoff that the communication is pretty poor over all and more clarity is needed.

 

 

[EH23-Jambo]

Anyone know the rough figure FoH will be transferring to the club each month?

Edit - seen above it will be roughly £115k per month 👏🏻

Edited March 26, 2020 by EH22-Jambo

[Jamhammer]

1 hour ago, Haringshairband said:

They don't want it to go ahead just now as it is supposed to be a momentous occasion in which we can celebrate and congratulate ourselves. It would be a bit shit if it happened under the radar.

This 100%. But bitchers gonna bitch. To be honest on my list of things I want to happen in the next month or so this is pretty low on my list

[kila]

Should get the players to upload videos of themselves training in the FoH tribute strip. How many clubs in the world have this level of support from the fans given the current crisis?

 

 

 

[Don DaniEL]

15 minutes ago, kila said:

After all, we want to 'buy' a club that exists, not one that is halfway down the drain.

Excellent point. Missed by some on here.  

[Haringshairband]

1 hour ago, Francis Albert said:

"Slightest delay"? Nothing in the statement suggests the transfer will happen any time soon.

Ann will still be running  the club financially and in every other way after the transfer of shares. 

Now waiting for her postponing Craig's departure to avoid disruption!

I think it is a nonsense decision and statement Everything must be in place already for the share transfer,

As for not being able to celebrate … I think most would welcome something to celebrate.

You would see the negative side of things. I may have not been posting on this forum for long but every time I see your name I know it's going to be a negative comment. 

[Footballfirst]

1 hour ago, Mort said:

Out of interest is there a breakdown anywhere of where this has been used? I suspect not and has been absorbed into other payments etc but just interested to know. 

 

£1m up front on exiting admin in May 2014 - paid football creditors and Bidco's professional fees

£3.05m working capital (to stabilise the club's finances)

£3m contribution to the stadium redevelopment

£2.4m repayment of Bidco loan

 

FOH uses just under 3% to meet it own costs, including Gocardless fees, accounts etc, so circa £280k

 

I suspect that the £100k earmarked for the final share purchase (in Feb 2020) hasn't been paid to Bidco, but has gone to the club as additional working capital as has funds pledged this month.

[davemclaren]

18 minutes ago, Footballfirst said:

 

£1m up front on exiting admin in May 2014 - paid football creditors and Bidco's professional fees

£3.05m working capital (to stabilise the club's finances)

£3m contribution to the stadium redevelopment

£2.4m repayment of Bidco loan

 

FOH uses just under 3% to meet it own costs, including Gocardless fees, accounts etc, so circa £280k

 

I suspect that the £100k earmarked for the final share purchase (in Feb 2020) hasn't been paid to Bidco, but has gone to the club as additional working capital as has funds pledged this month.

I asume the original agreement allows indefinite deferral of the sale completion?

[Footballfirst]

1 minute ago, davemclaren said:

I asume the original agreement allows indefinite deferral of the sale completion?

Yes. I was quite surprised that there was no reference to the timing of the share payment in the funding agreement.

 

You would have thought that there would have been a commitment from FOH to continue with their 95% funds transfer until the shares were paid for, but only the repayment of the £2.4m loan carried that requirement.

 

FOH could've if they wished just hung onto the cash. They can also retain more than 5% of pledges for internal use.

[Adam_the_legend]

2 hours ago, Francis Albert said:

"Slightest delay"? Nothing in the statement suggests the transfer will happen any time soon.

Ann will still be running  the club financially and in every other way after the transfer of shares. 

Now waiting for her postponing Craig's departure to avoid disruption!

I think it is a nonsense decision and statement Everything must be in place already for the share transfer,

As for not being able to celebrate … I think most would welcome something to celebrate.

Guaranteed 🙄

[brux]

3 hours ago, Geoff Kilpatrick said:

Absolutely pathetic. Will be considering cancelling after this. There is no reason at all that this cannot go ahead.

 

Edit: Is the £100K share purchase cost being held in escrow or has it been used for something else? Undoubtedly we will hear nothing about that either.

Wow, what world do you live in? Every other person lives in this virus ravaged unstable one where transferring shares at this point is just not important.

 

Cool your jets, I'm sure there are much more important things you can lose your shit over that are worthy of you losing your shit!

[grumpyespana]

3 hours ago, Cruickshank for Scotland said:

Nice to know the fans are still pumping in the money - well

somebody has to pay Levein’s wages!

Can we not give this Levein nonsense a rest guys he is ancient news we should be looking to the future please.

[Francis Albert]

13 minutes ago, grumpyespana said:

Can we not give this Levein nonsense a rest guys he is ancient news we should be looking to the future please.

He should be ancient news. But isn't.

[davemclaren]

44 minutes ago, Francis Albert said:

He should be ancient news. But isn't.

His contract should be up soon so hopefully he is ancient news after that. 😄

[Don DaniEL]

9 minutes ago, davemclaren said:

His contract should be up soon so hopefully he is ancient news after that. 😄

I’m surprised he hasn’t voluntarily cancelled his contract with the Club. It would go a long way in regaining some of the love he has lost from a lot of the fan base. I’d imagine it would only be a few thousand he’d lose out on. He could then write a book explain his philosophy and reasoning behind his failure over the last couple of years. His opening chapter will no doubt be titled Why was I so stubborn!  I’m sure it would be a great stocking filler! 

[OTT]

15 minutes ago, Dannie Boy said:

I’m surprised he hasn’t voluntarily cancelled his contract with the Club. It would go a long way in regaining some of the love he has lost from a lot of the fan base. I’d imagine it would only be a few thousand he’d lose out on. He could then write a book explain his philosophy and reasoning behind his failure over the last couple of years. His opening chapter will no doubt be titled Why was I so stubborn!  I’m sure it would be a great stocking filler! 

 

Exactly this. 

 

****ing leech. Hopefully won't be forgotten either. 

[Hungry hippo]

Fully support the delay.

[Thomaso]

5 hours ago, Selkirkhmfc1874 said:

Yeah I agree club survival priority but I grudge our monthly pledges paying the wages of the dross we've been watching on the pitch every week aswell as the recruitment team who put them there 

I also pay grudgingly - but I do it none the less.

[Thomaso]

3 hours ago, grumpyespana said:

Can we not give this Levein nonsense a rest guys he is ancient news we should be looking to the future please.

I’m afraid he is not ancient news - he is still taking a wage out of Hearts!!

[jr ewing]

41 minutes ago, Cruickshank for Scotland said:

I’m afraid he is not ancient news - he is still taking a wage out of Hearts!!

His stubbornness got him where he is in the first place. 

[Beast Boy]

Pledge now upped. Felt good. 👍