Hearts' extra income hits £41m: How money is spent at Tynecastle with benefactor agreement and Foundation cash

Donations from wealthy individuals and ordinary fans amount to a substantial sum

Dig deep into Hearts' annual accounts over the last decade and it is clear the club are in a unique and enviable position financially. Benefactor donations combined with Foundation of Hearts contributions exceed £40m in total, providing substantial extra income in the Gorgie quest to become Scottish football's undisputed third force on and off the pitch.

No other club in the country boasts such additional revenue separate from season ticket sales, commercial activity, sponsorship and footballing prize money. It is verification of the strong monetary footing Hearts now stand upon thanks to sound business management since Ann Budge took charge back in 2014.

To be precise, £41,373,478 has been donated to the Tynecastle coffers since 2013 between FoH and the club's benefactors. This figure is broken down below, with 38 per cent of it coming from Hearts supporters via the Foundation and benefactors providing the remaining 62 per cent of their own volition.

The Foundation collects cash pledges from around 8,000 fans every month, which are then passed on to the club. FoH now owns Hearts on behalf of its members and the running total of their contributions is currently £15,908,478. They are rightly referred to as the most successful supporter movement in Scottish football history.

Benefactors first came to the attention back in 2017. We now know that the Edinburgh-based investment fund manager James Anderson, along with wife Morag, is Hearts' principal benefactor, but for several years he enjoyed anonymity whilst furnishing the club with large sums of money.

The initial sign of benefactor involvement came in Hearts' accounts for the year to 30 June, 2017, which reported an additional £2.5m of "funds from an exceptional donation". In the 2018 figures, there was an "exceptional donation towards player costs" of £1m, plus a separate "exceptional donation" of £2m. In 2019, another £1m "exceptional donation towards player costs", and again a separate "exceptional donation" - this time £2.25m.

The Covid-19 pandemic in spring 2020 did not impact benefactor generosity in any way. Hearts' accounts for the year to 30 June, 2020, included £3m "donations from benefactor". By then, Anderson's name had reached the public domain through a media report. Interestingly, in the very next column of that financial statement, the previous year's benefactor donation from 2019 was reported as a round figure of £3.25m. This confirmed that the £1m "exceptional donation towards player costs" was from benefactors.

In 2021, things crept up a notch. Anderson joined the Hearts board in July as an independent non-executive director. Club accounts that year reported "donations from benefactors" as £4.715m. The following year, it was £4.460m. Financial results emerging from Tynecastle on Tuesday for the year to 30 June, 2023, include "donations from benefactors" of £4.540m.

So, Hearts have now received £25,465,000 in financial support from well-off philanthropists since 2017. Added to the Foundation's outstanding efforts since 2013, the combined total breached the £40m barrier this year. Other clubs can only dream of such backing, although with it comes increased expectation as Hearts look to secure third place in the Scottish Premiership each season.

Monies are distributed evenly around the business and spent in a variety of areas, though. Those assuming the first-team manager has several million pounds extra on his budget each year would be wrong. Football, stadium infrastructure, community projects and an innovation centre all benefit from the added revenue.

Hearts built a new main stand which opened in November 2018 and upgraded their stadium last year to comply with UEFA regulations for the Europa Conference League group phase. The Tynecastle Park Hotel is due to open next year in addition to funding the men's team, women's team and a youth academy for children of all ages, plus community activities.

Continued donations from Anderson and other benefactors would therefore be most welcome. Tuesday's accounts stated Hearts' cash-flow projections through to 30 September, 2024, which include "the committed long-term support of the company's principal benefactor". He does not appear to be going anywhere soon.

An obvious question is: "What happens when the philanthropy stops?" Hearts intend to budget accordingly when that day comes and reduce their outgoings. They posted a moderate £298,000 profit on Tuesday despite record turnover of £20.8m. Benefactor donations are agreed a year in advance and factored into the financial plan, so if they stop then budgets would need adjusted.

The Edinburgh club expressed their gratitude within Tuesday's financial statement. "Financially, this was an excellent year for the club - with record revenues, reinvested in further developing our playing squad and our staff teams, continuing to improve the club’s infrastructure, and enhancing Tynecastle Park," it read.

"We are, as always, extremely grateful for the support we receive from our supporters, shareholders, benefactors, sponsors, partners, the Foundation of Hearts Limited and our players and employees. The board would like to express its thanks to every one of these groups for their continued support."