Managerial Changes and Financial Backing Drive Hibs’ Alarming Losses
The Gordon family has pledged to continue covering financial losses as Hibernian FC owners, absorbing a staggering £7 million hit revealed in the club’s latest financial report. The annual results, published this morning, highlight the club’s ongoing financial struggles despite a 28% increase in turnover, bringing revenue close to £16 million. However, the final accounts still show a £7.1 million loss, confirming Ian Gordon’s earlier warning in September that the financial outlook would remain concerning due to the club’s on-field challenges.
Ian, son of the late chairman Ron Gordon, reaffirmed the family’s commitment to covering these shortfalls, stating: “For clarity, the family will continue to write off any overspending on football operations. We are comfortable with this approach at present.”
The report covers financial obligations related to the dismissals of two managerial teams, with both Lee Johnson and Nick Montgomery – along with their backroom staff – receiving compensation after being relieved of their duties. Additionally, the board backed Montgomery with what was described as “an unbudgeted player spend in the January transfer window,” leading to the arrivals of players such as Myziane Maolida and Emi Marcondes.
These decisions contributed to a £2.3 million increase in the club’s wage bill, which climbed to £11.2 million, pushing the staff costs-to-turnover ratio to 81%. However, the club did generate £1 million in transfer profits, largely due to a sell-on fee from Josh Doig’s move from Hellas Verona to Sassuolo Calcio and the transfer of Elias Melkerson to Stromsgodset.
Hibs also faced significant one-off costs in the financial year ending June 2024. This included a £3 million investment in Easter Road improvements, such as the introduction of rail seating for safe standing, as well as a £1 million write-off after a commercial partner collapsed. Despite these setbacks, the accounts indicate Hibs maintained nearly £3 million in cash at the end of the period.
Although the board anticipates improved figures next year, they acknowledge that losses will persist, requiring further financial support from the Gordon family. The family remains the club’s majority shareholders, despite billionaire Bournemouth owner Bill Foley acquiring a £6 million minority stake in February 2024.
Hibernian’s AGM is scheduled for February 25 at the Behind the Goals sports bar within the stadium.
