Mercer to sell Hearts for life on the Riviera

DEREK DOUGLAS, Chief Reporter

1 Jun 1993

HEARTS FC chairman Wallace Mercer yesterday ended months of speculation with the announcement from an Amsterdam hotel that he is to take up residence in France and that the football club is for sale.

He told The Herald last night that the decision to put his majority shareholding on the market had been taken seven days ago when he had been joined at their holiday home in France by his wife, Anne.

Hibs chairman Douglas Cromb said the changes at Tynecastle could lead to reconsideration of the two Edinburgh clubs sharing a single, purpose-built stadium -- an offer which had been ruled out by Mr Mercer.

Mr Mercer refused to say whether his decision to establish permanent residency in France had been motivated by tax reasons.

He also declined to answer questions about an alleged substantial golden handshake from Dunedin Properties when he resigned as managing director in February of this year.

"That would be for my accountants Touche Ross to explain.

The terms of my resignation from Dunedin are covered by a very sound and rigorous confidentiality agreement and I can say no more about that," he said.

Mr Mercer added that the decision to leave Edinburgh on April 4, at the end of the tax

year, had been taken "purely as a precaution".

He said that there "might be an element of truth" in the suggestion that he was, indeed, no longer eligible for UK taxation but, again, that was a matter for his accountants.

In the aftermath of yesterday's announcement there was immediate speculation as to the future of the club and the identity of potential buyers for Mr Mercer's 75.1% shareholding.

Last night it emerged that at least one potential purchaser was hovering in the wings.

The accountancy firm Price Waterhouse confirmed that it had been acting for an "Edinburgh businessman" who had expressed an interest in acquiring the club.

Mr Ian Durie, a partner with Price Waterhouse, said: "We have been considering with him for a number of months whether or not an acquisition would be appropriate.

Until today there has been no willing seller.

Mr Mercer was aware of our interest but he does not know the identity of our client.

"If need be then our client might be willing to make an outright purchase or act as part of a consortium.

More than that I cannot say at the moment," added Mr Durie.

Mr Mercer, who acquired Hearts in 1981, has been abroad, apparently on sick leave, since his April departure from the UK when he took up residence at his holiday villa in the village of Mougins, near Cannes.

Yesterday's announcement that Mr Mercer was willing to "consider realistic offers" for his corporate holding in Hearts is at marked variance to recent public pronouncements on that matter.

For the past six weeks he has repeatedly dismissed speculation as to the reason for his extended absence from Edinburgh and Tynecastle.

A month ago, while continuing to operate from his French villa, Mr Mercer sacked manager Joe Jordan.

The Hearts chairman maintained that he was in France on doctor's orders.

Five months ago, when he resigned from his position as managing director of the Dunedin Property Group, Mr Mercer said he had done so in order to concentrate on running Hearts and in particular to oversee the Tynecastle stadium redevelopment.

Eighteen months ago, in an interview with The Herald, Mr Mercer specifically denied the suggestion that he was to take up residence abroad.

"I want to extinguish any thoughts or rumours that I am going abroad or selling up for financial reasons," he said then.

The confirmation of Mr Mercer's decision to abandon Edinburgh for Cannes was contained in a fax message to the media from the club's public relations advisers.

Simultaneously, Mr Mercer called a board meeting at the Holiday Inn in Amsterdam and sent a letter detailing his plans to the club's 860 shareholders.

Mr Mercer spent much of the day with fellow directors Mr Pilmar Smith, Mr James Clydesdale, Mr Les Porteous, and Mr Colin Wilson.

Mr Quintin Jardine, of Northern Corporate Public Relations, who were hired to handle the departure announcement, said the board had been taken by surprise by the chairman's decision.

"They were undoubtedly surprised but they back the chairman in his decision.

They understand the reasons for his decision.

He is supportive of them and they are supportive of him.

There is no dissent within the board at all and they will work with him for the good of the club and to introduce a new majority shareholder if one is forthcoming."

Last night Mr Alex Jones, chairman of the Federation of Hearts Supporters' Clubs, said: "The timing of the announcement has taken us by surprise but we are not really surprised that Wallace has decided to go.

"He has been out of the country for a couple of months and it has become increasingly obvious that he was was not coming back.

He does not work here any more and his only interest in this country was Hearts.

A lot of supporters will be glad to see him away but unless somebody comes forward with an acceptable offer then he isn't really away, is he?

"His record is patchy.

In many ways he has been good for the club.

He took us from nothing.

We had a great run in 1986 when we came second in the League and just missed out on the Cup.

We had a good run in Europe the following year.

That was the high point of Wallace's chairmanship, but he has also made mistakes.

"His ticket pricing for the European games upset a lot of fans and he also upset a lot of people with his bid for Hibs.

Personally I think he should have gone all the way.

He had 66% of Hibs shares but he didn't drive it home.

I was for taking them over but a lot of other fans were upset.

"He has done a lot of good work in his efforts to get a replacement stadium for Tynecastle but we were let down by the politicians in Edinburgh.

We were ill-served by the politicians in this city.

"We've got to look to the future now.

Personally I would like to see Douglas Park back in charge.

He was a director but left after a row with Wallace.

I would like to see him back.

He also has got the good of the club at heart," said Mr Jones.

Hibs chairman Douglas Cromb said that the stadium proposed for Straiton in Midlothian, of which Hibs would be tenants, was intended by the developers as being for the community as a whole and could be shared by Hearts.

He said: "Hearts supporters were built up by Wallace Mercer to stay at Tynecastle.

That could change now." Although there was animosity between supporters, the two clubs had built up a good relationship at boardroom level in recent times.

Taken from the Herald