If I don’t act to cut Hearts’ costs NOW, this club will not be here in SIX MONTHS

BUDGE ISSUES BOMBSHELL ULTIMATUM TO TYNECASTLE PLAYERS AND SUPPORTERS

ANN BUDGE has been at the eye of the storm ever since Scottish football was forced into a coronavirus shutdown.

The Hearts owner was the first to ask club players and staff to take a 50-per-cent wage cut, initially set for the period between April and August.

Manager Daniel Stendel and captain Steven Naismith swiftly answered the call but a number of other first-team players remain in consultation with PFA Scotland as they weigh up whether to put forward an alternative, such as wage deferrals.

Budge has faced criticism over the way the process has been handled, while the speed of her request also prompted some to question the underlying financial position at Tynecastle.

A further note of controversy was struck earlier this week when it emerged that head of player recruitment John Murray had emailed agents asking about potential additions for next season, including a jarring reference to the possibility of paying transfer fees if existing players were moved on.

Budge yesterday answered back in a near 2,000-word address to supporters carried on the Hearts website.

Here, Sportsmail looks at some key points as she firmly defends her stance and insists the club could go to the wall if it simply waited for government or institutional help that may not arrive in time.

ON HEARTS’ FINANCIAL POSITION

‘Firstly, let me reassure all Hearts supporters that our financial position is no worse (nor better) than almost every other senior football club in Scotland, despite the recent continuous supply of mis-information and malicious speculation.

‘In line with most other clubs, we aim to hold sufficient cash reserves to cover two to three months of normal trading operations. The reason we are implementing costcontrol measures is because we could be facing up to six months of totally abnormal operations.

‘Given that we all know we have to plan for that eventuality, I see absolutely no reason for sitting back and waiting either on a miracle or for the government to bail out every company in the country… in a timely enough manner.’

ON THE GOVERNMENT’S PLANS TO HELP COMPANIES STAY IN BUSINESS

‘We are following up on all of these initiatives. However, in every case the devil is in the detail and none of these packages are as straightforward as they might seem when reported in the headline announcements.

‘As an example, although it was announced that banks would be able to help businesses of our size, having approached our bank we have been formally advised that their policy towards football clubs hasn’t changed and they remain unable to lend to us!

‘I would stress that we are not alone in this. This is not a Hearts problem; it is a football problem. We will continue to pursue this but it is indicative of the fact that football is not very high on the list of priority sectors for support.’

ON THE NECESSITY OF ASKING FOR WAGE CUTS

‘Payroll, as with all clubs of our size, is by far our biggest monthly cost. Notwithstanding the Job

Retention scheme (proposed by the government), there is little doubt we will have to implement a salary-reduction programme across the club. We simply will not survive a six-month close down, unless we implement this.

‘I have been roundly criticised for even suggesting such a thing. However, our staff have been amazing. There is widespread recognition that to get through this period, everyone has to stand together and do what they can. This is the approach most likely to allow us to avoid redundancies and to save jobs and contracts.’

ON THE PROCESS AND PLAYERS YET TO AGREE

‘On Monday, 16th March, I addressed a full gathering of players, coaches and backroom staff and explained the severity of the situation following the shutdown of football on 13th March.

‘I stressed that, despite what was being said publicly, the consensus, among most people involved in running football clubs in Scotland, was that football was not likely to start again until late July/early August.

‘I emphasised the importance of maintaining regular dialogue to enable us to provide as much clarity as possible during these uncertain times. We set up a communications group to facilitate this.

‘On Tuesday, 17th March, I met with a large group of senior managers to discuss the full implications of the close down and to consider options.

‘On Wednesday, 18th March, I arranged meetings at Riccarton and at Tynecastle to explain the proposed way forward to all. I also spoke to Steven Naismith and asked him to relay the message to all players, who were already at home, via the aforementioned communications group.

‘A number of staff and managers offered to take no salary or a larger wage reduction to enable us to better support those who needed it more.

‘Given the added complexities around players’ contracts and the wide range of personal circumstances, a number of players are still reviewing their situations. However, I believe we will reach a good outcome as I know they want to do what they can to support the club.’

ON JOHN MURRAY’S EMAIL TO AGENTS

‘Much has been made of an email, sent by our head of player recruitment, to agents with regard to potential recruitment requirements once football resumes. We must continue to plan for football returning and make sure we are in the strongest possible position possible when that happens.

‘I would, however, like to make it clear there is no pot of money sitting in the bank that could be going towards player or employee wages and there is certainly no intention of paying transfer fees under the current circumstances.’

ON GENERATING MONEY

‘We will be putting season tickets on sale as soon as we can. Obviously, we are constrained in a number of ways, not least the uncertainty surrounding which division we will be playing in, when this season will end and when next season will start.

‘We will, however, put maximum protection and flexibility into any terms and conditions surrounding the purchase of season tickets or hospitality packages.

‘I have been overwhelmed by the support we have received from our sponsors and want to thank all who have been in touch and offered their backing at this time.

‘I also want to give special mention to the FOH (Foundation of Hearts) pledgers who are continuing to pledge, knowing how reliant the club is on this source of funding.’