Hibs losses not sustainable, says chief executive.
Hibernian’s chief executive Dan Barnett has stated that the club’s recent financial losses are “not sustainable” and has laid out plans to transition to a more stable long-term strategy.
Hibs posted losses of £5.8 million this year, bringing the total to more than £18 million over the previous four seasons.
Despite their continuous support, Barnett recognised that they cannot continue to rely on financial backing from majority owners the Gordon family.
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“We don’t believe those losses are sustainable,” he told me. “That will be reflected in next year’s accounts.
“We think there is significantly more revenue to be generated on the business side so that we are not dependent on European qualification or player trading in any given season.”
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Hibernian increased their coffers in January by selling forward Keiron Bowie to Italian club Hellas Verona for around £6 million.
According to Barnett, the club’s goal is to eventually break even on a regular basis.
“That is what we are working towards,” he replied. “The Gordon family has demonstrated amazing dedication, but our objective is to establish a model that is sustainable in the long-term.
“Growing money means growing the club.” Player trade is an important element of that, as it involves discovering young talent, developing it, and then maximising its value.
‘We would prefer to fill seats with own fans’
The club is also looking into measures to improve matchday revenue, such as offering additional South Stand tickets to away fans when Celtic and Rangers visit Easter Road.
Barnett assures that no decision will be taken without involving Hibernian fans.
Hibs predict that unsold South Stand seats might cost between £150,000 and £200,000 per year.
“We’ve been open about the balance between principle and revenue,” he told me. “We are working with fans to determine the appropriate approach. “We would always prefer to fill those seats with our own followers, but we also have to consider the financial impact.”
Despite the possibility for increased revenue, Hibs have decided to freeze season ticket rates for next season.”We want to keep football accessible and reward loyalty,” Barnett explained.
“We shattered our season ticket record last year and sales are already ahead of that pace again. “My preference is to grow revenue in various ways rather than increasing costs for our fans.”
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