Hearts have published their accounts for the past year showing a glimpse inside the financial situation at the club.
The Tynecastle club are majority owned by fan group the Foundation of Hearts after they bought Ann Budge’s shares, as was the agreement when she helped save them from administration. Budge is still involved as chairwoman.
Jambos chiefs have been praised for the way the club has been run in recent years and recent financial reports have been encouraging.
The club is generally believed to be in as good a position as it ever has been off the pitch, even if supporters aren’t always enamoured with how it’s going on it.
Hearts release financial accounts
Hearts have revealed their financial report for the year ended June 2024.
The headline figures are a £1.2million operating loss, but a £4.4m total loss. However, turnover is over £20m for a second year in a row, although that had decreased slightly from last year. Staff costs have increased by £1.1million.
The club have moved to explain the context behind the losses, with a failure to return to European group stages last season a big factor.
A statement reads: “From a financial standpoint, season 23/24 was challenging. We reported Turnover of £20.25m and whilst this is a marginal decrease from the prior year, it does demonstrate significant year-on-year growth given the absence of European group stage football.
“Growth was prevalent in our sponsorship, broadcasting and commercial areas, with a marginal reduction in our gate receipts, and a reduction in our football prize monies, due to our non-participation in the European group stages. This inherent revenue growth, along with the continuing support from our benefactors and the Foundation of Hearts, allowed us to continue to invest in our staff including our players, our backroom support teams and our commercial and administrative support teams.
“Our staff costs increased by £1.1m over the season, which once again demonstrates our continued investment in this area. We are of course a Living Wage employer and have been since 2016 – an element of this investment reflects this commitment.
“Our operating costs increased by £1.6m, year on year, reflecting the impact of rising prices in almost all areas of our business along with increased costs associated with our revenue growth; the provision of additional facilities for our football department and the ongoing operational costs associated with our enlarged infrastructure.
“We are reporting an EBITDA loss of £1.2m this year, the first time for many years, and whilst this is disappointing, we are confident that we can return to profitability given our European group stage participation in season 24/25.
“Our depreciation and amortisation costs have increased by £0.6m reflecting our increased infrastructure costs, given the completion of the Main Stand and our continuing investment in players. Our balance sheet at 30 June 2024 remains strong with Net Assets of £20m.
“Our net cash outflow during the year amounted to £3.6m, with cash generated from operations of £0.8m, net spend on player and infrastructure investment of £5m and net incoming loans of £0.7m. Financially, this was a challenging year for the club, however we continued to invest in our playing squad and our staff teams, and we completed the new Main Stand, thus continuing to enhance Tynecastle Park and the club for the future.”
Hearts return to Europe will help
As mentioned, not playing in European group stage football last season was a blow. That happened after Hearts allowed a strong hold on third to be blown away by Aberdeen.
However, last season the DID finish third and that has them back playing in the Conference League which comes with a cash boost of circa £5m.
On top of that, they’ve actually won two from two in the competition so far and with each victory coming with prize money, they’ll be hoping to keep that form when they face Heidenheim on Thursday.