Hearts count the cost of epic title challenge – Daily Business

Figures: Heart of Midlothian

Heart of Midlothian’s brave bid for Scottish Premiership glory has resulted in an operating loss of £2.4 million.

The Jambos looked set to clinch their first title in 66 years only to lose out to Celtic on the last day of the season.

The club’s financial report for the year end 30 June 2026 showed the title tilt came at a significant cost – an increase of £400,000 on the previous 12 months, although turnover was £23.1m, a record for a season without European football. This compares to £24.4m in the previous financial year.

The club revealed it continued to benefit from the “exceptional financial backing” from its benefactors and Foundation of Hearts members, with £1.49m in donations from the FoH, alongside the benefactors’ contribution of another £4.5m.

Player acquisition costs were £7.8m across the year, a total Hearts said reflected “significant investment in the playing squad” by Tony Bloom in his first year of involvement. The owner of Brighton & Hove Albion invested £9.86m in June 2025 to take a 29% non-voting stake.

Player trading gains sat at £1.8m, while staff costs rose by 8%.

Sponsorship and advertising income was up 37%, with retail & hospitality income increasing by 17%.

A club statement said: “The club took a deliberate decision to invest in the playing squad from a position of financial strength, helping secure a return to European league phase football for 2026/27.

“This additional investment in squad wages, combined with the absence of European income, resulted in an operating loss of £2.4m for the year.

“With European income returning and further progress in player trading, the club anticipates a significantly improved financial result in 2026/27.

“Strong underlying revenue growth offset much of the loss of European income for the 2025/26 financial year, with sponsorship and advertising income up 37% and retail and hospitality income up 17%, reflecting continued commercial progress and support from partners and fans alike.

“The increased investment in the playing squad and football operations was supported by an investment from Tony Bloom towards the end of the previous financial year, which strengthened the club’s financial position and provided capacity to invest in improving the playing squad.

“As an equity investment, this funding is reflected in the balance sheet rather than recognised as income in the profit and loss account.

“The reported operating loss of £2.4m includes £1.8m of gains from player trading and is stated before depreciation, amortisation and finance costs.

“Further gains will be reflected in the 2026/27 financial year following player trading activity completed in July and August 2026.

“The club is also engaged in positive discussions regarding further investment to support the continued, measured pursuit of the club’s ambitions.

“The club’s balance sheet remains robust, with the accounts reporting net assets of £20.3m at the June 30 2026 financial year-end.”

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