THE Hearts fan who helped draw up the Tynecastle club’s current corporate governance structure has defended Ann Budge’s decision to cut players’ wages - and predicted many of their Scottish rivals will be forced to take exactly the same drastic measure in the coming months.

The majority of Ladbrokes Premiership clubs, including Aberdeen, Celtic, Hibernian and Rangers, have agreed to defer salaries while there is no competitive football being played due to the coronavirus pandemic.

However, Budge has repeatedly insisted that Hearts’ unique ownership model, coupled with the fact they pay high basic wages and make limited use of bonuses, mean that option is unrealistic for the relegation-threatened Gorgie outfit.

Every member of Daniel Stendel’s squad has now agreed to accept cuts of between 10 and 30 per cent – except club captain Steven Naismith who has taken a 50 per cent reduction – while the shutdown is in place following protracted negotiations.

Budge was criticised for refusing to agree deferrals as well as for telling players she could invoke Clause 12 in the standard SPFL contract, which allows clubs to suspend wages entirely when football has been shut down, and deny them their wages altogether.

Yet, Alex Mackie, a founder and ex-chairman of the Foundation of Hearts fan ownership group and a member of a working group which put in place the current corporate structure, believes she had no alternative.

“When Ann took over she set up an agreement with the foundation to hand the shares over so the club would be fan owned,” said Mackie. “Other clubs are owned by individuals, Hearts are a collective, a community club.

“During the Romanov era, Hearts was run by one person, it was totally unsustainable and we were racking up huge debts, upwards of £30m. The model we have developed mean it has to be sustainable and has to have effective corporate governance at its centre.

“There is nothing too complicated about it. The model is clear. Ann as to make sure when the shares are handed over the club is in pristine condition, financially secure and sustainable. We have to make sure the club is still viable.”

Asked about Budge’s decision to ask Hearts players to accept pay cuts instead of deferrals, Mackie said: “She had no choice. To the best of my knowledge, she has talked to the players and persuaded them of the reality.

“We have to take cognisance of the medical evidence. I think it will take six months to a year before we get back to where we were. I think it is just a matter of time before other clubs have to say to their players ‘we’re going to have to do the same thing’.”

The Foundation of Hearts have ploughed a total of £10m into the Tynecastle club since they started collecting direct debit donations back in 2013 and in recent weeks Budge has been accused of squandering that money by spending excessively and recklessly on a bloated and mediocre squad.

But Mackie, an Edinburgh accountant, rejected the assertion that players were paying the price for the former Scottish Entrepreneur of the Year’s improvidence.

“It has only been mentioned now there is this pandemic,” he said. “Ann admitted at the AGM that mistakes were made. Perhaps there were more players than they would have wanted. But we were riddled with injuries, were fighting a relegation battle and had to get replacements in.

“You can’t accuse Ann of any poor financial planning. My understanding is Hearts have fairly strong budgetary control arrangements and could predict their income and expenditure with a fair degree of certainty.

“She had to move quickly based on her anticipation of how the future will turn out. She had to mitigate all risks. The main risk for Hearts is continued existence. It will continue to exist as long as the foundation membership continues to pledge and pay their monthly membership.”

The Foundation of Hearts has over 8,000 members – they lay claim to being the most successful fan ownership group in Scotland - but Mackie has still encouraged those fans who have not signed up to do so now and help to ensure the capital club survive the coronavirus crisis unscathed.

“I don’t know the precise figures, but I think we are handing over upwards of £125,000 a month and that will help to sustain us,” he said. “I bet other clubs wish they had a foundation pumping money in to them. Every club in Scotland is struggling. It is the most important source of non-playing income and we are not playing.

“But the rest of the Hearts fans can’t rely on the foundation to sustain the club. All the Hearts fans who aren’t in the foundation now have to come good and set up a direct debit, enhance the cash flow to the club and help it through this period. Hearts are in a unique position because they have a ready-made source of additional income.

“Providing they can afford it, Hearts fans should be getting on the foundation website, making a pledge and becoming members of the club. Cash flow is king right now. So start paying a monthly subscription. If £10 a month is too much, £5 a month might be better.

“If the fans want to help the club the foundation is the perfect avenue. Everything is so uncertain just now. It is unlikely we will have football in front of crowds any time this year. It is like Dunkirk. Let’s get the boats across.”