SPL’s Hibernian Announces Financial Losses

Scottish Premier League (SPL) club Hibernian’s financial struggles have continued after reporting a loss for the second year running as the club published its annual accounts.

The Edinburgh club did manage to cut staff costs but recorded a £900,000 loss before tax, the same level as the previous year.

Hibs now have a net debt of £6.4m, an increase of £500,000 from 2011.

The club reported turnover of £6.9m, down slightly, but slashed wages by £700,000, giving Hibs a wages to turnover ratio of 60%.

Much of the loss sustained came from a reduction in players sales, with just £100,000 made in 2011/12 compared to £900,000 the season before.

Club chairman Rod Petrie admitted the losses were “disappointing” and reflected a poor season on the pitch where Hibs finished one place above relegation.

Mr Petrie told the official Hibernian website: “The one sporting high of reaching the final of the Scottish Cup turned sour in the manner of the defeat.

“The club apologised to supporters for the lack of a performance on the day but now have the chance to atone for that defeat in this year’s competition.

“It is disappointing to report a loss for the year. The manager has rebuilt the team.

“Now the club is working closely with supporters to rebuild attendances at Easter Road Stadium and improve revenues for the current year despite the economic hardship that affects everyone.”