Ann Budge Statement

[Hearts007]

Just now, soonbe110 said:

Never mind club, what business has that kind of dosh. 

McCrae ltd.maybe?

[Geoff Kilpatrick]

Very good statement. Even Kris Boyd might understand it.

[Diadora Van Basten]

I am glad that Ann has come out and clarified our financial position. The measures we are taking are just a sensible reaction to the loss of income that the club are experiencing.

[Bunny Munro]

I'm going to assume McCrae is on the wind up. The alternative is that they're a moron.

 

Simply, using easy numbers, if the club makes £100,000 a month, and our costs are £70,000 we are not spending out with our means. That's because the second number is smaller and the first number is bigger.

 

You cannot run a business expecting to have no income for 6 months, that is ludicrous. Hearts will have budgeted season tickets, new strips, and a number of home games for income. 

[McCrae]

6 minutes ago, soonbe110 said:

Never mind club, what business has that kind of dosh. 

Other clubs in Scotland are doing and have done much better than us despite having a playing budget a fraction of ours. It proves that in our league you can do relatively well on a much lower player budget. We don’t need to spend all the money we bring in each year. Even if you halved our playing budget it would still be a lot more than most clubs. We could build up a decent cash reserve over a couple of years.

Edited March 26 by McCrae

[Mikey1874]

1 minute ago, Diadora Van Basten said:

I am glad that Ann has come out and clarified our financial position. The measures we are taking are just a sensible reaction to the loss of income that the club are experiencing.

 

The big other news was the players are working with the club. The Sun suggested a big conflict. 

[soonbe110]

15 minutes ago, McCrae said:

Celtic?

Last accounts showed Op Expenses at £86m, net cash at £28m and that was only at that level because of an £11m gain on player registrations ie transfers. So typically they run at between 2 and 4 months. Sounds eerily like another club that said that earlier today. Who was that? 

[Seymour M Hersh]

3 hours ago, colinmaroon said:

 

 

I think he's an anus.

 

 

 

Ftfy Colin

[Mikey1874]

1 minute ago, McCrae said:

Other clubs in Scotland are doing and have done much better than us despite having a playing budget a fraction of ours. It proves that in our league you can do relatively well on a much lower player budget. We don’t need to spend all the money we bring in each year.

 

Where is your evidence.

 

You going by what Hibs, Motherwell and Aberdeen say. But not Hearts. 

[Saughton Jambo]

Great statement from AB and also shedding some light on the leaked email from JM. She’s a pioneer and is streets ahead of the other clubs. This is a kick in the nutz to all the journos that are dying to see us relegated. If I was AB, I’d personally ban the rag that calls itself the sun and the daily ranger. Great to see her sticking up for the club and with being at the vanguard of covid related football politics. I hope she stays for a few more years yet! Well done Ann

[Special Officer Doofy]

1 hour ago, Jambo-Fox said:

Queen Ann regally ruling! Well done!

Send her victorious.

[Special Officer Doofy]

4 minutes ago, soonbe110 said:

Last accounts showed Op Expenses at £86m, net cash at £28m and that was only at that level because of an £11m gain on player registrations ie transfers. So typically they run at between 2 and 4 months. Sounds eerily like another club that said that earlier today. Who was that? 

[Cruyff]

Just now, Diadora Van Basten said:

I am glad that Ann has come out and clarified our financial position. The measures we are taking are just a sensible reaction to the loss of income that the club are experiencing.

Indeed. 

 

During the summer, players get paid without any income to the club. That's the pot we are into now and if we don't resume in the summer, we're basically paying two summers worth of wages without any income. 

 

It costs us £1.2m minimum a month to run Hearts. So we need to make the projections of how much we will have left in 2-3months without football. 

 

4months at this rate and we're losing close to £5million quid. 

[Francis Albert]

6 minutes ago, Mikey1874 said:

 

Where is your evidence.

 

You going by what Hibs, Motherwell and Aberdeen say. But not Hearts. 

The league table?

