Hearts AGM: 8 key questions the club and FOH boards may face

There may not be the police escort once required for Chris Robinson as persona non grata amongst fans as he sought to sell the club's home or the sheer bafflement provoked by Roman Romanov, son of former owner Vladimir Romanov. However, it will likely be the most difficult faced by the current Hearts board. 

Proceedings get under way with the club AGM at 11am and the FOH following in the evening at 6pm. Those at the top table of both will likely have to tackle questions on a variety of topics from those in attendance. With that in mind, what could be the key questions that may shape both meetings?

READ MORE: Hearts accounts analysed: Benefactors, Euro boost, player trading, hotel and costs

What is the board's view of the performance of the first-team?

If the AGM was held two weeks' previously there would have been a sense of positivity on the back of four consecutive wins with the team in third. Fast forward to the present day, however, and Hearts sit sixth following back-to-back defeats, behind both Kilmarnock and St Mirren as well as city rivals Hibs.

It comes off the back of a disappointing end to last season where the team failed to capitalise on a strong advantage in the league to finish third for the second campaign running which would have brought European group stage football once more. Aberdeen overtook the men in maroon in the final weeks of the season.

The impact of eight games in Europe was detailed in the club accounts with £7.391million generated through UEFA solidarity and prize money. It was estimated that qualification for the Conference League group stage in 2022 would be worth a £3milllion profit alone. That figure would likely have been higher if the team had returned in 2023 having already made significant investment required to compete at such a stage.

Fans will point to staff costs of £15million, an increase of more than £4million, and ask the question as to why the team are not performing better than clubs with a much smaller budget.

Steven Naismith over experience?

Naturally, the issue with on-field performances, which stretch back to last season, will lead to questions around the appointment of Steven Naismith. It is clear from reading fans' views on social media or hearing supporters at games there are growing elements of the crowd who have doubts over the management and question the original appointment.

Equally there are fans who were supportive of Naismith's appointment and want the head coach to be given time. 

There will likely be a question of the board regarding chief executive Andrew McKinlay's comments over hiring a proven winner as a manager only to then appoint an inexperienced head coach. 

Without trying to predict an answer, Naismith, who won the manager of the month award for November, was viewed as an appealing option following his seven-game interim spell where the team's style improved. In addition, his work in the academy and with the B team certainly counted in his favour as the club look to improve the pathway to the first-team when it comes to producing its own talent. However, a front-foot style of play has not been seen with the team having scored fewer goals than games played in the league.

READ MORE: How Steven Naismith landed Hearts job - presentation, experience, style

James Anderson's philanthropy?

On top of the money generated by the Foundation of Hearts, around £25million has been donated by benefactors in the last six years or so. Hearts are in a very fortunate position in that they have someone as generous as they are successful on the club's board as the principal benefactor James Anderson.

There was a donation of more than £4.5million from benefactors - excluding the £1.6million from the Foundation - in the most recent set of accounts. It allowed the club to post a six-figure profit. There will be those that query the practice of a profit only being posted thanks to a very generous donation following a record year of turnover which eclipsed £20million.

Hearts take account of donations when it comes to financial planning purposes. Anderson's donations go into different areas of the club. For example, allowing the club to carry MND Scotland as the front of shirt sponsor.

The club confirmed in the accounts that "directors have prepared cash flow projections through to 30 September 2024. The projections include: The committed long-term support of the company’s principal benefactor". Still, there may well be fans curious as to how long Anderson's support will continue and whether he is satisfied with the return on his philanthropy.

Aside from benefctor income, it should be noted Hearts' turnover has increased significantly from 2014 when it was just £6.55million. It included a strong commerical performance with a £2.1million increase.

What return will the Tynecastle Park Hotel provide?

On Friday, Hearts announced plans to launch the Tynecastle Park Hotel in early 2024. It is a project which has prompted consternation amongst the club's support. A view that the club are too busy concentrating on off-field matters rather than on-field matters.

