Hearts Finances 2022/23

Are Friends Electric?

Hearts’ 2022/23 financial results saw the club “continue on a very positive trajectory in terms of developments, both on and off the pitch”.

The team ultimately secured a fourth place finish in the Scottish Premiership, which ensured participation in the qualifying rounds of European football, while it also reached the quarter finals of the Scottish Cup.

However, a “disappointing early exit” in the League Cup and a poor run of form in the league led to the departure in April of manager Robbie Nielson, who was replaced by Steven Naismith.

Ownership

Hearts have come a long way since the club was placed into administration in 2013, when they were deducted 15 points and then relegated to the Scottish Championship. Much of the credit is due to Ann Budge, who took ownership in June 2014 in partnership with the Foundation of Hearts, following the misguided Romanov regime.

In August 2021 Budge signed over 75% of her shareholding to the Foundation, making Hearts the largest fan-owned club in the UK. The club described this as “Heart & Soul Day”.

This approach has served the club well, though the model going forward is likely to still require the support of benefactors.

Profit/(Loss) 2022/23

Hearts once again posted a pre-tax profit, though this dropped from £1.7m to £0.3m. Revenue rose £6.2m (42%) from £14.6m to a new club record of £20.8m, but this was more than offset by £7.4m (38%) growth in operating expenses.

There was a small £0.2m increase in donations from benefactors and the Foundation of Hearts to £6.2m, but profit from player sales fell slightly from £0.5m to £0.4m.

Hearts’ record turnover was driven by their involvement in the Europa Conference League group phase. This led to increases in both broadcasting, which more than doubled from £3.5m to £7.8m, and gate receipts, up £1.0m (20%) from £5.2m to £6.2m.

However, the club was at pains to emphasise that commercial income also rose £0.8m (14%) from £6.0m to £6.8m, thanks to growing commercial operations – hospitality, retail, sponsorship and advertising.

This revenue growth allowed Hearts to “substantially increase” investment in the playing budget, backroom support and facilities.

As a result, the wage bill shot up by more than a third (£4.2m) from £11.2m to £15.4m, while player amortisation almost tripled from £0.4m to £1.0m. Other expenses climbed £2.4m (36%) from £6.7m to £9.1m and depreciation rose 11% from £1.2m to £1.4m.

Not all clubs have published accounts for 2022/23, but Hearts’ £0.3m profit is the third best financial result in Scotland to date, albeit miles below Celtic’s record-breaking £33m profit. That said, Hearts’ performance was only made possible thanks to “very generous” donations of £6.2m.

In general, Scottish clubs usually aim to break-even, so even the largest losses are relatively small, with Rangers’s £4.1m deficit being the only one in the league above £2m.

Player Sales 2022/23

Hearts’ profit from player sales decreased from £0.5m to £0.4m. There were no major sales with most of the departures being either on free transfers or loan deals.