[Geoff Kilpatrick]

8 minutes ago, soonbe110 said:

Last accounts showed Op Expenses at £86m, net cash at £28m and that was only at that level because of an £11m gain on player registrations ie transfers. So typically they run at between 2 and 4 months. Sounds eerily like another club that said that earlier today. Who was that? 

Correct. 

[corryjambo]

44 minutes ago, McCrae said:

If we want stability, which I thought we were trying to do, it should be at least 12 months.  We are not a rich club, and clearly money is tight. Otherwise any unexpected thing could potentially force us into Administration again.

 

I take it you have never run a company of any size. I would imagine that there are very few businesses of any size worldwide that keep 12 months in cash  reserves.

 

The business that I did run was delighted to have 3 months in reserve, but strangely enough we never budgeted for a corona virus coming along and destroying our income stream for an undetermined period.

[GorgieFifeLife]

5 hours ago, Agentjambo said:

Why is john murray stating we will have money for transfers if we havent?

He didn't.  He said funds MAY be available if we sell players over the coming months.  It would be negligent to not consider paying a fee for a player in the future if we have funds at that point from player sales.

[Last Laff]

23 minutes ago, Mikey1874 said:

 

They've said it's under review re Monday and Tuesday shows. Good that Ann has given them something to talk about. 

This is Thursday and there’s no football on at all.  

[soonbe110]

29 minutes ago, McCrae said:

Other clubs in Scotland are doing and have done much better than us despite having a playing budget a fraction of ours. It proves that in our league you can do relatively well on a much lower player budget. We don’t need to spend all the money we bring in each year. Even if you halved our playing budget it would still be a lot more than most clubs. We could build up a decent cash reserve over a couple of years.

Changing the subject now that you are losing the argument? 

[Sir Gio]

36 minutes ago, Geoff Kilpatrick said:

Very good statement. Even Kris Boyd might understand it.

Behave, wasnt written on an etch a sketch 

[HoGwash]

46 minutes ago, Geoff Kilpatrick said:

Very good statement. Even Kris Boyd might understand it.

I doubt Kris Boyd has ever managed to read anything that long without pictures in his life.

 

I look forward to his expert analysis on it though.

[TheBigO]

 

 

 

The likes of McManus and Boyd won't read this in its entirity. They'll skim the headlines and then be given column inches in rebuttle.

 

And I guess that's Ann's point. Ill informed pundits get too much air in Scotland and then all the mouthbreathers, including our own, jump on their bile and it surely becomes fact.

 

There are decent journos up here who cover our game, bring us news, who have good relationships with our clubs and are good at digging around in football rumour.

 

Those paid to give opinion are almost exclusively a joke. Only English springs to mind as worth paper. Of the ex player brigade, well, no-one we hear from regularly. Didn't mind Pat Nevin, and pains me to say it, but Strachan at least tends not to tow the line and occasionally nails it.

 

Edited March 26 by TheBigO

[JimmyCant]

40 minutes ago, Saughton Jambo said:

Great statement from AB and also shedding some light on the leaked email from JM. She’s a pioneer and is streets ahead of the other clubs. This is a kick in the nutz to all the journos that are dying to see us relegated. If I was AB, I’d personally ban the rag that calls itself the sun and the daily ranger. Great to see her sticking up for the club and with being at the vanguard of covid related football politics. I hope she stays for a few more years yet! Well done Ann

I’m not really that bothered about the GURUY slant to the statement. We’ve been an easy target For the media as a club since the start of the Romanov years and quite frankly, we have often fed that frenzy.   Take that part out and the statement is a factual open statement about where we are, what we’ve done about it, and the somewhat worrying consequences of it going on too long. Any business with no income, little cash reserves and servicing huge overheads for 6 months is sailing through a stormy sea at best and sinking with a hole below the plimsoll line at worst. Take out the petty dig at the press and I don’t know how anyone can be re-assured by what she’s said. 

[Beave1874]

7 minutes ago, TheBigO said:

 

 

 

The likes of McManus and Boyd won't read this in its entirity. They'll skim the headlines and then be given column inches in rebuttle.

