Hearts’ Finances?

[The 90+2]

See they aren’t being handed over until next summer now.

[Irish_Steve]

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See they aren’t being handed over until next summer now.

With great power comes great irresponsibility

[cocteautwin]

Cash balances of £2.4m would suggest they haven't spent all the season ticket money before the season starts, but they probably have, considering they've taken in £3.7m in donations and also an extra loan from Budge via Bidco of £1.2m, so that's £5m in extra cash they've needed this year.

Cash balances are also boosted by them deferring PAYE of around £850k compared to last year and they also haven't paid their legal fees of £646k, so there's £1.5m of cash that'll be spent pretty quickly.

There's also an extra £1m loan facility created after year end. Considering the current economic climate one would imagine they need another £4m at least to see them through to the end of this season.

Totalling up at how much HMFC have spent of other people's money since Admin: there's £12m from Anderson, £2m STC money (probably Anderson again) and £11m from FoH. A whopping £25m before we count what Budge/BidCo have put in. Probably close to £30m when you add in Budge's money. That's a lot of money spent on a relegation and a cup defeat at Alloa Away.

HMFC are a financial basket case propped up by external sources of cash.

Those shares are never being transferred to FoH are they?

[FilipinoHibs]

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Cash balances of £2.4m would suggest they haven't spent all the season ticket money before the season starts, but they probably have, considering they've taken in £3.7m in donations and also an extra loan from Budge via Bidco of £1.2m, so that's £5m in extra cash they've needed this year.

Cash balances are also boosted by them deferring PAYE of around £850k compared to last year and they also haven't paid their legal fees of £646k, so there's £1.5m of cash that'll be spent pretty quickly.

There's also an extra £1m loan facility created after year end. Considering the current economic climate one would imagine they need another £4m at least to see them through to the end of this season.

Totalling up at how much HMFC have spent of other people's money since Admin: there's £12m from Anderson, £2m STC money (probably Anderson again) and £11m from FoH. A whopping £25m before we count what Budge/BidCo have put in. Probably close to £30m when you add in Budge's money. That's a lot of money spent on a relegation and a cup defeat at Alloa Away.

HMFC are a financial basket case propped up by external sources of cash.

Those shares are never being transferred to FoH are they?

Pleasing😀

[Currie Hibee]

Tin hat on time!!! Given the pandemic I actually don’t think the accounts are that bad. Every club will have taken a pasting last year and without benefactors, JRS, HMRC defer etc then a large loss would be posted. A lot of businesses have taken advantage of HMRC deferrals and have needed additional support via government lending schemes or directors/ shareholders injecting fresh capital. I wouldn’t expect our accounts to be vastly different.

[JimBHibees]

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Pleasing😀

How fortunate have they been with their benefactors. Would be goosed otherwise

[green day]

Brian McGlaughlin this morning has twice said today that Budge states that the £3m benefactor money is pretty much guaranteed every year.

Budge has also allowed a £1.2m loan facility.

They really better hope Anderson doesnt get ill.

What a shambolic way to run a football club.............

[Col2]

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Brian McGlaughlin this morning has twice said today that Budge states that the £3m benefactor money is pretty much guaranteed every year.

Budge has also allowed a £1.2m loan facility.

They really better hope Anderson doesnt get ill.

What a shambolic way to run a football club.............

I would strongly suspect the benefactor money is directly linked to Budge being involved and when / IF she hands over the club to FOH then the benefactor money won’t be so available. Given the now critical reliance on this support I would guess the transfer to FOH is a lot longer than mid year 2021 away.

Stuart Wallace has sold the fans down the river. A spineless yes man who hasn’t provided any challange to the club given the financial basket case over last 2-3 years. No challange to the ridiculous spend on the park, the value from a £25m unfinished stand and the c£7m Budge bother in law received for fitting out the maroon monster.

He is now overseeing an almost impossible position to take over the club - loans to Budge and directors, a reliance on minimum £3m pa benefactor donation and a FOH income stream redirected to Budge to fund the club. He could and still could play hardball by drip feeding funds based on key outcomes and in effect holding board to account but he can’t wait to say yes to Budge even before she asks!

That BBC Programme showed how bowling club amateur FOH are, a tinpot organisation which has zero clue what to do other than bleat about the SPFL and Doncaster, going to court etc. They needed to keep 100% focus on the original objective and could have built up huge reserves, instead all the money is pissed away now and for the foreseeable.

Imagine if Hearts actually knew what they were doing? They should be well ahead of us, instead in lower league away to Morton on Saturday on the back of being dumped out the cup by Alloa. Big team.

