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The National (Scotland)
The National (Scotland)
Sport
Robbie Hanratty

Financial setback for Hibernian: £7.2m loss, manager payouts, & poor recruitment

Hibernian have reported a £7.2million loss for the financial year ending June 30, 2024, marking a significant increase from the £3.9m deficit recorded the previous year.

The Edinburgh club's latest financial statements, released ahead of their upcoming Annual General Meeting (AGM), provide insight into both the challenges and areas of growth within their operations.

Despite the overall loss, the club's turnover rose by 28% to £15.9m, up from £12.4m the previous year.

This increase was attributed to higher commercial revenues, ticket sales, and central distributions, with the club's European campaign playing a key role in boosting income.

Additionally, financial contributions from shareholders helped bolster the first-team player budget and provided extra support for the Hibernian Women's Team, who are competing for the SWPL title this season.

However, operating costs soared, rising from £9.2m to £11.6m, with staff expenses increasing by £2.3m. The wage-to-turnover ratio did fall slightly from 81% to 78%, but Hibs' decision to sanction unbudgeted spending in the January transfer window "in an attempt to improve on-field results" added to financial strain.


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The Easter Road side also had to absorb compensation payments for the departures of former head coaches Lee Johnson and Nick Montgomery, along with their respective backroom teams.

Another major setback came when a commercial partner went into liquidation, forcing Hibernian to write off £1m.

Participation in the UEFA Conference League qualifiers had both positive and negative impacts. While the European run contributed to increased revenue, it also led to a sharp rise in travel costs, which exceeded £500,000. The club also highlighted rising energy prices as a continued financial challenge, although steps have been taken to mitigate future price volatility.

Hibernian also made a £3m investment in upgrading Easter Road Stadium. This included a major refurbishment of the Famous Five Stand to improve the matchday experience, as well as creating a dedicated space for the Hibernian Community Foundation. Additionally, rail seating was installed, accessibility for disabled supporters was enhanced, and floodlights were upgraded.

Hibs reported a £1m profit from player trading, largely due to sell-on clauses related to the transfers of Josh Doig from Hellas Verona to Sassuolo and Elias Melkerson to Stromsgodset.

The Scottish Premiership side has now issued a notice to shareholders regarding the Annual General Meeting, set to take place on February 25, 2025, at 6.30pm in the Behind the Goals Sports Bar within the Famous Five Stand at Easter Road. The AGM will include discussions on three key resolutions, covering financial statements and auditor appointments.


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As Hibernian look to move forward from this financial downturn, the focus will now shift to long-term sustainability while continuing efforts to strengthen both the men's and women's squads.

A summary accompanying the report findings said: "The financial results of the 2023/24 season are of course disappointing, and the cumulative results over the previous three seasons have varied from the historical performance of the club.

"The club is very much aware that a poor recruitment strategy has resulted in a significant overspend and a downturn in performances and results, which continues to prove problematic for the financial management of the club.

"The current climate is very challenging for football clubs of a similar size to Hibs, and clubs are often reliant on shareholders or benefactors while trying to increase competitiveness.

"The club has done everything to maximise other revenue streams, and will continue to maximise these revenue streams, but ultimately is reliant on the steadfast support of the shareholders who continue to underwrite losses."

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