Hearts Finances 2023/24

Sweetheart Contract

Hearts’ 2023/24 financial results covered “a challenging year”, when they introduced a new management team, led by Steven Naismith. However, they “excelled on the domestic front”, as they finished a strong third in the Scottish Premiership, only behind the traditional Big Two of Celtic and Rangers, while also reaching the semi-finals of both domestic cup competitions.

On the other hand, their finances were adversely impacted by failing to get past the play-off round of the Europa Conference, where they were eliminated by Greek team PAOK.

In contrast to their good performances last year, Hearts have had a difficult start to this season, so they took the decision to dismiss Naismith after losing five of the first six games in the league, replacing him last month with former Blackpool manager Neil Critchley.

In addition, Hearts have tempted Graeme Jones from his position as Scottish FA performance director to become their new sporting director. The club said that it was getting “a top operator, someone with the determination and the ability to drive standards as high as they can possibly be.”

Ownership

Hearts have come a long way since the club was placed into administration in 2013, 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 wonderfully 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.

Hearts have been relegated to the Scottish Championship twice in the last ten years, though they immediately bounced back on both occasions. Since their promotion in 2020/21, they have twice finished third in the Premiership and fourth in the other season.

Profit/(Loss) 2023/24

Hearts posted a pre-tax loss of £4.4m in 2023/24, compared to a £0.3m profit in the previous year. This was the first time that the club had lost money since 2014/15.

Revenue fell £0.5m (3%) from the club record £20.8m to £20.3m, while profit from player sales dropped from £0.4m to just £5k. In addition, donations from benefactors and the Foundation of Hearts were down £0.7m (11%) from £6.2m to £5.5m.

Despite the lower revenue, there was still £3.2m (12%) growth in operating expenses to £30.1m.

Hearts noted that “the absence of European football limited our revenue growth”, leading to reductions in both broadcasting, down £2.2m (28%) from £7.8m to £5.6m, and match day, down £0.3m (4%) from £6.2m to £5.9m.

This was partly offset by commercial, which rose £1.9m (29%) from £6.8m to £8.7m. Player loans also increased from £0.1m to £0.2m.

Nevertheless, Hearts continued its investment in the playing squad and support staff, so the wage bill rose £1.1m (7%) from £15.4m to £16.5m, while player amortisation was up £0.2m (23%) to £1.3m. Other expenses increased £1.5m (17%) from £9.1m to £10.6m and depreciation rose 17% from £1.4m to £1.6m.

Not all clubs have published accounts for 2023/24, but Hearts’ £4.4m loss is the second worst financial result in Scotland to date, albeit a lot better than Rangers’ awful £17.3m deficit. That said, theirs would also have been a double digits loss without the “very generous” donations of £5.5m.