Hibee Chairman blasts Straiton Critics
Lewandowski makes a rare public statement

EVEN AFTER A YEAR IN THE JOB Ken Lewandowski can perhaps have little complaint if Hibernian fans were to say 'Ken Who?' yesterday when the club released a statement from the Hibernian chairman.  In the months since taking over the post from Malcolm MacPherson, Lewandowski can hardly be said to have held a high profile as the club have gone through what has been a very troubled period.  That perhaps changed yesterday afternoon, as the Straiton proposal appeared to have flushed the Hibs chairman from his slumber with what can only be described as a fiery broadside at those who have criticised the proposal, Sir Tom Farmer, Rod Petrie and anyone else who has spoken out against the moves be that on financial or emotive grounds.

The media response to the news over the last ten days has been, well remarkable!  The 'quality' press in particular appear to have gone for the emotive arguments against moving from Easter Road, with several attacks on the Easter Road board for their handling of the matter and indeed their handling of the club in general in recent years.  To be fair to these journalists, they have appeared to reflect the general mood of the Hibernian fans themselves, who if the lively debates on the Hibs.net message board are anything to go by are very much confused and bemused over several questions that they hope, but do not expect, will be answered in the coming months before any final decision is taken.  The job Hibernian have on their hands in convincing their customers that these proposals are good and healthy for the future of Hibernian is one that simply cannot be understated, it is massive.  For all the good will that may exist within the support, for all those that are willing to listen to the arguments, there are many more who simply don't believe what they are being told, no matter how often they are being told.

So repeating the same message over and over is not going to work it seems - Hibernian (and Hearts) will have to come up with a very convincing set of facts and figures if they are to retain or recapture any credibility with their fan base.  In his statement yesterday Lewandowski has perhaps understood that with quite possibly the most frank 'exchange of words' yet heard from Easter Road.  Describing the criticism of the Easter Road board in recent weeks as 'unfair', Lewandowski called on all Hibernian fans to keep an open mind over the Straiton proposal, saying: "It is the duty of the Board to examine any proposal that might deliver real and tangible benefits to the Football Club. If we didn't do that, we would be failing in our job as Directors.  That is precisely why we are looking, in detail, at an opportunity that has arisen to pursue an option to ground-share. We are seeking detailed information on how it would benefit the Club, we are canvassing the views of our supporters and shareholders, and once the situation is clearer we will come to a decision taking every factor into account.

Rod Petrie - support from the chairman who blasts the board critics (sns)

 

"Our Club is at a crossroads, and it is important that every supporter recognises that. During the past ten years the Club has had to make up for decades of non-investment in the stadium to create acceptable facilities and to meet legal safety requirements. We have invested heavily to do that only to see revenues, especially significant TV revenues, collapse. This has been outwith our control, and indeed is a global phenomenon that no-one foresaw. This has an obvious effect on our ability to deal with the debts incurred in redeveloping the stadium.  In addition, the collapse in revenues has seen operating losses add to our debt burden in recent years. That debt, adding losses incurred in the current financial year, is likely to be in the region of £16-17 million."

The debt figures quoted by the Chairman will likely add fuel to the debate, as it does appear to vary from those provided by Rod Petrie over the last week with quotes of a total debt of £14m having been indicated.  The level of the club debt and the ability to reduce that debt while still providing an entertaining product on the field is the problem facing Hibernian as it does all clubs in the SPL.  Hibs have had the 'buffer' perhaps of a very rich owner in the background, bailing the club out where required with cash injections although it should be noted that such injections have in effect only added to the debt, coming as they have done in the form of further loans to the football club and as such adding to the interest burden on Hibs.  In what many might regard as a warning that Sir Tom is not prepared to keep making these loans, Lewandowski said: "At this moment in time the Club can only continue to operate with the support of Sir Tom Farmer, who has funded the operating losses. But I said on taking up the position as Chairman that this was a situation that could not be allowed to continue unchecked, and I echoed the sentiments of previous chairmen that we have to move our Club towards breaking even if the Club is to have a secure future and a prospect of real progress on the football pitch. We are privileged to have Sir Tom's ongoing support, but no-one can honestly believe that relying on the generosity of one individual is the best course of action for the long-term welfare of the Club.

