Hearts stars face further 25 per cent pay cut due to relegation clause

A football agent has said it is “hellish” for players that clubs can cut or stop wages altogether while the SPFL is suspended.
Hearts owner Ann Budge has asked players and staff to take a 50 per cent pay cut. Picture: Ross Parker/SNSHearts owner Ann Budge has asked players and staff to take a 50 per cent pay cut. Picture: Ross Parker/SNS
Hearts owner Ann Budge has asked players and staff to take a 50 per cent pay cut. Picture: Ross Parker/SNS

The players’ representative, who did not want to be named, admitted that clubs were within their legal rights to do so but added: “It is not a good situation to be in and it is hellish for the players.

“But the truth is, because the league has been suspended by the league, they are able to suspend all payments to the players and that is the same for every player throughout Scotland.

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“The clubs don’t have to pay them a penny but that would be really, really bad and it would be really harsh to do that.”

The disruption caused by the coronavirus pandemic is taking a heavy financial toll on football around the world, with some inside the game predicting that well over a dozen clubs in the UK could lose the fight to stay afloat.

Hearts have been one of the first to take preventative measures, owner Ann Budge asking all full-time members of staff, including the management and players, to take a 50 per cent wage cut.

Anyone unable or unwilling to accept such a cut will be allowed to terminate their contract.

Many Hearts players are said to be shocked and their union, PFA Scotland, is adamant that “this exercise cannot be allowed to be a mechanism for selective cancellation of valid employment contracts.”

Players already had a relegation clause in their contract and, with Hearts bottom of the Premiership when the league was suspended, they are demanding that is removed before they agree to the pay cut.

If Hearts were to go down, they would have been facing a further 25 per cent cut in their salaries.

The agent says Tynecastle players and staff are in a difficult position due to the little-known suspension clause in contracts and is concerned that other SPFL sides will follow Hearts’ lead.

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Hearts claim to have already lost £1 million in revenue from unplayed games and other activities at Tynecastle are unable to take place, further cutting revenue.

A standard contract clause states: “In the event of the Scottish FA deciding that the game shall be suspended, either entirely or in any district or districts as provided for in the articles of association of the Scottish FA, this Agreement shall be correspondingly suspended, unless the Club is exempted from such suspension or the Club otherwise determines.”

While stunned by the severity of the cuts and how quickly the club have activated the loophole, it is understood that some players are ready to take the financial blow and accept the new terms.

Others have said they won’t, although with leagues all around the world in cold storage, their representatives have highlighted the difficulty in finding other clubs willing to take them on at the moment.

Some will be sought after, meaning that Hearts could lose their prize assets for nothing, while those who remain will have had their morale sapped by the pay cuts and the possibility that any league resumption will be during their normal summer break.

PFA Scotland chief executive Fraser Wishart said: “We would implore the clubs to speak to the players to find achievable and realistic outcomes for the unprecedented situation we find ourselves in rather than serving ultimatums.

“If we all work together we can find solutions which both sides are happy with. We know that, on the players’ side, there is a willingness to do this. They will do their bit and consider all reasonable options including wage reductions or deferrals.

“However, they would only do so after full financial disclosure by the clubs. This is only fair and would, in the interests of transparency, allow fully informed financial decisions. It follows that there would also need to be clarity and assurances on future spending in the next transfer window from all clubs.”

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