The importance of landing a top-six finish this season has been laid bare in Hibernian’s annual accounts after the club posted a net loss of £1.5 million.
The figures, for the year to June 30, 2022, represent a significant downturn from the profit of £870,000 recorded last year.
The return of crowds following the Covid-19 pandemic restrictions resulted in a massive jump in turnover, up 39 per cent from £8.5 million to £11.9 million.
However, operating costs also rose significantly, from £10.5 million to £15.8 million.
That led to a worrying £3.5 million operating loss for a turbulent 12 months on and off the pitch.
The sackings in quick succession of managers Jack Ross and Shaun Maloney cost Hibs in severance payments but a player trading profit of £2.1 million, largely thanks to Martin Boyle’s departure for Al-Faisaly in Saudi Arabia, helped ease the deficit.
The Easter Road side finished eighth in the Premiership last season and missing out on the top-six, and lucrative home games against Hearts and Rangers after the split, had ‘a significant impact on attendances for the last few games of the year as well as a decrease in the share of SPFL revenue’, according to chief executive Ben Kensell.
He added: “Poor league form, lack of desired playing identity and financial failing also drove a change of management twice during the year, which incurred significant severance costs that have been recorded in the accounts.
“I have spoken of the need to achieve greater stability and consistency, and the figures simply underpin the need to do so.”
Hibs have released the figures to shareholders ahead of Tuesday’s annual general meeting, which will ‘conduct the formal business of the company only’ as a mark of respect for owner and chairman Ron Gordon, who passed away last week following a battle with cancer.
