Hearts AGM: Instant reaction as club board questioned

Below are some of the key topics explored across two and a half hours which included questions from the shareholders present.

Naismith appointment

Chief executive Andrew McKinlay tackled a number of topics during his address. One of which was around the appointment of Steven Naismith.

He felt, despite winning just two of seven games as interim boss, the style of play and mitigating factors, such as red cards, in some games meant that Naismith should have been considered for the permanent post. McKinlay also noted the reaction to the final game of the season, the draw with Hibs while playing with 10 men to finish fourth, played a part in the "decision making".

He said: "I think it is fair to say the atmosphere and fan reaction at the end of the final game against Hibs added to the attitude of the team and the fighting spirit of everyone at the end suggested that many of the support, I'm not saying all, were behind the management team. This was undoubtedly something the board were aware of as part of the decision making.”

McKinlay also the club spoke about the difficulties of appointing a manager and revealed other candidates were sounded out.

"There does feel there is sometimes a misplaced sense of who we can legitimately attract," he said. "We were also acutely aware of this through private discussions we had with Aberdeen as they had gone through the same process. I can confirm that we directly or indirectly sounded out a number of other possible candidates."

Naismith was seen as the least risky option despite the issue around his lack of pro licence which meant Frankie McAvoy had to be appointed as head coach originally. McKinlay stressed that Naismith wanted both McAvoy and Gordon Forrest as part of his management team and that there was "no confusion" around the club as to who was in charge. 

"We fully understood the risks this presented and we were of the opinion that there was not another immediately available option which was definitely less risky and more attractive," McKinlay said.

One of the shareholder asked “are the board happy with the management team? The football on the pitch is horrific”.

"I can assure you it wasn't the cheap or easy option," Budge said.

McKinlay added: "We understand the strength of feeling around it and we take that on board."

Another question raised a point from former Hearts player Michael Stewart which suggested the club had been riddled with failure. The question also probed why the club had replaced the most successful manager of the last 20 years with a rookie.

"I know how much stick we took for giving Robbie Neilson the job and then bringing him back," Budge noted. "I'm proud of giving people the chance to make things work their way.

First-team performance

"Despite suggestions that we as a board don't give enough importance to footballing outcomes. I and we are in absolute no doubt that performance and results of the men's first team are fundamentally important to everything we do as a club."

The difficulty of the season was addressed by McKinlay. He noted fan feeling around results and the performances of the first-team and admitted he had barely spoken since driving back from Aberdeen on Saturday following the 2-1 loss.

The chief executive mentioned the start to the campaign with playing Thursday-Sunday but also stressed the club have a game in hand which, if they won against Dundee, would put the team third in the Premiership.

"We have one point less than we did after 16 games last season," he said. "We have a run of fixtures with the opportunity to do well. Please don't think for one minute that I am saying all is good and I am enjoying watching many of our games. I and the rest of the board watch the same games as everyone else does."

When questions came from the floor one fan, who supported Naismith's appointment, said he was "completely underwhelmed by what I see on a Saturday" It was met by applause. He asked about the club's belief that the head coach can turn it around.

"I base it on we did have a four-game unbeaten run," McKinlay said. "Steven is currently the manager of the month. You can laugh at it but it is a fact. Steven and Robbie are football people. They both understand it's a results business. Robbie said to me 'I know why you made that decision, I understand it'. Steven gets it as well. I can't say everything is going to be brilliant. I understand your frustrations."

Budge added: "One of the things Steven talks about a lot is mentality. He talks about the players having the right mentality. On the big stage something doesn't quite work for them. I have confidence that Steven and his management team are doing everything in their power to get results on the pitch."

"It would help if they passed the ball forward," one fan mused.

Another raised a point questioning Naismith's ability to change the game, pointing to the recent loss at Aberdeen. It was a view sporting director Joe Savage disagreed with, pointing to the victory over Livingston when Naismith brought Kenneth Vargas and Jorge Grant which helped the team win.

Player trading

McKinlay revealed the club had offers for players which would have represented a profit but the club felt they were too low. It is important to the club to sell at the right time for the right amount.

The chief executive said he would find it hard to sleep if the club's model was to rely on player trading.

Recruitment

There was a question written in directed at Savage, asking why the club have gone around the world to sign Yutaro Oda, Kyosuke Tagawa and Kenneth Vargas.

"We think they are good players and believe they strengthen the team," he said. "We feel they have got the ability. We feel it is markets we wanted to explore. We look everywhere to make us the best we can be."

The second part of the question asked about Kilmarnock star Danny Armstrong and whether he was considered. Savage revealed the player's price tag is seven figures.

"We definitely look in Scotland, I can promise you that," he said.

Another fan directed a question to Savage asking whether the management team were good enough to get their message across in terms of what they want or if it was an issue with the players.

"I will take the criticism on board," he admitted. "Maybe some of the players we've signed have not met the standards we've set. This is a learning curve for me and I take the criticism on board. I've deserved the criticism. It's not Steven or the coaching staff's fault that they aren't carrying it out. He wants to attack.

"There are rumours out there that I didn't want Steven as manager, that I don't like him and he doesn't like me. That's a load of rubbish. I will take the criticism forward and try to make sure we sign better players who you feel are fit to wear the Hearts jersey."

Lawrence Shankland

As expected, a shareholder asked about Lawrence Shankland and the links with Rangers.

"We are not looking to sell Lawrence in January," McKinlay said. "Given his obvious importance to the team it would take an exceptional bid for us to even consider it. We have no need as a club to sell players and we would only do so if we recieve a valuation that we think is appropriate.

"We have had no contact from anyone, any club, any agent, his agent or any other agent to suggest that anyone is going to bid for Lawrence in January."

January window

Responding to a question from a shareholder, Savage said he knows "we need a right-back". He also revealed that Naismith feels the first-team squad is currently too big and wants to promote more youth players into the first-team squad.

Referees

A question came from the floor regarding the "preponderance of referees from the west coast". McKinlay said he had "never witnessed any sign of corruption in Scottish football", including during six years at the Scottish FA where the then head of referees John Fleming reported to him.

Next year's budget

Hearts have budgeted for a slight drop in revenue, from the record turnover of £20.8million recorded in the 2022/23 accounts to £19.3million in the 2023/24 account. Donations are set to decrease by £500,000 to £5.7million. Staff costs, however, will ris from £15.4million to £15.7million.

Jacqui Duncan, the club's finance director, revealed budgeting was similar but without the income from European football. She demonstrated a growth of 220 per cent across a 10 year period at Hearts. She also stressed that football costs outstrip football income in terms of money brought in from league performance, cup involvement and European football.

"We do need other revenue streams to support the football side," Duncan said. "We are a football club and we are investing in football."

In addition, McKinlay confirmed the club are in discussions over a new front of shirt sponsor.

Women's football

McKinlay made sure to mention the women's team, noting he knows "not everyone likes women's football".

The chief executive revealed it is the biggest area for growth in football today and that many of the club's sponsors are "keen to work" with the club because of women's football. He said it is "right as a club to commit resources to this area".