Ann Budge warns Hearts players over contracts

Hearts owner
Ann Budge has reiterated the club may suspend players contracts if they do not
accept a reduction in wages. Mrs Budge released the following statement on the
club’s official website last night:

“In recent weeks, I have had to make some of the toughest decisions
during my time at the club and in my professional career.

I have already spoken of my admiration for our
people at Heart of Midlothian; the staff who have remained steadfast throughout
the turbulence experienced by the club in past years. They have again shown
their commitment and selflessness by making sacrifices, not least financially,
to preserve the long-term sustainability of the club they – like the hundreds
of thousands of supporters – hold dear.

The same applies to the playing staff, all of
whom I have spoken to on an individual basis in the past few weeks to discuss
the impact of COVID-19 on the club and the potential implications for
themselves.

Unanimously, they understand the unprecedented
circumstances caused by the pandemic and the challenging position the club
finds itself in as a consequence of the lockdown and enforced suspension by the
football authorities. Equally, I appreciate and empathise with the fact that
the players will have different personal circumstances to consider and are at
different stages of their careers.

It is no secret that clubs are having to take
significant steps in order to safeguard their financial health, both short term
and for the foreseeable future. Our business model and our commitment to fan
ownership is arguably unique to Scottish football, and for all of the many positives
that brings, in the current climate it also presents us with distinct
challenges.

As Chair I have to plan to protect the club by
looking at the specific issues as they affect us and address them accordingly:
there is no one-size-fits-all approach to emerging intact from the impact of
the virus. I love the club as much as any other supporter, but we are only
custodians with a duty to the generations that will follow us to pass on a
strong football club.

In my conversations with the playing squad, I
outlined that the most judicious approach for the club – considering all
available information – would be to implement a temporary reduction in player
salary, with a proposed percentage based on earnings ranging from 10% to 30%.

In those same conversations, and subsequent
discussions with PFA Scotland, I outlined the rationale and also explained why
a deferral is simply not an option for the club. To reiterate, I cannot – and
will not, in good conscience – leave the club in a position again where
football debt is left as a ‘legacy’ for those who follow.

I know too well the perils of that scenario,
having arrived at the club to be immediately presented with a bill of almost
£1m worth of football debt. I am an owner and supporter who is committed to the
journey of full fan ownership and it is imperative that the handover takes
place without that future financial burden. This was my promise to the fans who
helped rescue the club in its hour of need and who continue to pledge their
support monthly.

Furthermore, even in light of recent
announcements from UEFA’s Executive Committee and the Scottish Government,
there remains – completely understandably given the nature of the virus – no
certainty or accurate forecast on when football may return and what form it
will take when it resumes, from the perspective of spectator attendance.

I wish there were an option other than a
temporary wage cut but after careful consideration it is the only way for the
club to proceed with financial certainty.

Having paid the players’ wages in full for
March, I have written to them today to request the formal notification of their
acceptance of the temporary wage cut proposed in order that we can process
salaries next week. I remain hopeful that the players will accept for the
reasons outlined above, as the only viable alternative is that their contracts
remain suspended under Clause 12 of the standard SPFL contract which means that
they will not receive any wages during the period of suspension.

To reiterate, this is the least palatable of the
viable options available to us and even if this is ultimately the route we have
to take, we would continue to be open to dialogue with individual players on a
month-by-month basis. As a fan-owned club we are unable to take on a
substantial amount of player debt, which the club might not be in a position to
honour, or which might significantly damage the club’s ability to recover
quickly from this crisis situation. 

The board and I bear the privilege and
responsibility of being custodians of a proud institution, one that we are all
in unanimous agreement must be handed on to future generations in good health
and with a bright future. I say this in the midst of a health, social and
economic crisis, the likes of which we have never known and, hopefully, will
never see again.

For many clubs, businesses and institutions,
this is a matter now of survival and in time, recovery and revival. I hope
everyone connected with Heart of Midlothian appreciates that this is the
over-riding objective in any and all decisions taken throughout this period. By
working together, we stand the best chance of emerging stronger.”