Easter Road finances
Hibs count cost of European failure with £3.9m loss
Hibs’ failure to secure European football has contributed to the club reporting an increased loss of £3.9 million for the year up to June 2023.
The club admitted the financial performance falls “short of our goals”, with Hibs having been knocked out of both the League Cup and Scottish Cup at the first hurdle while finishing fifth in the Premiership.
Turnover at Easter Road rose slightly to £12.4m but staff costs rose by nearly £2m to £10.1m, up from £8.5m, and the wages-to-turnover ratio has increased by 10% to sit at 81%.
The increased loss comes despite bringing in £3.2m from transfers, primarily the sales of Josh Doig to Italian outfit Verona and Kevin Nisbet to Millwall.
The club is confident of an improved financial picture ahead, with US billionaire Bill Foley set to be given the go-ahead for a minority financial investment – thought to be around £6m – at the annual general meeting on 27 February.
“The financial results for the previous year fall short of our goals and show the impact of the lack of sporting success in cups and no European football,” said the club’s strategic report.
“For the current year, the club has performed much better, having reached the play-off stages of the European Conference League, a cup semi-final and further growth from a commercial perspective.
“Based on that, the club expects to have record-breaking revenue for the year ending 30 June 2024. For the period to 31 December 2023, the club has produced positive earnings before interest and amortisation, inclusive of gains from player-trading and maintained a staff-to-turnover of 65 per cent.”