[The Count]

Anderson is very clever on dealing in the stock market and making money and is no maroon blinkered fool.What i dont understand is he will know that Budge is running Hearts badly so why is he throwing his money away.If you donate money to any cause/charity you want it to be used wisely and she is not doing that.

[Monts]

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Anderson is very clever on dealing in the stock market and making money and is no maroon blinkered fool.What i dont understand is he will know that Budge is running Hearts badly so why is he throwing his money away.If you donate money to any cause/charity you want it to be used wisely and she is not doing that.

I think he has stated in the past that he started donating to hearts as he felt they were important for the community. But now if he stops, they will be worse off than if he hadn't bothered in the first place as they have become reliant on him. That might be a factor as to why he doesn't just pull the plug.

[Keith_M]

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Hearts have posted their accounts today. Showing something like a £473k profit, haven't seen the full statement

Edit.. Link here

https://www.heartsfc.co.uk/news/arti...al-report-2020

If they're now posting a profit, where did the proposed £6M loss come from that they were trying to get compensation for?

[green day]

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If they're now posting a profit, where did the proposed £6M loss come from that they were trying to get compensation for?

Mclaughlin did talk about this today - as he pointed out, the losses would have been massive without the benefactor money in these accounts, but as he signed off he said something like "if you think these are bad, next years losses will be eye watering".

So I guess the full impact of Covid and (in their case relegation) will emerge this time next year with huge losses - again propped up by Andersons dough?

[Keith_M]

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Mclaughlin did talk about this today - as he pointed out, the losses would have been massive without the benefactor money in these accounts, but as he signed off he said something like "if you think these are bad, next years losses will be eye watering".

So I guess the full impact of Covid and (in their case relegation) will emerge this time next year with huge losses - again propped up by Andersons dough?

Yeah, that makes sense.

[Oscar T Grouch]

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I think he has stated in the past that he started donating to hearts as he felt they were important for the community. But now if he stops, they will be worse off than if he hadn't bothered in the first place as they have become reliant on him. That might be a factor as to why he doesn't just pull the plug.

If that’s how he feels and is dealing with it then that’s gonna be one big hole in his pocket for the foreseeable. Seems counterintuitive to someone who’s used to gaining cash through his dealings. I wonder if this is another Brookes Mileson case, where the football club is so reliant on that funding that when he goes the club does too?

[green day]

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If that’s how he feels and is dealing with it then that’s gonna be one big hole in his pocket for the foreseeable. Seems counterintuitive to someone who’s used to gaining cash through his dealings. I wonder if this is another Brookes Mileson case, where the football club is so reliant on that funding that when he goes the club does too?

I cba even looking at the numbers, but it seems very clear that Hearts couldnt operate as they presently do without his cash.

If he wasnt around, then they would still have the - fantastic - FoH donations every year but there is no way they could have rebuilt the stand.

It would be revisionism to assume they would be "in £20m debt" because they simply couldnt have done the project.

However, these accounts show that in order to run their club at its present level they need his money just to operate - that is very dangerous and verging on the Mileson territory.

[James Stephen]

Im far from an expert, but is the point not that hearts wouldnt be spending the money they are if they didnt have the Anderson and FoH money?

So saying they are reliant on it, or they would have made a loss without it is moot, because they do have it?

It would be like Gordon letting hibs spend 2m over budget, knowing he would pick up the tab surely?

Simply put, if they had smaller income from outside sources, they would spend less?

Also, i suspect all clubs will have car crash accounts, including hibs.

Did the dons not just post losses of circa 5m?

[bigwheel]

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Im far from an expert, but is the point not that hearts wouldnt be spending the money they are if they didnt have the Anderson and FoH money?

So saying they are reliant on it, or they would have made a loss without it is moot, because they do have it?

It would be like Gordon letting hibs spend 2m over budget, knowing he would pick up the tab surely?

Simply put, if they had smaller income from outside sources, they would spend less?

Also, i suspect all clubs will have car crash accounts, including hibs.

Did the dons not just post losses of circa 5m?

The Anderson and FOH money will certainly make a huge difference to Hearts. Must double their income or thereabouts....Their finances are significantly stronger as a result ..as you say, ours and others will be much worse

[Jones28]

It all calls in to question the sustainability of what Hearts are doing. Say Anderson has a falling out with someone at Hearts and pulls the plug? Or was to pass away suddenly and, like what happened to Gretna, his family pulls the plug and they are £3 million short every year?

As others have pointed out, that extra income should put them miles ahead of us, on a level with Aberdeen but with superior infrastructure that means when Aberdeen have to start diverting cash to a new stadium they would be in pole position to race ahead of the rest of us. Where are they?

The championship.

Ann Budge is a genius but.

