How Hibs lost £7.1m in a single year as alarming financial figures explained

Hibs have posted a £7.1million loss in an alarming set of annual accounts for the year to June 2024.

The huge deficit, which is nearly double the previous year's losses of £3.8m, comes despite a signifcant increase in turnover, which rose by almost 30 per cent to £15.9m.

Hibs blamed two managerial sackings, an overspend on player recruitment and poor performance on the pitch for the major shortfall, which the Gordon family, who own the club, has promised to underwrite.

Hibs have posted a £7.1million loss for the year to June 2024. | SNS Group

The wage bill rose by £2.3m to £11.2m while operating costs also increased from £9.2m to £11.6m. Over £3m was spent on upgrades to Easter Road stadium, including a safe-standing area, new floodlights and revamped hospitality suites, while £1m had to be written off when a commercial partner went into liquidation.

Predicting significant losses for the year back in September, Ian Gordon, the son of late chairman Ron Gordon, assured supporters that his family would be covering the losses.

“So just for clarity on that, the family are just going to essentially write off any money that's an overspend on the football side," he said. "That is something that, as a family, we're comfortable with at this time.”

Hibs, who became part of a multi-club network when they sold a 25 per cent stake to Bill Foley's Black Knights Group last year, say they paid "significant" six-figure sums in compensation to axed managers Lee Johnson and Nick Montgomery. The board also sanctioned “an unbudgeted player spend in the January transfer window” last year which resulted in the high-profile signings of Myziane Maolida and Emiliano Marcondes. A £1m profit in transfer fees was made, attributed mainly to receiving a sell-on fee when Josh Doig moved from Hellas Verona to Sassuolo Calcio and the sale of Elias Melkerson to Stromsgodset.

Hibs, who parted company with CEO Ben Kensell last month, will hold their annual general meeting at Easter Road on February 25 and while the club hopes to post improved figures for the year to June 2025, directors warned the financial climate will "remain challenging".

The report stated: “The financial results of the 2023/24 season are of course disappointing, and the cumulative results over the previous three seasons have varied from the historic performance of the Club.

"The club is very much aware that a poor recruitment strategy has resulted in a significant overspend and downturn in performance and results, which continues to prove problematic for the financial management of the club."