Hibernian turns profit

Scottish Hibernian posted a profit of GBP 2.2 million and, while much of that came via a player sale, the team still would have turned a profit.

Chairman Rod Petrie said the sale of strikers Gary O' Connor to Lokomotiv Moscow helped pad the profits, without the influx, the club still would have had a GBP 700,000 profit.

A financial year that saw turnover go to a record GBP 8.7 million (not including the GBP 1.6 million sale of O'Connor) slashed the club's debt to GBP 6.8 million after it topped out at GBP 16 million.

The club's average gates increased by 11 percent, season tickets went up 32 percent.

"There has been a lot of hard work and a lot of sacrifices by a lot of people," Petrie said. "We were delighted to make a small profit [of GBP 65,000] last year but we are obviously delighted this year that we have been able to increase revenue and to support the manager [Tony Mowbray].

"Tony's objective has been to play entertaining football based on a fast-flowing, attacking game and that's been reflected in that average attendances have gone up from 9,000 two years ago to 13,800.

"The success of the football team in playing attractive football and challenging at the higher end of the League is reflected in the fact that more people are turning up at Easter Road to support the team, Tony, his coaching staff and everything that is happening."

O'Connor's entire transfer fee was extraordinarily paid upon his move to Russia rather than being dependent on installments or conditional elements.

In answer to where the money has gone, Petrie pointed out that not only had Mowbray and his assistant Mark Venues signed new contracts but so, too, had a long list of players, the latest being striker Steven Fletcher who has committed himself to another five years with the club.

"These are financial obligations to the club, commitments we cannot break," Petrie said. "Tony and Mark committing themselves to the club by signing new contracts only recently was a very significant event. We would have made progress but not as quickly without Tony at the helm.

"He deserves a lot of credit for his vision, clear sightedness and commitment."

Part of Mowbray's vision was for the club to have its own dedicated training ground, and with planning permission granted for the club's East Mains Training Centre on a 35-acre site near Tranent, that will become a reality with the first phase of work due to be completed next summer.

Petrie revealed that the GBP 636,000 cost of buying the land and subsequent costs will be reflected in next year's accounts.

Staff costs for the year rose by 11 percent to GBP 3.7 million but, because of the increased turnover the ratio of staff costs to turnover dropped to just 42 percent.

"I would think we stand comparison to any club in Scotland and many elsewhere in the United Kingdom," Petrie said. "A profit of £2.2m is a remarkable result and the major reason for the GBP 2.5 million reduction in net debt. This is further evidence that the club is in a very sound financial position."

Further proof of the club's long-term planning is the fact that Hibernian has negotiated a change in terms for of a GBP 2.5 million stadium mortgage, meaning it is now "interest only" with a single repayment now due in 2020.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.