Foundation of Hearts divert all cash to Tynecastle club as ownership transfer is delayed

Hearts have become indebted to fans pledging money through Foundation of Hearts.

Foundation of Hearts will pass all fan pledges to Heart of Midlothian to help club finances after delaying a transfer of ownership.

With majority shareholder Ann Budge now repaid in full for her initial £2.5m investment to gain control at Tynecastle Park, every penny of FoH cash will go directly to Hearts.

However, the club and the Foundation have agreed to postpone the switch of ownership amid the current financial crisis caused by the coronavirus pandemic.

Budge was due to hand her 75.1 per cent shareholding in Hearts to FoH before May but that has been put back until later this year.

The plan is she will will stay on as chief executive following the changeover, although the club would then be owned by the Foundation on behalf of their 7,500 members.

More than 100 people have subscribed or reactivated their membership with FoH since football's virus-enforced shutdown.

Hearts asked players and staff to drop wages by 50 per cent after matches were indefinitely suspended, and the Foundation want to do everything possible to support the club on behalf of fans.

Pledges have now reached a remarkable total of £10m and, with Budge paid up, FoH chairman Stuart Wallace confirmed all monies will now be diverted straight to Hearts.

"In that window [between now and share transfer], our pledges will go straight to the club at this crucial time. We're bowled over that we have seen pledges go up in such challenging times. Hearts fans really are the lifeblood of our club," he said.

In an email sent to all members, he confirmed that transfer of ownership is now delayed. It is hoped that the handover will take place later this year.

"Given the troubled situation, the board of the Foundation of Hearts has taken the decision that this is not the time to be adding any further potential disruption by pushing forward with the handover of the majority shareholding," said Wallace.

"All parties remain totally committed to fan ownership and this handover will, of course, still happen, but such an historic event must be conducted at a more settled time – a time when the handover enables the club to proceed seamlessly with its business and a time when we can properly celebrate the achievement of the fans in reaching this milestone.

"Sadly, this is not a time when any of us, we believe, has the inclination for a celebration, however well-merited."