HEARTS ANNOUNCE LOSS
The club directors discussed the situation in a meeting called to look over the 17 applications they have reported to have received for the vacant managers job following the departure of Jim Jefferies.
The Scottish Media Group invested £8 million last year, but this has been spent on players and wages. This increase in expenditure has led to the loss and the new boss will have to deal with this as well as a smaller squad.
"We spent the money knowing it would make our deficit worse or at least hold it as was," said chief executive Chris Robinson.
"It would all depend on what income would be, whether we would see better crowds and progression in tournaments and league position.
"Although we did quite well on the field there was no increase in crowds and in fact they went down, although we finished third and qualified for Europe."
The losses do not take into account the £1.75 received for Gary Naysmith's move to Everton while half of the Scottish Media Group money is being kept back for the youth academy at Riccarton.
Meanwhile, the board members are discussing the applications for the new boss and the club are expected to make an announcement within ten days.
"The applicants were to be looked at and considered," said a club spokesman. "However, it could be that none of the people who have applied are suitable. It depends on the meeting.
