Hearts report loss of £1.2m as club release annual accounts

Hearts have reported an operating loss of £1.2m in their annual financial accounts.

The figures, which show a turnover in excess of £20m for the second consecutive year, were released on Monday.

Commercial revenue has increased by 28%, while sponsorship and advertising revenue rose by 40% thanks to a club record shirt sponsor deal with Stellar Omada.

But no European group-stage football last season, combined with investment on and off the park, meant they posted a loss for the first time in nine years.

Operating costs have increased by £1.6m, following the provision of additional facilities for the football department and the ongoing costs associated with enlarged infrastructure.

Staff costs have increased by £1.1m, which the club says demonstrates its “continued investment in the playing squads and support staff.”

Hearts have returned to the Conference League this campaign, leaving them “confident of continued growth” in the coming year.

A statement released on the club’s website said: “The club’s latest set of accounts, for the year ended 30 June 2024, have been published ahead of next month’s AGM.

“In season 2023/24, Heart of Midlothian have generated Turnover in excess of £20m, for the second year in a row.

“Whilst 2023/24 shows a marginal decrease on the previous year, the underlying year-on-year growth is significant, given the absence of group stage European Football.

“Despite this lack of group stage European football, the Board made the decision, with the financial support of our benefactors and the Foundation of Hearts, to continue to invest in the playing squad in order to ensure an immediate return to the group stages. We are delighted that this has been achieved for season 2024/25.

“Investment also continued in the commercial areas of the business in order to support the club’s continuing growth and its ability to invest both on and off pitch. A significant investment in season 2023/24 involved the completion of the club’s Main Stand, with the development and opening of Tynecastle Park Hotel.

“This continued investment, with a marginal drop in revenue, has meant that for the first time in many years, we are reporting a loss of £1.2m.

“With group stage European football secured for season 24/25 we are confident of continued revenue growth in the coming year. Similarly, with no large-scale infrastructure projects on the immediate horizon, we are confident that we will reap the benefits of our years of investment over the coming season.”