Hearts make a profit, 1st time since '99

[hawaii]

Thanks Gibbo.

 

However, does not fit with the rumoured figures on debts which were leaked/appeared on here last week.

 

Another question though ... why does UBIG need Hearts to go just into the black?

 

 

Heard of the new Uefa rules?

[Coco]

Heard of the new Uefa rules?

 

And which year do they start to apply from?

 

Last year? Don't think so.

[The Merse]

Just a thought but if we're running at a loss of ?7m +, the ?10m DFE swap of last year is likely to be swallowed up in that and the debt will only go down around ?3m?

 

So ?22m worth of DFE swaps, the ?7m + "investment" this year along with unprecedented transfer fees received for players and we're still going to be ?30m + in debt.

 

That is frightening.

[Gibbo]

The UEFA rules start from the 2011-12 financial reporting period. They require clubs to break even over 3 years in their own right, i.e. without subsidies from owners. There is an interim period in which some losses are allowed. The key criteria is the profit, not the debt. A club, such as Man. Utd, that has a large debt but makes a profit greater than its interest bill is fine. One making losses that are coming out of the owner's pocket, such as Man. City, is not.

[Clerry Jambo]

Just a thought but if we're running at a loss of ?7m +, the ?10m DFE swap of last year is likely to be swallowed up in that and the debt will only go down around ?3m?

 

So ?22m worth of DFE swaps, the ?7m + "investment" this year along with unprecedented transfer fees received for players and we're still going to be ?30m + in debt.

 

That is frightening.

 

That's an understatement Merse

[Dinger]

profit is profit at the end of day. It's great news.

[hawaii]

And which year do they start to apply from?

 

Last year? Don't think so.

 

 

It is taken over a long period of time, which is why Man City are sweating bullets about it. If the club continues to make losses year on year then they will be refused entry. Hearts have been making losses year on year, so I'd guess a wee profit last year will help us with the new Uefa rules, or at the least give us some breathing room.

[Coco]

It is taken over a long period of time, which is why Man City are sweating bullets about it. If the club continues to make losses year on year then they will be refused entry. Hearts have been making losses year on year, so I'd guess a wee profit last year will help us with the new Uefa rules, or at the least give us some breathing room.

 

As Gibbo has pointed out - these figures have nothing to do with the new UEFA rules as last year's loss would have no impact on the calculations.

 

If it is a 'debt forgiveness' situation then it is possible that it would make a minor difference to the ongoing losses with regard to the interest payments in future when these rules do start to bite.

 

However, it is not interest payments which are the major factor in the ongoing enormous losses at the club - it is a wage bill which is at least twice and perhaps even 3 times a sustainable level.

[Dazo]

Just a thought but if we're running at a loss of ?7m +, the ?10m DFE swap of last year is likely to be swallowed up in that and the debt will only go down around ?3m?

 

So ?22m worth of DFE swaps, the ?7m + "investment" this year along with unprecedented transfer fees received for players and we're still going to be ?30m + in debt.

 

That is frightening.

 

 

Interesting thought but completely wrong. The debt won't be ?30m+ after the latest DFE.

[Balders]

The way I read it is that the UEFA Financial Fair Play comes into existence in 2012 but is assesed over a rolling 3 year period. So in 2012 that would cover 09/10, 10/11 and 11/12. This is perhaps why we are intent on making a profit for 09/10. Over time though owners subsidies will not be allowed and clubs will have to rely on their own revenue to make a profit.

[The Merse]

Interesting thought but completely wrong. The debt won't be ?30m+ after the latest DFE.

 

And you know this how?

 

Without another investment to cover the losses for this year, then we'll still be running at a major loss.

[Coco]

The way I read it is that the UEFA Financial Fair Play comes into existence in 2012 but is assesed over a rolling 3 year period. So in 2012 that would cover 09/10, 10/11 and 11/12. This is perhaps why we are intent on making a profit for 09/10. Over time though owners subsidies will not be allowed and clubs will have to rely on their own revenue to make a profit.

 

I read this piece which says 2015 is the crucial year:

http://news.bbc.co.uk/sport1/hi/football/8546561.stm

 

Apologies to above posters if I have it wrong.

[rudi must stay]

Good news. Shows we can be succesful on and off the pitch, if you buy players who are here for the right reasons.

[TheBigO]

The UEFA rules start from the 2011-12 financial reporting period. They require clubs to break even over 3 years in their own right, i.e. without subsidies from owners. There is an interim period in which some losses are allowed. The key criteria is the profit, not the debt. A club, such as Man. Utd, that has a large debt but makes a profit greater than its interest bill is fine. One making losses that are coming out of the owner's pocket, such as Man. City, is not.

 

Are we not in the Man City bracket? Would that ?7.9M not come under the handout from the owner bracket, or is it where it goes in the accounts that matters? If so, that seems a bit easy... Sorry for questions, just not too clever with this stuff but certainly interested.

 

I;m guessing Mikey Stewart, Jose, Larry and Nade were probably on something like ?35K pw between them, so that's near enough ?2M less a year straight away. So now we're on a ?5M pa loss(very ish). Plus now back in Europe, hopefully Wonga money, Bouzid will be away as will Pala, both of whom on decent dosh. I think general squad will be trimmed this summer too. Outgoings are defiinitely on the way down.

 

I guess each year the interst we pay is reducing which is a major factor too.

 

In a way, we as fans maybe know too much about this stuff! VR seems pretty happy. He's loaded and we're a bit of a pet project. I think if it weren't for partners of his, he'd be spending more on us which wouldn't necessarily be a good thing right enough! He seems to be taking better advice on the operating side of things and just hopefully he takes JJs advice on the squad side of things cos that'd save us a bomb. I'm kinda happy enough to let the money men be the money men though and leave my criticising to the football side.

[Gibbo]

The UEFA financial rules begin to be assessed from 2011-12, but don't affect European qualification until 2013-14. For that season, clubs will be assessed on their P&L for the last two years, i.e. 2011-12 and 2013-14. Thereafter, three years of financial figures will be used. See UEFA's website.

 

According to the Guardian, losses of up to ?45m will be allowed in the period 2012-15 and of up to ?30m in 2015-18.

 

My understanding of the rules is that debt write offs or debt for equity swaps aren't allowed. Clubs must have costs no greater than their revenue over a three year period, except that some losses are allowed in an interim period. There is an exception for stadium redevelopment costs.

[From Perth to Paisley]

With all the stuff that's been going on recently I have been rereading the Swiss Ramble blog and had another look at our 2010 accounts.

 

According to the accounts the ?23.4 debt is due to be repaid at the end of December this year with another 8.3 million due in August next year.

 

Can anybody explain what happens with this?

[I.T.K]

With all the stuff that's been going on recently I have been rereading the Swiss Ramble blog and had another look at our 2010 accounts.

 

According to the accounts the ?23.4 debt is due to be repaid at the end of December this year with another 8.3 million due in August next year.

 

Can anybody explain what happens with this?

 

I assume it would be refinanced.