Hibs have revealed the cost of the coronavirus pandemic on their coffers as chairman Ron Gordon assured fans brighter days lie ahead.
The Easter Road club this morning reported a £1.4m operating loss year on year to June 2020.
Turnover fell 17 per cent in that time from £10.8million to £8.9million.
Their statement goes on to reveal the ongoing stress on finances with the club’s cash position falling from £5.3m to £2.6m between June 30 and December 31 as a result of the pandemic and the shutdown of Scottish football a year ago.
Despite manager ack Ross running with a smaller squad and players and management agreeing wage deferrals, the wages to turnover ratio rocketed from 59 per cent to 74 per cent - dropping back to 68 per cent thanks to a £500,000 boost from the government’s job retention scheme.
With the gates having remained locked on grounds across the Scottish game and clubs having been forced to shell out for covid testing and compliance measures this season the financial effect has been seismic on clubs.
Hibs fans rallied at the start of the season - snapping up more than 11,000 season tickets.
Ross' playing and coaching staff stepped up to the plate too as they agreed 50 per cent wage deferrals at the height of the pandemic.
But the club was criticised in the summer for splashing out £250,000 to sign Kevin Nisbet from Dunfermline - with former chief executive Leeann Dempster arguing the club were "investing in the short to medium term" future by "creating revenue" from player trading further down the line.
In his letter to shareholders, this morning chairman Ron Gordon said: “Although we would all prefer to hold the meeting at Easter Road Stadium, current restrictions to stop the spread of the Covid virus do not allow for us to welcome you back to the club’s home yet. We will do our best to make sure the virtual meeting runs smoothly. We also intend to provide shareholders with an update on progress on implementing the strategic plan we outlined at the previous AGM.
“Your board and I would like to thank all those who supported the club during the 19/20 season, especially in view of the challenges imposed on the club and football in general by the Covid pandemic.
“We are particularly grateful to our season ticket holders, the players and coaching staff, and the entire team at Hibernian FC for their tireless work behind the scenes to help the club navigate the public health and financial challenges of the ongoing pandemic. Gratefully, the vaccine programme combined with the restrictions of recent months are bringing the pandemic under control, and the outlook for football in 2021 is starting to look brighter.
“We believe that in the foreseeable future we will be able to welcome you back to Easter Road. That will be a very special and wonderful day for us all.”
