BY ALAN TEMPLE – @CCP_Sport
HEARTS have announced a profit of £2.3 million for the financial year ending June 2017 despite spending £6.9 million on the redevelopment of Tynecastle Park.
The club have released their accounts to shareholders ahead of their 111th Annual General Meeting (AGM) and the positive figures are owed largely to an ‘exceptional donation’ of £2.5 million from an unnamed benefactor, which was put towards the construction costs of the new main stand.
The impressive structure, which was open to the public for the first time against Partick Thistle yesterday and takes the capacity of Tynecastle to 20,099, cost £6.9 million over the course of the financial year, including necessary work on the Wheatfield Stand undercroft.
There is a commitment to spend another £5.9 million and, with owner Ann Budge recently revealing that the project was expected to run over-budget, accounts show that Hearts have also secured a bank loan of £1.75 million which they can utilise if necessary.
Supporters group Foundation of Hearts (FoH) also contributed £1.5 million to the cost of the main stand in the last financial year, while their paid membership of more than 8,000 fans continue to contribute £125,000 per month in working capital for the day-to-day running of the football club.
Hearts’ finances are boosted by a turnover of £11.3 million, up by £1.3 million compared to last year. That includes gate receipts of £4.3 million, commercial income of £2.7 million and UEFA prize money and solidarity payments totalling £2.6 million following their brief run in the Europa League.
The accounts also confirm that Hearts banked £384,000 for Callum Paterson’s transfer to Cardiff City.
The increased turnover is, however, mirrored by a rise in operating costs which now stand at £5.4 million from the £4.3 million of 12 months ago and increased staff costs of £5.9 million. Hearts have a net bank balance of £3.3 million.
The 2017 AGM will take place in the Gorgie Suite at Tynecastle Park on December 19 at 11am.