 

And I guess that's Ann's point. Ill informed pundits get too much air in Scotland and then all the mouthbreathers, including our own, jump on their bile and it surely becomes fact.

 

There are decent journos up here who cover our game, bring us news, who have good relationships with our clubs and are good at digging around in football rumour.

 

Those paid to give opinion are almost exclusively a joke. Only English springs to mind as worth paper. Of the ex player brigade, well, no-one we hear from regularly. Didn't mind Pat Nevin, and pains me to say it, but Strachan at least tends not to tow the line and occasionally nails it.

 

Excellent post. My thoughts pretty much. I like Tom English as does not tend to toe the party line too much with the Glasgow Monkeys. 

[Holyrood_Hearts]

Well said AB! Great statement some of the simpletons who work in our media should understand 

[soonbe110]

3 minutes ago, JimmyCant said:

I’m not really that bothered about the GURUY slant to the statement. We’ve been an easy target For the media as a club since the start of the Romanov years and quite frankly, we have often fed that frenzy.   Take that part out and the statement is a factual open statement about where we are, what we’ve done about it, and the somewhat worrying consequences of it going on too long. Any business with no income, little cash reserves and servicing huge overheads for 6 months is sailing through a stormy sea at best and sinking with a hole below the plimsoll line at worst. Take out the petty dig at the press and I don’t know how anyone can be re-assured by what she’s said. 

Re-assurance comes from - 

she identified the risk and acted quickly

we have no external debt

players and staff understand the situation and are generally buying in to it

they are pursuing all the possible govt schemes for funding

she is being realistic re timescales

she plans to put season tickets on sale as soon as possible
 

What else would you have done in her situation?  What other re-assurance would you like? 

[Jamboelite]

So to clarify, we should have £15m in the bank just incase there is a global pandemic.
 

We should do this by halving our operating costs and fans would accept that we could buy players, as we have the cash, but we choose not to just incase.

 

We shouldnt have any vanity projects, even though one of those example was funded elsewhere.

 

We should be in a better position financially because of the FOH money, even though every penny upto now went to the loan(and stand) so in fact the club hasnt used that operationally.

 

Its all Leveins fault.

 

And the statement should cover off what we are doing beyond six months.

 

JKB doing what it does best.....looking for the shit in everything.

 

 

Edited March 26 by Jamboelite

[gowestjambo]

Seems to me a lot of people are happy we are sticking it to a couple of crappy pundits by way of Ann Budge's statement.

 

Conveniently forgetting we are bottom of the League with a team full of duds on lengthy contracts which have cost us millions.

 

I know which is more important to me.

[Holyrood_Hearts]

11 minutes ago, TheBigO said:

 

 

 

The likes of McManus and Boyd won't read this in its entirity. They'll skim the headlines and then be given column inches in rebuttle.

 

And I guess that's Ann's point. Ill informed pundits get too much air in Scotland and then all the mouthbreathers, including our own, jump on their bile and it surely becomes fact.

 

There are decent journos up here who cover our game, bring us news, who have good relationships with our clubs and are good at digging around in football rumour.

 

Those paid to give opinion are almost exclusively a joke. Only English springs to mind as worth paper. Of the ex player brigade, well, no-one we hear from regularly. Didn't mind Pat Nevin, and pains me to say it, but Strachan at least tends not to tow the line and occasionally nails it.

 

Completely agree with most of your point, especially on Tom English. Pat Nevin is an embarrassment tho. He does a podcast (Totally Football Show) & every single time he’s on he’s all over John McGinn it’s cringeworthy. Last time he said he “just loves the kid” 🤦🏼‍♂️

[McCrae]

29 minutes ago, soonbe110 said:

Changing the subject now that you are losing the argument? 

 

Not at all. You haven’t followed the thread. 
 

In summary.
 

We are spending too much, we will always be a risk of failure unless we can build up our cash reserves. We should be able to do this and still do well in the Scottish league. 

[stevie1874]

1 hour ago, McCrae said:

Celtic?

