Hibs thank staff and fans as they take steps to protect club

No-one in football is relishing the current financial crisis but Hibernian have taken steps to ensure they will make it through the other side, without alienating any of their workforce or fans.

Hibs players have agreed to a 20-50 per cent wage deferral but, in the long-term, they will not be left out of pocket. Picture: Bill Murray/SNS Group

There will be an immediate impact on personnel with staff – including the players, manager Jack Ross and his coaches – agreeing to a 20-50 per cent wage deferral but, in the long-term, they will not be left out of pocket, with the Easter Road hierarchy agreeing to reimburse any money held in abeyance by the summer of 2021.

Speaking last month, owner Ron Gordon warned that the abrupt loss of revenue caused by the league shutdown and ongoing uncertainty surrounding the game due to the global coronavirus crisis would lead to some difficult decisions being made.

But he promised that “every decision we make will be with two key priorities in mind. Firstly to look after our people, and, secondly, to ensure the club remains in as healthy a financial position as 
possible.”

Yesterday the Leith club announced that they had reached mutual agreement with their football and non-football employees by which the majority would be placed in furlough, significantly easing the financial pressure. It will leave a core group of senior managers, ticket office and communications staff to continue working from home to keep the club ticking over and ensure it remains in the best possible shape to progress when normal operations are restored and football business returns to normal, but huge short-term savings have been made

While administrative staff have been asked to absorb 20 per cent cuts for now, the government’s Job Retention Scheme will ensure they receive the remaining 80 per cent of their salaries, up to £2,500 per month for now. Remaining monies owed will be repaid as part of the club’s wage deferral agreement.

The same is true of the football staff, many of the higher earners agreeing to defer 50 per cent of their salaries, the remaining sums being covered by a combination of government and club payments.

It is understood that others will bear less of a financial burden, the club apparently refraining from generalised cuts.

They have instead undergone detailed consultations to ensure different salary levels and circumstances have been taken into account and used a sliding scale, with the agreement of senior players.

But, ensuring a level of goodwill, there have been assurances that no new players will be brought in until every member of staff has been returned to their contracted salary levels.

In a statement detailing the decisions, chief executive Leeann Dempster said that the club was grateful to staff but also thanked supporters who have responded swiftly to season ticket sales for their understanding and help in assisting them through an unprecedented crisis which had robbed all clubs of the opportunity to generate revenue.

“Our main aims through this crisis are to look after our people and our community, and to protect this club for the future,” said Dempster. “We have spoken with staff and our players. They have all been superbly supportive and committed through this whole issue, and we have agreed that we should furlough. Senior staff and players have also agreed to defer a significant percentage of their income. This will help the club manage its finances through this difficult period.

“The chairman has said that the club will repay any shortfall in earnings over an agreed period once things return to normal. The club hopes that taking this action early will ease some of the cashflow pressure we are facing now and in the coming months, allowing us to see this national crisis out without losing any of our people and keeping the club in a good place to compete when football does return to Easter Road.”

It is understood that the deferred wages will be repaid in two instalments, at the end of 2020 and then in June 2021, giving the club time to regroup.

While thanking staff for their understanding and co-operation, Dempster also expressed gratitude to fans who have eschewed the uncertainty of the current global crisis and moved to renew or buy season tickets for the new campaign, whenever that eventually kicks off. She said that they had helped lessen the blow, allowing the club to bring in much-needed revenue.

“We have also seen a magnificent response from supporters, and we are grateful to all of those who have felt able to buy a season ticket and offer this vital support. If you feel able to commit, please do.

“We are also very aware 
that many will not feel able to commit at this time for very understandable reasons… we will be as flexible as we can to help you get your season ticket and we are looking forward to seeing you all back at Easter Road. Finally, we can’t repeat it enough. We are thinking of you, and we hope you are following advice and keeping yourselves and your loved ones safe and well.”

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