Hearts 'to clear debt in 15 years'

Ewan Murray
THE issue of a spiralling debt is not something which, publicly at least, those at Heart of Midlothian have appeared altogether concerned about in recent times.

Chairman Roman Romanov, in fact, went so far as to vehemently challenge a shareholder at last year's annual general meeting over how his own or any business could feasibly grow without borrowing. It is noteworthy, therefore, that the Hearts deputy chief executive, Pedro Lopez, has revealed his hope that the club can be debt-free within 15 years following the successful redevelopment of Tynecastle.

"We would like to see that (the debt be eliminated] in 15 years, maybe 20," said Lopez as Hearts submitted their planning proposal for the £51m project to rebuild their 122-year-old home on Thursday. "It also depends, of course, how successful we are on the pitch in that time."

Lopez and his fellow staff on Hearts' management team have engaged in some number crunching in attempting to prove just how Tynecastle's new 10,000-seater main stand will prove financially viable.

Increased ticket revenues of £2.5m per season will help, along with cash generated from 20 executive boxes, a 1,000-seat restaurant, 2,000 hospitality seats while Hearts are also adamant the stadium should be used for international challenge matches. Sceptics who feel the club will struggle to fill 23,000 seats should look to Derby County and Sunderland who have improved crowd figures thanks to new facilities.

The problem is that Hearts are already carrying a substantial debt but Lopez denied the club have moved close to the £40m borrowing figure agreed a year ago. Sales of Craig Gordon, Rudi Skacel and Paul Hartley generated nearly £10m, but "we have not used it" said Lopez.

Nonetheless, thoughts of what may realistically be a £70m debt being cleared within the time scale stated remain optimistic.

Sensibly, Hearts are also yet to pay the City of Edinburgh Council £1.8m for the adult learning centre and nursery which sit adjacent to Tynecastle; that cash will be paid once planning consent for the stand's redevelopment has been granted.

Lopez denies the Gorgie outfit are in danger of emulating Manchester United, whose profits in excess of £60m merely serve to pay interest on huge borrowings. The next scrutiny of Hearts' finances will arrive within three weeks, with the publication of their accounts for financial year 2006/7 and AGM 28 days later.

"We are not aiming to be owned by banks," insisted Lopez. "We are doing this (rebuilding the stand] to make the club more financially viable and independent in the longer-term.

"You need to bear in mind that this development, one is the stand and one is the building in front. With the building in front we will have partners so that debt won't be £51m. It will also help bring extra revenue to the club. The stand will enhance economical opportunities.

"We have done our numbers and the revenue will be generated to serve the long term and drive investment to the squad. It should be able, over a period of time, to write off the debt we have at the moment, not increase."

In backing up Lopez's theory, the stand itself will cost £30m; Hearts hope a significant chunk of the remaining £21m will be supplied from external companies who wish to utilise the commercial space which will sit on McLeod Street.

"We hope to speak to the council again at beginning of February to see how things are going," Lopez explained. "We are working closely with them. We hope to have the stand in place during season 2010/11. The council can still say no, but we think that's very unlikely to happen."

Certain modifications to the plan are almost inevitable. Hearts are also likely, along with the Scottish Rugby Union, to
be asked to contribute towards the tram stop planned for nearby Stevenson Road.

It is to the club's credit that, amid a dismal league season, they have not taken what would be an easy option of saying football must take a back seat while the stadium plan is financed.

"The emphasis on the football side will be stronger and stronger," said Lopez. "We also realise in order to achieve our long-term view and vision of the club of being a European club, successful club, big club, we need to have success and good facilities and we are working on these aspects at the same time.

"We are putting in place measures now to improve the situation on the field. Our longer-term ambition is Europe and to be challenging, that's where we want to be."

The long-term commitment of Vladimir Romanov, therefore, should not, according to Lopez, be questioned by disillusioned supporters at this time.

Taken from the Scotsman