THE feelgood factor was at play again at Tynecastle yesterday when Ann Budge, owner of the SPFL Championship leaders Hearts, revealed how they have effectively cleared all of their £575,000 football debt.

With the help of the supporters group Foundation of Hearts - which last night revealed the name of the director-elect who will complete the make-up of its six-man board - the club were left to pick up the tab following their successful exit from administration in June.

As well as money owed to current and former players, Hearts were also in arrears to clubs such as Liverpool (£46,600), Stenhousemuir (£12,000) and Musselburgh juniors (£5800).

As part of the agreement with Budge, the Foundation, who will be handed her majority share­holding within three-to-five years, transferred an immediate £1m at the completion of the Company Voluntary Arrangement.

Hearts' financial position has also been improved by supporters buying more than 12,500 season tickets and Budge admits only £23,000 of the club's football debt will be outstanding beyond November.

In a question and answer session with the popular online fans forum Jambos Kickback, Budge said: "The real figure was closer to £575,000. All current players were paid in full at the start of the summer and the majority of former players have now also been paid in full.

"A payments schedule was agreed and only two former players have any outstanding amounts due from the previous regime. Those final amounts will be settled at the end of this month. All players were very understanding and accommodating, with one former player waiving his right to the amount due, expressing his wish to help the club.

"Debts due to other clubs have also been largely cleared, with the exception of a final instalment of £23,000, which is due to be paid next season. In summary, by 30th November, only £23,000 will remain to be paid."

Nominations for the sixth place on FoH's board of directors closed on October 28, with only one candidate, Barry McGonagle, coming forward. A qualified chartered accountant who graduated in economics from Edinburgh University in 2007, McGonagle has worked both in professional practice and in industry, and is currently a financial reporting analyst with one of Scotland's leading technology businesses.

Since McGonagle is unopposed, an ordinary resolution to approve his election as a director will be laid before the annual meeting at Tynecastle on December 11.

Across the city, Hibernian fans, backed by club legend Pat Stanton, will today launch a fresh campaign aimed at buying the club from owner Sir Tom Farmer. The new group has been formed since the summer with the apparent endorsement of the umbrella organisation of supporters' clubs, former players, shareholders and the Erin Supporters' Trust, and is seeking 'positive dialogue' with Farmer.

The move comes following a survey conducted by Supporters Direct Scotland that revealed an appetite for change, with the responses of more than 4000 participants indicating that 84% backed greater discussions on fan ownership.

The exact details of the new group's aims will be revealed at its launch in the Hibernian Supporters Association's base near Easter Road at lunchtime today, but it is understood organisers already have potential investors lined up should they be successful in developing their plans.

Other groups are pursuing change, from straightforward takeover to community ownership, but the organisation being launched today is hopeful of bringing all supporters together behind a common goal.