I doubt Celtic have 12 months money, the monthly wage bill is massive at Celtic

[Jamboelite]

3 minutes ago, gowestjambo said:

Seems to me a lot of people are happy we are sticking it to a couple of crappy pundits by way of Ann Budge's statement.

 

Conveniently forgetting we are bottom of the League with a team full of duds on lengthy contracts which have cost us millions.

 

I know which is more important to me.

No i think people are happy for the clarity of our current financial position.

 

I dont have to forget the shit performances but the immediate priority is getting through this.

[Geoff Kilpatrick]

4 minutes ago, gowestjambo said:

Seems to me a lot of people are happy we are sticking it to a couple of crappy pundits by way of Ann Budge's statement.

 

Conveniently forgetting we are bottom of the League with a team full of duds on lengthy contracts which have cost us millions.

 

I know which is more important to me.

Except being bottom of the league has bugger all to do with the current cash flow problem.

[JimmyCant]

8 minutes ago, soonbe110 said:

Re-assurance comes from - 

she identified the risk and acted quickly

we have no external debt

players and staff understand the situation and are generally buying in to it

they are pursuing all the possible govt schemes for funding

she is being realistic re timescales

she plans to put season tickets on sale as soon as possible
 

What else would you have done in her situation?  What other re-assurance would you like? 

I’m not criticising her in the least about her actions and the statement in general and what she has done is quite correct and the best thing to do in the circumstances. But the maths of commitments vs income still work out as a huge deficit, even taking advantage of all the government schemes which won’t cover that much of the player wage bill we are committed to, even at a 50% start point. Some folk reading that statement thinking it’s all covered and we’ll be fine and dandy just aren’t reading it properly and too busy masturbating over a dig at The Sun and some unnamed no mark pundits.

Edited March 26 by JimmyCant

[Last Laff]

4 minutes ago, Holyrood_Hearts said:

Completely agree with most of your point, especially on Tom English. Pat Nevin is an embarrassment tho. He does a podcast (Totally Football Show) & every single time he’s on he’s all over John McGinn it’s cringeworthy. Last time he said he “just loves the kid” 🤦🏼‍♂️

So in general, everyone who has a point of view you disagree with or isn’t completely pro hearts is a shit pundit/journo? 

[soonbe110]

2 minutes ago, McCrae said:

 

Not at all. You haven’t followed the thread. 
 

In summary.
 

We are spending too much, we will always be a risk of failure unless we can build up our cash reserves. We should be able to do this and still do well in the Scottish league. 

Disagree. The industry we are in doesn’t do large cash reserves. Why put yourself at a financial disadvantage, a huge one at that? 
The football world doesn’t work like you suggest. Fans want clubs to buy or bring in new players no matter how the team is performing. We have been there and done it time after time over last 50 years. It’s the nature of the industry. It’s the same in England, Germany, Spain, Italy etc. 

[Jamboelite]

5 minutes ago, McCrae said:

 

Not at all. You haven’t followed the thread. 
 

In summary.
 

We are spending too much, we will always be a risk of failure unless we can build up our cash reserves. We should be able to do this and still do well in the Scottish league. 

You used Celtic as an example and yet they have a 2-4month reserve. This is a club who have Champions League money and who have only been spending  enough to win leagues.

 

What you are asking for is unrealistic in virtually every business sector.

[Nookie Bear]

7 minutes ago, Geoff Kilpatrick said:

Except being bottom of the league has bugger all to do with the current cash flow problem.

No, apart from the uncertainty of knowing which league we will be in next season. 

[soonbe110]

3 minutes ago, JimmyCant said:

I’m not criticising her in the least about her actions and the statement in general and what she has done is quite correct and the best thing to do in the circumstances. But the maths of commitments vs income still work out as a huge deficit, even taking advantage of all the government schemes which won’t cover that much of the player wage bill we are committed to, even at a 50% start point. Some folk reading that statement thinking it’s all covered and we’ll be fine and dandy just aren’t reading it properly and too busy masturbating over a dig at The Sun and some unnamed no mark pundits.

