Hibs’ financial accounts published on Friday certainly fall into the concerning category.
The Easter Road club posted a £7.2million loss for the year ending June 2024, admitting the results are “disappointing” and naming poor recruitment as a contributary factor.
The losses are up £3.4m on the previous year with operating costs going up from £9.2m to £11.6m. Ex-CEO Ben Kensell, who left Hibs last month, had stated the accounts this year would be much healthier.
Despite the financial position, the club were still able to back manager David Gray with the signing of midfielder Alasana Manneh in January.
And Hibs were also able to stand firm on offers for Rocky Bushiri, resisting the temptation to cash in for six figures and risk losing him for nothing in the summer.
Gray on Hibs finances
Gray has thanked the Hibs board for their backing of him as he admitted he had been privvy to conversations about the financial results before the announcement.
He wasn’t willing to say much more than that on it, leaving that to the powers that be.
Following Scottish Cup victory over Ayr United on Friday, he said: “It’s something I’m obviously aware of. There have been conversations about it the whole time. It’s probably more of a question for the hierarchy of the football club. My focus and job is to make sure that our performances on the pitch keep improving because that’s where we’ve been letting ourselves down in recent times.
“One thing I would say is the club, where they are just now, are really supportive of me. When I think back to even how the transfer window went at the start of the season, the amount of players we had and the support I’ve still got during, the continued support from the Gordon family, and the communication all the time, even in the January window, looking to try to support me if there was anything we wanted to do.
“So, the support is fully there. The club are comfortable with it. As I said, my full focus is making sure we get the right results on the pitch. Nights like tonight will help that situation because we’re getting a bit of a reward for success.”
Hibs statement on accounts
Upon releasing their financial statement, a spokesperson for Hibs said: “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 historical performance of the club. The club is very much aware that a poor recruitment strategy has resulted in a significant overspend and a downturn in performances and results, which continues to prove problematic for the financial management of the club.
“The current climate is very challenging for football clubs of a similar size to Hibs, and clubs are often reliant on shareholders or benefactors while trying to increase competitiveness. The club has done everything to maximise other revenue streams, and will continue to maximise these revenue streams, but ultimately is reliant on the steadfast support of the shareholders who continue to underwrite losses.”
Ian Gordon had previously insisted his family, major shareholders in the club, would write off any overspend from the footballing department.