Exclusive: Hearts receive two offers of investment as the club discuss cashflow and finances
Tynecastle officials are open to the prospect of extra income
Hearts chairwoman Ann Budge revealed today that the club are open to investment after receiving two offers of fresh capital in recent months. Foundation of Hearts would have a strong say in any deal as majority shareholders at Tynecastle Park, and directors are willing to consider proposals if they are beneficial.
Budge has proven instrumental in sourcing outside investment for Hearts in recent years. She helped bring in major benefactor James Anderson, who now sits on the club’s board as a non-executive director. He is part of a group of philanthropists who have ploughed more than £25m into Tynecastle since 2017.
The Edinburgh outfit are keen to continue growing and expanding. They finished third in this season’s Scottish Premiership and secured European league-stage football for the second time in three years. Reaching the next level is a gradual process and Budge will not take any risks with the club’s capital. In an exclusive Edinburgh News interview she said two investment offers had come to Hearts recently.
“We have had at least two approaches in the last few months,” explained Budge. “I always say the same thing: ‘Make us a proposal.’ I can’t say for sure. All we can really do is look at it and say: ‘Where are we? Without any other external investment, what can we achieve? Where can we go? If somebody else does want to buy in, what will the club get out of it? In what way is it going to help us achieve anything?’
“We’ve got to be. Previously, it was easy for me to just shut them off [because of her deal to hand control to the Foundation]. I can’t do that any more. We’ve got to look seriously at anybody who comes forward. We would say no quickly if it’s an obvious non-starter, or ask them to give us their thoughts on why it would be good for the club. If that comes to anything, then we have to talk about it with our majority shareholders.”
Budge admitted that Hearts encounter cashflow issues at times like many other clubs, but stressed that finances would never be allowed to derail their stability. She stressed that investment offers so far have not been suitable or beneficial and that directors will continue to protect the club’s long-term future when it comes to any external involvement.
“We have had solid and reliable investment over the years which we have been able to count on,” said Budge. “When I’ve been criticised for spending money, it’s only because I’ve known we have got it. Every so often, we have a cashflow problem. All clubs do. Anybody who reads the accounts knows that, over the last few years when we have had a cashflow problem, I’ve bridged the gap. There’s no way I or other people here would ever let a financial problem bring us down.
“We know what’s going on in Scottish football at the minute with lots of people wanting to invest. I’m still trying to get one of them to tell me why they think Scottish football is such a good investment when nobody - with the possible exception of Celtic - seems to be able to make any money out of it.
“Over the last 10 years, I’ve lost track of the number of people who have contacted me saying they want to invest in the club or would like to buy a stake. It used to be very easy for me because I could say: ‘Sorry, I can’t do that. I have a legal agreement with Foundation of Hearts so the club is not for sale.’ Since I’ve handed over the shares to FoH, it isn’t quite so straightforward because it’s not my unilateral decision any more.
“When people come to us, we look at it. None of the people who have approached us to date offered anything better than we have already got. That doesn’t mean we wouldn’t take investment but that would definitely be a board decision now and FoH would obviously have a big say in that.”