I’m not sure I have read anyone on here saying they think it’s fixed. Our chairwoman didn’t say that either. She did say she thinks they will find a way. 
Re player wage bill we should be ok. Lots of players leave at end May, if not before, so payroll after June 1 is much lower. We actually don’t have that many ‘big-earners’ despite what many on here say and if most of them agree to the 50% combined with the £2500 pm govt money there won’t be that big of a problem. Non-playing staff will mostly be covered by govt scheme without the need for them to take 50% pay cuts. We are currently saving a ton of money on day to day activities eg training costs, consumables, etc
 

[JamboAl]

1 hour ago, McCrae said:

If we want stability, which I thought we were trying to do, it should be at least 12 months.  We are not a rich club, and clearly money is tight. Otherwise any unexpected thing could potentially force us into Administration again.

Are you a Company Accountant?

[davemclaren]

22 minutes ago, gowestjambo said:

Seems to me a lot of people are happy we are sticking it to a couple of crappy pundits by way of Ann Budge's statement.

 

Conveniently forgetting we are bottom of the League with a team full of duds on lengthy contracts which have cost us millions.

 

I know which is more important to me.

At the moment the survival of the club as a business is the most important thing, for me anyway.  

[JimmyCant]

19 minutes ago, soonbe110 said:

I’m not sure I have read anyone on here saying they think it’s fixed. Our chairwoman didn’t say that either. She did say she thinks they will find a way. 
Re player wage bill we should be ok. Lots of players leave at end May, if not before, so payroll after June 1 is much lower. We actually don’t have that many ‘big-earners’ despite what many on here say and if most of them agree to the 50% combined with the £2500 pm govt money there won’t be that big of a problem. Non-playing staff will mostly be covered by govt scheme without the need for them to take 50% pay cuts. We are currently saving a ton of money on day to day activities eg training costs, consumables, etc
 

Fair enough but there are only 8 players out of contract in June. Don’t get me wrong, we’ll survive and possibly even come out stronger than a lot of clubs, partly because we’ve got a fan base that pitches in like no other club in the country has, but this will have a massive impact, even if we get full government help, which might not be as straightforward as it first appeared. Really important that we get to stay in the top league IMO

Edited March 26 by JimmyCant

[Clerry Jambo]

Wee Ron over the road had made a statement, doesn’t really say much with no figures quoted 

[Jamboelite]

Season tickets going on sale will have a benefit as well. These are funds we normally receive at this time and even if its only a few thousand renewing its more income with less outgoing.

[Hearts007]

24 minutes ago, Clerry Jambo said:

Wee Ron over the road had made a statement, doesn’t really say much with no figures quoted 

yep does say.."The loss of cash in the bank puts our club under the most severe strain and threat  and Difficult decisions will have to be made".

 

and those muppets been slagging us off as well

Edited March 26 by Hearts007

[John Findlay]

34 minutes ago, Clerry Jambo said:

Wee Ron over the road had made a statement, doesn’t really say much with no figures quoted 

They still have their heads in the sand.

[Gilberts Fridge]

9 minutes ago, Hearts007 said:

yep does say.."The loss of cash in the bank puts our club under the most severe strain and threat  and Difficult decisions will have to be made".

 

and those muppets been slagging us off as well

Code for the business is unsustainable and I can no longer provide funding and as such the only way to pay the outstanding debts is to realise the assets. 

 

Ah well, ya can always dream 

[gashauskis9]

15 minutes ago, Clerry Jambo said:

Wee Ron over the road had made a statement, doesn’t really say much with no figures quoted 

I thought both statements, ours and theirs, were spot on.  

[Hearts007]

1 minute ago, Gilberts Fridge said:

Code for the business is unsustainable and I can no longer provide funding and as such the only way to pay the outstanding debts is to realise the assets. 

 

Ah well, ya can always dream 

🙂...bbbbut where's his zillions?

[busby1985]

This situation is honestly like laughing at your neighbours house fire whilst watching the fire creep closer to your house. There is no point scoring here as far as am concerned. People’s jobs are seriously under threat and a load of people in Scottish football, on the park and off it are going to not have a job come the end of it.