Financial Turmoil at Hibernian: A Deep Dive into the £7.2m Loss Despite European Earnings
Explore the financial struggles of Hibernian FC as they report a £7.2m loss, despite significant investments and European match revenues.
Hibernian FC, a prominent name in Scottish football, has recently disclosed a staggering £7.2m loss for the fiscal year ending June 2024. This figure nearly doubles the previous year's losses of £3.8m, despite a 30% increase in turnover to £15.9m.
Key Financial Highlights
- Management Changes: The club saw the departure of managers Lee Johnson and Nick Montgomery, which had a significant six-figure financial impact.
- Stadium Upgrades: Investments in Easter Road stadium, including a safe-standing area, floodlights, and hospitality suites, exceeded £3m.
- Recruitment Strategy: The club acknowledges a poor recruitment strategy leading to a significant overspend and a downturn in performance.
Staff and Player Costs
- Staff Costs: Increased by more than £2m, with the wages to turnover ratio slightly dipping to 78%.
- Player Sales: Generated a £1m profit from player sales.
European Ventures
Hibernian's journey in the Conference League qualifiers against Inter Club D'Escaldes and Lucern ended with a knockout by Premier League club Aston Villa, contributing to additional income.
Shareholder Support
- Gordon Family: The US-based Gordon family, holding controlling shares, continues to support the club financially.
- Ben Kensell's Departure: The chief executive, instrumental in bringing in Bournemouth owner Bill Foley and his Black Knight consortium, departed after more than three years.
Future Outlook
Hibernian warns that the financial year ending June 2025 will remain challenging, with no European football expected. The club plans to focus on a tighter playing budget as several players' contracts expire at the end of this season.
Shareholder Contributions
Donations from shareholders were allocated to support the women's team and the signing of striker Dylan Vente, currently on loan at PEC Zwolle in the Netherlands.
Annual General Meeting
Hibs will hold their annual general meeting at Easter Road on 25 February, where further financial strategies and updates will be discussed.
For more detailed analysis and updates, visit our Hibs page.
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