"The time has come to tackle this issue in a meaningful way, and to reduce our burden of debt. We have considerably reduced the cost base in the Club over the past 9-12 months and the Board are examining a number of options to further reduce the debt. We need to consider all options that allow us to move forward and build real progress as a football club."  The main point raised by those who have attacked the Hibs board has been the very point they themselves have raised, the fact that Hibernian, unlike Hearts, do not need to leave their spiritual home.  If that is the case, then why is it even being considered?  Clearly for financial reasons, but for the financial argument to work it must massively override the one that has a far tighter grip on Hibernian fans, the traditions of the club and indeed the very traditions of football itself.  Before Straiton, the Hibs board had made much of the parcel of land alongside the stadium owned by Hibernian Holdings, pointing out that they wished to sell this land and thus reduce the debt of both club and holding company.  The way that story was originally presented painted a very bright picture, with the land value hoped to be around £10m.  While the club themselves were always careful not to give out such figures, they nevertheless did nothing at the time to rubbish them either.

Happier days for John O'Neil (sns)

Now however the attitude appears very different over that land, with Lewandowski saying: "Many fans and media pundits have raised the issue of the sale of the former car park, and the funds it will raise. Some maintain that sale will be sufficient. Let me try to clear this up.  The car park is not yet sold, so we cannot be sure how much will be realised, but it is unlikely that it will achieve the £10 million figure being speculated upon in the media. Once associated costs, such as professional fees and tax, are removed, the figure will be further reduced.  The monies which are gained will be used to reduce debts incurred by the football club both in the holding company - which owns the car park - and the club itself. However we are still likely to be left with significant debt, perhaps around £10 million."  Experts in the field of Edinburgh land values have also been ready to point out this week that the land value itself would be greatly affected by the existence of the football stadium - no stadium would greatly increase the value of that land.

The good news for Hibs fans came in a clear statement from Lewandowski that the club, while seeking the drastic changes that Straiton would bring, was nowhere close to being placed in administration, saying: "The Club is not about to plunge into administration, but we do need to tackle our debt problem. There are a number of options before us, and our job is to look at them - all of them - very seriously.  That process is underway, and we will bring forward sensible, reliable information as and when we have it. We have committed to sharing that information with our supporters, and to communicating with them in a structured way.  We have no intention of signing anything away 'for a quick buck' as one commentator put it. What we are concerned with is seeking an advantageous way forward for the Club that ensures its long-term financial stability, rather than seeking always to rely on the support of Sir Tom. Some, unbelievably, seek to castigate the man without whose ongoing support the Club's position would be very much worse and indeed our very existence could be under threat. No-one else has been prepared to fund operating losses caused by the collapse in revenues."

Lewandowski also joined Rod Petrie and Chris Robinson in reassuring fans worried that any ground-sharing exercise would lead to a full merger somewhere down the road, "Some have sought to raise the spectre of merger. It isn't going to happen. It isn't on anyone's agenda. No-one has an appetite to merge the two clubs and I believe it very unlikely that anyone would ever develop that appetite. Financial vitality is surely the best defence against any need to merge."  Fine words of course designed to reassure, however many fans will point out that the very thought of Hibs even sharing a stadium was equally unthinkable ten years ago, making it very difficult therefore to fully allay such fears.  The Easter Road chairman though saved his most telling words for the end of this remarkably frank statement, when he turned on those who had been highly critical of the Easter Road board and Sir Tom Farmer.  He said: "Finally, and this is on a personal note, let me add this. It is easy to sit on the sidelines and be critical, even to question the integrity and competence of others, without being fully aware of the facts - and in this case the full facts are still to emerge as the work goes on. Sometimes we do have to face into, or at least look into, the viability of a course of action that we may have a reluctance about, but we know is necessary. And we need to look at ways to take our Club forward. That is all we are doing. We all love our Club and we all love the game of football. It is unfair to suggest that Directors are motivated by anything else."

Information from Easter Road is now expected to slow down over the coming weeks, as everyone gathers together their own thoughts and the promised consultation process is put into place.  It might be a time for reflection not only in the Easter Road boardroom, but by the Hibs fans themselves.  Not known for their patience, this is one situation where patience will clearly need to be exercised.

Back on the field of play, John O'Neil appears to have finally accepted that he will not play for the club again.  O'Neil will meet with boss Bobby Williamson when the club return to pre-season training on Monday, and hopes to thrash out a financial package that will see him break completely from Easter Road, with one of his former clubs, St Johnstone, now emerging as favourites for his signature.  O'Neil said: "I will return to training next week and hopefully we can now get something sorted out.  It has been made clear to me from the club that, 100 per cent, my future is no longer there and that I will not play again. I have had to forego my appearance money and I am not looking to make money on a settlement. However, the basic wage was in the contract I signed and if I have to take a huge cut on my basic, I will not be moving. Hopefully something can be concluded before the start of the season."