Gerry Mallon has been the Foundation of Hearts chairman for the last two years and one of two representatives on the club board. Read his election address HERE.
Why are you looking for re-election?
So the Foundation of Hearts is an amazing organisation and it's kind of a unique structure within football. I have thoroughly enjoyed, it hasn't disappointed in the course of the last three years in terms of the role that the Foundation plays within the club and guaranteeing the stability and the future of the club and I feel like I've been able to add some value in terms of the shape and direction of both the Foundation and the club so I'm keen to continue that work.
How would you evaluate where the FOH are now compared to when you first got involved?
I'd say, the last three years have been very much about stabilising the organisation and looking to put in place the right foundations for growth. I think we can point to quite a significant overhaul in terms of our technology and the building of volunteer resources in the shape of the marketing committee that has actually increased our capacity to be able to do things well and to get our message across better. We've both stabilised in terms of the number of members, we've seen some recent growth off the back of the first sets of new promotional activity that we've had, including things like the Foundation Day, and some marketing efforts towards cohorts overseas and people who had been previous pledgers. I think we're ready to broaden that out now into people who have never pledged before and also into the broader families beyond that. So it feels like we're in a strong and stable position with a bit of growth, but with quite a lot to be able to shoot for now and in the future.
The recent financial accounts show a drop in donations from the Foundation. Why do you think that was the case and what steps would you take to address that so you can get it back to a healthier amount?
That represents the full year and natural attrition takes its toll on Foundation members and it's no secret that Foundation pledgers have tended to be at the older end of the age spectrum. You've got other factors as well, like people really feeling the cost-of-living pressure and also people for different reasons maybe don't like some of the performances. All of those things take their toll over time. It's important that the Foundation continues to demonstrate its importance and relevance to all Hearts fans. I think it's that latter bit, the importance and relevance, is where we need to continue to make the case. I think you've seen us over the course of the last few months being a little bit more on the front foot. There was the Foundation Day and some of the marketing campaigns. All of those things have had a cumulative impact in terms of keeping the Foundation in people's minds. Providing funds to the club is one of the two things that the Foundation is important for. The other is being a responsible custodian of the shareholding of the club and making sure that we are behaving as a shareholder in a way which is helping future progress.
The perception among some fans is that the Foundation doesn't have an impact or influence in terms of board decisions. How does the FOH change that perception?
It's really interesting. Whenever things are going well, nobody makes any noise about the role that the Foundation plays. As soon as people aren't happy with what's going on on the pitch, then we see a lot of incoming traffic saying the Foundation should be changing things. I guess that's just the nature of football. The way that we operate is always going to be in a way which is responsible. The Foundation directors of the club board will and should, in my view, always respect the confidentiality of the business that happens in the club boardroom. I know the role that we have played and I can assure people that we've played a strong and firm role in helping the board make the right decisions at the right time. Everybody will have different opinions as to whether those decisions are right and are timely. I think expecting a lot of communication from the Foundation in respect of the confidential discussions of the club board is probably a wrong expectation.
I think it's widely accepted that communication has to improve. What can the FOH do to improve not just that communication but make members feel more engaged?
I would contend that if you look at the communication over the course of the last 12 months, there's been a significant step up compared to previous, both in terms of the things that we've done directly and the social-media presence. I would pay tribute to the members of the marketing team for that in particular. I think I would also say that if I look at the role of the Foundation, which is to make sure that it's being a strong custodian for the shareholding of the club, I'm thinking about the long term of the club and the nature of the business that we do with the club. It's well articulated through the actions and the behaviours of the club and the club board. I don't think that there's much that the Foundation can say which is different from that of the club. Secondly, if you look at the role of the Foundation in terms of maximising the donations to the club, there's plenty that we say about the money that we're raising, how it's being spent and the future activities that we're undertaking in order to do that. I think we can turn up the volume on all of those things, but I think there's probably, if people are expecting more of the ins and outs of the business of the club, I would still contend that it's the club that will provide that information rather than the Foundation. It's the club that people are really interested in when it comes to those things.
People will look at it thinking they're wanting a bit more back from the Foundation with their pledge. How can there be a way that there can be further engagement, whether it's events or incentives for people to get involved?
There's plenty more that we can do. First of all, we're a volunteer-led organisation and there's a limit to the capacity that we have, and I think we've probably been capacity constrained in the past. I think with an enhanced number of volunteers now, there's the opportunity for us to grow and develop that further through various consultation events, through the likes of the 90 Minutes, which we had with the coaches last year. I think we're keen to do something similar with a new coaching team. I think there's more that we can do in that regard. I do not want to over-promise something which is unrealistic in relation to the fact that it's a matter which has become a bit of a cliché and an irritant to some people, that the club is fan-owned but not fan-run. I think some of what people are articulating is the desire to be more involved in the running of the club or have more transparency over the running of the club. The point that I just want to make is that the Foundation doesn't run the club and it's not going to seek to run the club.
On the running of the club, what have you learned from your role on the club board over the last couple of years?
That's a really big question. A few things that are really clear. We are an incredibly strong club, the third strongest and financially one of the best-run clubs, if not the best-run club, in Scotland. I think we've got a tremendous opportunity to be able to grow and develop even further. I think there are probably a couple of bits of the business where we can still improve. I think commercially we've done incredibly well. Player trading has probably been one that's really disappointed over the course of the last number of years. But I'm incredibly optimistic that we're about to turn a very big corner on that front. We probably have got an opportunity to make more money out of the broader catering, hospitality, hotel trade that we've got now. But again, I feel like we're well set up to do well out of that now, particularly completing the investment in the hotel. So there's a lot to be optimistic about in terms of the club.
If I compare us to other football clubs, almost everywhere you see significant shortfalls, which tend to be met by owners or other benefactors. While people point to benefactor income as something which is an indication that we're living beyond our means, I would contend that we know exactly what we're doing in terms of the expenditure of the club and we're putting money into exactly the right places to make sure that we'll be sustainable in the long term. I feel like we're very well done.
Is there an argument to be made for a better balance where members can feel more engaged with decisions at the club? Whether there's increased communication or reaching out over certain issues?
I think there's lots more that we can do to allow Foundation members to feel like they've got a say in matters that are relevant to them. I think it's important for them as owners. I think there are also other categories of fans as well. I think that rightly the club will also want to be involved in consulting on things. I expect the Foundation have a very big say, but I also expect season ticket holders, for example, and other fan groups to have a say. I think the Foundation will definitely play by far the strongest rule.
You mentioned in your address that recent events show that the FOH have broadly the right model. Are you able to expand on that or explain what you mean by broadly the right model?
That we need to be careful that we ensure that we've got the right level of stability within the organisation. We look later in the year when we get to the AGM about some potential changes to our articles to make sure that we've got all of the governance around how we would deal with any future scenarios regarding investment, for example, that might present themselves. Just widely speculating, just to make sure that we can find a way that we continue to exercise that shareholder approach responsibly and that we continue to protect fan ownership and majority fan ownership for the long term. But at the same time don't bypass any opportunities that there might be for other investors to come on board, but the right investors.
Finally, if re-elected, what is important to you for the Foundation in the future?
The most important thing is the stability of the club and our ability to be able to make the most of what I think we now have, which is a fantastic opportunity. Clearly there are some things which are known to people and some things which are not necessarily in the public domain, but when I look at all of the things that I know about, we've got a bit of a once-in-a-generation opportunity for the club to put itself in an amazing position.
Read the rules here