Hibs have reported a loss of nearly £4 million despite a club turnover of £12.4 million and a profit of £3.2 million from player sales. The club announced these financial results ahead of next month’s Annual General Meeting (AGM), during which they will seek shareholder approval for Bournemouth billionaire Bill Foley’s investment in the club.
The disappointing financial figures come in the wake of Hibs’ underwhelming performance on the pitch. The team crashed out of the Viaplay Cup at the group stage in Lee Johnson’s first season as manager and suffered an early exit from the Scottish Cup at the hands of bitter rivals Hearts. Hibs identified their lack of success on the field as a major contributing factor to the financial loss, but the sales of players such as Josh Doig to Verona and Kevin Nisbet to Millwall helped offset some of the deficit. However, despite the increase in turnover, the club’s wages to turnover ratio stands at a concerning 81 per cent, significantly higher than the European Club Association’s recommended ratio of 70 per cent.
In their report, the club stated, “Turnover increased by four per cent from the previous year to £12.4 million. This increase was primarily due to performance off the pitch, as the prior year included three matches at Hampden as part of deep runs in the cup. Player trading resulted in a gain of £3.2 million for the year compared to a gain of £2.1 million achieved the previous year. The current year gain is related to Josh Doig and Kevin Nisbet. At the end of June 2023, approximately £2.5 million of this amount was outstanding. The club continues to hold significant sell-on clauses for these sales, as well as Scottish international Ryan Porteous, and therefore feels strong regarding the performance of player trading during the year.”
Despite the financial challenges, Hibs remain optimistic about their ability to manage their finances and continue to invest in the team’s success both on and off the pitch.
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