Hibernian cite lack of European football and cup runs as reason for increased losses

Hibernian admitted they fell short of their goals after their latest accounts showed a loss of £3.9 million for the year up to June 2023.

That figure represents a rise of £2.4m on the £1.5m loss for 2022, which the cinch Premiership club attributed partly to the lack of European football last season and the fact they exited both domestic cup competitions at the first hurdle under Lee Johnson.

Wages to turnover ratio rose to 81 per cent from 71 per cent, with staff costs up from £8.5m the previous year to £10.1m.

Hibs said this was down to increased investment in the team last term in an effort to improve their on-field performance after finishing eighth in the table the previous season while sacking two managers, Jack Ross and Shaun Maloney.

The financial picture was made slightly brighter by the sales of Josh Doig to Verona in July 2022 and Kevin Nisbet to Millwall in June 2023, while Hibs will benefit from a sell-on fee following Doig’s move from Verona to Sassuolo last month.

The club also hold a sell-on agreement with Millwall over Nisbet and with Watford, who purchased Ryan Porteous for a nominal amount in January 2023.

Hibs’ predicament looks likely to improve, with an estimated £6m investment from American billionaire Bill Foley, the owner of Bournemouth, expected to get the green light from shareholders at the club’s annual general meeting, which has been called for February 27.

The Edinburgh club expect their next accounts to show them in better health.

“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,” read Hibs’ 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.”