Scottish Championship side Hibernian has announced losses of £800,000 for last season and "revealed a new share issue that hopes to raise" £2.5M ($3.8M) and give fans a 51% stake in the club, according to Gregor Kyle of the Scotland DAILY RECORD. The Easter Road club released its figures for the season on Tuesday. Financially it made for "grim reading" with losses of nearly £1M and turnover falling to £5.8M for the year ending July 31 -- down from £8M the previous season. The campaign was a "disaster for the club from start to finish." During that time staff costs fell to £3.7M although "wages to turnover ratio increased" from 49% to 64%. Net debt at the end of the period was £9.3M -- of which £6M was owed to a bank "and the rest to the holding company." The club now hopes that a new share issue will raise £2.5M and "give fans a greater stake in the club." Hibernian said in a statement, "Enough new shares are being made available which, if fully
subscribed, would see supporters own 51% of Hibernian FC which would
receive all of the £2.5M proceeds of the issue" (DAILY RECORD, 1/13). The BBC reported the club attributed the "drop in turnover" to "poorer sporting performance" and the outsourcing of the management
of the club store at the start of the season, "which meant there were no
retail sales in the club's turnover." The club's statement said, "The lower league position contributed to
lower gate income from matches played at Easter Road Stadium and a
lower distribution from the SPFL, which is based on each club's final
league position" (BBC, 1/13).
