I recently contacted Rugger Guy on behalf of a Maroon mate.
He wanted my egg-chasing buddy to look over the accounts of his club.
You can read them in full here.
Rugger Guy was graciously prompt but necessarily brief.
he’s snowed under with his day job.
However, here is his very brief appraisal of money matters at Tynecastle:
Phil, very busy at present but gave a cursory look for your Heart of Midlothian friend.
The overall conclusion is that they are sound, benefitting greatly from £3.25m contributions to balance the books.
Clean audit opinion and the owner Ms Budge is prudent and helpful in providing a steady ship.
Turnover increased from £12.1m to £15.1m.
Staff costs increased from £7m to £8.2m.
Other operating charges increased from £6.1m to £6.5m.
PBT was £2.9m vs ££1.8m but benefitted fully from donations. £3.25 m was donated this year versus £3m last year. Interestingly, UEFA and solidarity prize money contributed £2.5m once again so the club is very reliant on this.
Cash inflow was £0.4m aided by donations from benefactors and also over £3m was spent on ongoing developments to Tynecastle.
Cumulatively, stadium development to date is almost £21m.
Working capital is in deficit by £11m compared to £8m last year but the main difference is down to a loan being repayable within the year.
Loans outstanding were £4m. Ms Budge uses her vehicle Bidco to provide this. Bidco has standard security over the stadium and a floating charge over the assets of the company. Short term loans are interest-free, but long term loans are charged at market rates.
The audit opinion is clean and accounts are prepared on a going concern basis.
All in all, a small company run very well in developing its ground from internal resources, aided by support from the Hearts supporters and other sources.
So, there you have it.
The usual caveats apply.
What you have just read is the opinion of a non-aligned qualified expert.
He doesn’t even like footie!
My lay reading of the above is quite positive from a Maroon perspective.
Given that Hearts almost died in liquidation the current regime at Tynecastle appears to the polar opposite of Mr Romanov et al.
The moral of the story seems to be if you are watching a team you can afford then you will continue to have a club to support.
Consequently, there is no need for the Tynecastle bunch to play semantic games about any “Holding Company Vehicle” pish.
Unlike Rangers, Hearts did not die and Maroon mates are still watching the same
Moreover, unlike their full-fat cousins, the Jambos stepped up large and backed their club at the crucial moment.
If I were a Hearts fan I would not be worried about long-term financials if Ms Budge remains involved
The dead club also have outstanding social taxes owed to the tune of £40m+ .yet sevco 2012 are playing in the EL .
How remiss of Uefa to have overlooked that little point
The accounts show a well-run club, and well done to Anne Budge. However, they got away with murder via a CV. This was a cheating club who fielded a team they could not afford to win two Scottish Cups. Furthermore, if anonymous donations were coming into Ibrox you would be all over it. Who are these anonymous benefactors at Hearts? I smell a rat.
Ach Phil, you were doing so well until “full fat cousins” !!
On your holding company point, Phil, the very gates of Ibrox give lie to that pish. It clearly states on them, Rangers Football Club Ltd. it’s those last three letters that give the game away. If club and company were separate entities and the club was not a financial entity, why would it require limited liability status? From what? The copiers and pasters print pictures of those gates regularly. You would think one of them might have twigged by now.
From face painters!!!
Their own Club Website verified what we all knew and they all wanted to dismiss.
Prior to them being released from the AIM Regulations the site clearly stated that The Rangers International Football Club PLC was A FOOTBALL CLUB based in Glasgow,Scotland.
They had no choice but to be transparent about the situation as the regulations ensured no falls claims or misleading facts could be put on their Official Site.
No sooner had they been bumped from the Stockmarket then the wording was changed to what it states at present:
This is the website for Rangers International Football Club PLC, the holding company of The Rangers Football Club Limited.
Rangers International Football Club PLC is based in Glasgow, Scotland.
You have to ask yourself why it was that from 2012-15 they state one thing and from 2015 til present day they state otherwise.
Well you don’t have to ask yourself anything because a trained monkey could work out what has gone on.
A not particularly bright monkey could work it out. Now, monkeys out Ayebrokes ways are a common sight on match days. Clever monkeys?? Well, they’re harder to spot than Larkhall virgins.