It is important for any club, no matter how big or small, that they don't let what happens on the field sway their activity off of it. That's the nature of a football club as a business in 2023. It is important that Hearts continue to look at different areas and avenues to generate revenue. After all, benefactor donations are not going to be around forever. 

The development of the hotel shouldn't be seen as a negative. It is far better than the second floor of the new Main Stand remaining empty. Football clubs, like any business, are able to multitask in what they do.

What may be of interest to shareholders is the costs involved and the projections regarding how much it will bring into the club going forward.

How important is the Scottish market?

Recruitment. It is an area of the club which has provoked plenty of debate, discussion and focus in general. It is one of the sporting director's different remits, which include the academy, women's team and football operations in general, such as sport science. Joe Savage explained the process of recruitment in an interview with Hearts Standard earlier this season.

There could be a variety of questions from the floor regarding the club's recruitment but one particular area which has been a topic amongst fans in signing players from other clubs in Scotland.

"Sometimes you can’t get them because other teams want too much money or sometimes the player or agent wants too much money and you can’t afford them," Savage said previously. 

Hearts have not ignored the domestic market having brought in Alan Forrest, Zander Clark, Alex Lowry and Lewis Neilson across the past two seasons. And there are a number of interesting individuals approaching the last six months of their deal in the Scottish Premiership.

READ MORE: How recruitment works at Hearts and the transfer process

What will the January transfer window bring?

Hearts have already made inroads with players entering the final six months of their contracts. Liam Boyce has triggered an extension, while Beni Baningime and Craig Halkett have been offered deals.

Fans will be expected to ask about incomings with right-back understood to be a key area to strengthen. On the flipside there will no doubt be a question regarding the club's top scorer. Lawrence Shankland is expected to garner interest but with 18 months left on his deal Hearts are in a strong position to negotiate or reject offers.

The link with Rangers is never far away and could ramp up following news Danilo is set to be missing for a sustained period through injury. The AGM could see Hearts' stance over one of their most prized assets be spelled out.

Player trading is still an important focus for the club. This year's account showed a £370,000 gain on player sales. The club will likely want to follow Aberdeen who have raised significant revenue through selling players in the last couple of years.

READ MORE: The 6 Hearts stars amongst the Premiership's best players

The FOH influence?

The focus of the Foundation of Hearts AGM will be around influence. How much influence the Foundation, the club's majority shareholder, has over key decisions? And should the FOH possess more influence?

Those involved with the organisation will be well aware of fan feeling regarding the relationship with the board and the belief that the club's owners should have more of a say in key decisions and the direction of the club.

The Foundation has two members on the club board as directors. They stay "close to the activities of the club and its board" with regular conversations.

Chairman Gerry Mallon noted in the FOH accounts: "As the largest shareholder of Heart of Midlothian, and as a club which is 'fan owned, not fan run' it is critically important that we remain confident in the capability of the club board and its strategy. I am pleased to say that we remain confident that the club board and management are developing it in a way which is conducive both to the success on the pitch, but also long term financial stability, and with responsibility towards our communities."

There is every chance it will be communicated from members that there is a desire for the Foundation of Hearts to have more power at Hearts as the majority shareholder.

READ MORE: Exclusive: What next for Foundation of Hearts: Pledge target, board changes, fan opinion

What next?

The Foundation, through Mallon, has been vocal in its aims to increase the number of pledgers to 15,000 and the annual contribution to the club to £2million. Members will want to hear the plans behind how the organisation aims to achieve that. 

Pledger numbers have largely stayed between 8,000-9,000. It is hoped the plans around a Family Pledge and a long-awaited new website, due to launch in early 2024, will help build on that. 

One area the Foundation has keen to stress as one for improvement is the communication with the club's owners. The FOH will appoint a board member to replace Donald Cumming who is stepping down. Both candidates, Gary Cowen QC and Euan Tripp, spoke to Hearts Standard about the need for greater engagement with pledgers.

It is set to be a fascinating day in Gorgie with plenty of emotion and feeling as everyone involved is keen to see Heart of Midlothian be the very best football club it can be. It is a chance for shareholders, fans and members to have their say and ask key and important questions to those running the club.