[HibsGW]

We’re obviously going to find a way to put a negative twist on this, posting profits in a relegation season during a pandemic is absolutely good going for them

[Michael]

I wonder why this guy didn't just buy hearts?

[Keith_M]

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We’re obviously going to find a way to put a negative twist on this, posting profits in a relegation season during a pandemic is absolutely good going for them

If it wasn't for the massive outside donations, that 'profit' would have been a pretty substantial loss.

If somebody wants to donate their money to a football club, then who are we to argue with that. However, it does put into perspective how well. or otherwise, they are actually run.

[mal]

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We’re obviously going to find a way to put a negative twist on this, posting profits in a relegation season during a pandemic is absolutely good going for them

I will duly oblige by pointing out that Hearts' "profit" was due, at least in part, to them screwing their fans yet again, this time by refusing season ticket refunds for the unfulfilled fixtures. “The complete shutdown of Scottish football and related revenue streams unfortunately means we are not able to offer refunds to season ticket holders for outstanding fixtures,” said a reply to one fan. “The financial impact on the club would be significant." https://www.edinburghlive.co.uk/spor...efund-18324096.

Odious club.

I don't suppose anyone in the media has raised this point...?

[bigwheel]

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If it wasn't for the massive outside donations, that 'profit' would have been a pretty substantial loss.

If somebody wants to donate their money to a football club, then who are we to argue with that. However, it does put into perspective how well. or otherwise, they are actually run.

yes, but we would be delighted on here if we were getting unconditional millions of pounds worth of donations from a benefactor and supporters....there is not much negative about that - their performance with it, yes, fair enough....

[FilipinoHibs]

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It all calls in to question the sustainability of what Hearts are doing. Say Anderson has a falling out with someone at Hearts and pulls the plug? Or was to pass away suddenly and, like what happened to Gretna, his family pulls the plug and they are £3 million short every year?

As others have pointed out, that extra income should put them miles ahead of us, on a level with Aberdeen but with superior infrastructure that means when Aberdeen have to start diverting cash to a new stadium they would be in pole position to race ahead of the rest of us. Where are they?

The championship.

Ann Budge is a genius but.

Anderson is getting close to retirement and then won't have is large salary and multi-million pound annual bonus. When that happens he will be less inclined to donate. As CapitalGreen stated when his investments underperform as they did in March he will cut back also.

[WhileTheChief..]

Yup, Scottish Mortgage Trust is only up 90% YTD this year.

James must be skint.

[Rumble de Thump]

When a football club has a business plan that makes it reliant on multimillion pound annual donations for years to come, it's really more wishful thinking than an actual plan. You can't run a businesses just by crossing your fingers and hoping for the best, no matter what certain wealthy individuals have supposedly promised. It's a recipe for (another) disaster.

[cocteautwin]

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Anderson is getting close to retirement and then won't have is large salary and multi-million pound annual bonus. When that happens he will be less inclined to donate. As CapitalGreen stated when his investments underperform as they did in March he will cut back also.

I think Anderson must have already earmarked £15m for next 5 years of financing Hearts. I don’t think the auditors would have signed off the accounts without this level of commitment. Just guessing really but it seems his limit is £3m a year. Budge had to loan £1.4m this year and it looks like is preparing to loan another £1m next year.

Add in the FoH cash each year and I’d say HMFC can rely on external funding of around £5m a year for the next few years.

They should be skooshing 3rd place.

[jacomo]

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Can't believe she used her honorary doctorate to sign that off 🤔

Truly, she is the Hyacinth Budge(t) of Scottish football.

Unbearably pompous behaviour from someone who (as we have now seen in the documentary) is utterly useless.

[Peevemor]

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I think Anderson must have already earmarked £15m for next 5 years of financing Hearts. I don’t think the auditors would have signed off the accounts without this level of commitment. Just guessing really but it seems his limit is £3m a year. Budge had to loan £1.4m this year and it looks like is preparing to loan another £1m next year.

Add in the FoH cash each year and I’d say HMFC can rely on external funding of around £5m a year for the next few years.

They should be skooshing 3rd place.

They're second as it stands so they must be delighted.

[FilipinoHibs]

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I think Anderson must have already earmarked £15m for next 5 years of financing Hearts. I don’t think the auditors would have signed off the accounts without this level of commitment. Just guessing really but it seems his limit is £3m a year. Budge had to loan £1.4m this year and it looks like is preparing to loan another £1m next year.

Add in the FoH cash each year and I’d say HMFC can rely on external funding of around £5m a year for the next few years.

They should be skooshing 3rd place.

Yes the money is being used to keep them afloat and they are still needing loans. Once both go and they are in the hands of FOH, then the future does not look bright. How they will ever pay back Budge for those loans is another question.