Hearts owner Ann Budge vows to pay £300,000 of her own money towards the new stand
Tuesday 10 May 2016 13:32, UK
Hearts owner Ann Budge has promised to pay £300,000 of her own money towards the new stand at Tynecastle.
The Edinburgh businesswoman has also offered to defer repayment of her £2.5m loan to allow the Foundation of Hearts supporters group to contribute more cash to the project.
It has been estimated the main stand will cost around £11m, with contributions of £2.5m coming from unnamed benefactors.
Budge has unveiled a detailed payment plan, including a debenture scheme, and will also use funds already in the club's account.
Work on the 7,000-capacity stand is due to begin this autumn, and when completed will raise the capacity at the ground to more than 20,000.
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In a statement on the official Hearts website, Budge provided detail on how she hopes to finance the rebuild.
"Our estimates of cost are circa £11m," Budge said. "Allowing for some contingency (10%), we are working to a budget of £12m.
"Our funding plan is, in summary, as follows: Financial Reserves from the club: £3m; Benefactor Contributions £2.5m; Commercial Contributions: £0.5m; Total available today: £6m
"Clearly, this leaves a potential funding gap of up to £6m. However, I would ask you all to remember this. Over the last two years, with the support of the fans and with sound financial management, we have built up a financial reserve of £3m. There is nothing to stop us doing the same again, over the next two years, with your continued support.
"What does this mean? Unashamedly, I am asking you to keep doing what you have been doing. We need season ticket holders to sign up again in their numbers.
"We need corporate members and sponsors to continue to back the club across the season. We need FOH pledgers to keep pledging.
"In short, we need to continue to work together, the club, the Foundation of Hearts, and the supporter to deliver this project. By doing nothing more than has been done over the last two years, the club can once again build up £3m of reserves.
"While that will be a wonderful achievement, it would still leave a £3million gap. So, what else are we planning to do?
"We will shortly be announcing details of a debenture scheme - which we are confident will be a great success. We have also been asked by many fans to consider a number of other ideas in relation to the new stand development. More information will be provided on these schemes over the next few months.
"The other major initiative revolves around the FOH/BIDCO agreement. According to that agreement, repayment to BIDCO should start on 1st June 2016.
"I have made an offer to the FOH Board that they can defer repaying the BIDCO loan for a period of up to two years, and that all donations made during that period, should continue to be paid to the club. This money would be allocated to the new main stand project. At current levels of contribution (£125,000 per month), this would generate £3m.
"Finally, I have also offered to waive all interest payments due to BIDCO, during the period of up to two years when this deferral is in operation. This would effectively be my personal contribution of £300,000 to the main stand fund."
