Written by HutchieHibee

Arrived at the Forthview Suite in the Famous Five stand for the meeting in plenty time, to grab a seat near enough the front to see them clearly. Although my first impressions were the lighting was a bit dark. I will give them the benefit of the doubt in that it did seem to be for the benefit of the video screens and Audio visual presentation

Rod Petrie started the meeting with an address is his customary brisk business like style. He introduced the board members, John Hughes and gave his usual praise to majority shareholder Tom Farmer.

Rod then gave a brief outline of the schedule and format for the evening then moved to formally open the official AGM and set out to present the company accounts to the shareholders as per his duties as Chairman. Tim Gardiner the Finance Director then took us through the accounts pointing out key figures and explaining what others meant.

I must admit he went a bit fast for me, but the key statistic that did catch my attention was that in this set of accounts, Cup revenues accounted for only 4% of income and that as showed in a bar chart on the screen, Cup successes can hugely affect the clubs turnover. He also pointed out that as the board had continued to back the managers in player recruitment despite difficult financial conditions the ration of wages to turnover had gone over the target figure of 60% (it was 61%). H e also covered the fact that as gate receipts and season tickets dropped as well as a drop in sponsorships and TV money we made a trading loss, although with transfer fees received we made a reasonable profit.

He also pointed out that despite the crash in property values the stadium and the training centre were valued at £20.8 million and were included in the balance sheet as a fixed asset. Tim Gardiner also pointed out that net debt was now £3.6million a figure most clubs our size would be comfortable with. Questions were then invited from the floor on the accounts.

The only question on the accounts was about a £2 million figure in the receipts; this was apparently as a result of the full Stephen Fletcher fee being included in the accounts even though payment of the remaining instalment was to be received after the cut off date for the accounts. When questioned if any of the fee for Fletcher was dependent on Burnley staying in the EPL Rod Petrie replied that only contractually agreed fees due to Hibs were included in the accounts.

The accounts were then formally moved, seconded and passed without dissent. As no formal motions had been received the legal formal part of the AGM was brought to a swift close.

Rod Petrie took to the stand again and gave his Chairman’s address. He made a point of emphasising the low level of net debts. That Hibs now operated with no overdraft facility as the Banks had made it so expensive Hibs had decided to hold back £2 million of money as a cushion and this now operated as the clubs float. I must admit I was tempted to ask if this money was from transfer income of commercial activities but on checking the accounts the figure for “financing” of £250,135 was down from £1,206,853 in the previous set of accounts. So if we are really paying the Bank of Scotland nearly a million pounds a year less in fees then I think I am happy to let that issue go!

Rod Petrie then moved onto the subject of the East Stand. He went through the machinations of the complex negotiations and how after 3 rounds of talks with contractors the price was rising each time rather than falling. He admitted that the start of full construction was still currently on hold, but to address the issue of planning permission running out in February 2010 the club was going to obtain a Building Warrant and do a significant amount of preliminary work. Although this wouldn’t affect the East Stand as it is just now, this would in the eyes of the council and their legal departments mean that work had actually started and the February 2010 deadline had been met, so true building work may start later in 2010.

Rod Petrie talked about the demise of Setanta and hope is was disappointing as the television revenues had now dropped at a time the SPL clubs were hoping they would increase. It appears that under the Setanta business plan and agreement with the SPL, this season was to see them break into profit and increase cash payments to the SPL clubs.

Rod then rounded up his Chairman’s address by thanking the board members for their contribution and handed over to Chief Executive Scott Lindsay.

As Chief Executive Scott Lindsay said it had been a very challenging year for Hibs in many ways. He talked briefly about Mixu, how he was committed to the club and how he loved Hibs but moved quickly on to thanking all the former employees. As he rattled off a list of Mixu’s staff that had left the club and thanking them I was a little uncomfortable about how many there had been. Scott then moved on to formally welcome John Hughes to the club, he touched on the mangers use and application of Sports Science and declared that the club were now working in a partnership with Telford College to provide the club with all it’s needs in the field of Sports Science.

The training centre was declared as running as smoothly and successfully as they hoped at last years AGM and that with all youth and academy players now based there it was really coming into its own. This was demonstrated by the success of the Under 19s in winning the League and Cup double. We were then treated to a video of their Cup Final goals and both Cups were in the room on a side table for fans to hold and admire.

He stated that the success of promoting seven players from the Under 19 team was what they wanted to do on a regular level, as coupled with the fact developing our own players was a central part of the clubs plans FIFA had plans to introduced more regulations restricting the movement of young players so clubs who don’t adjust now will be hit hard in years to come.

Scott Lindsay also stated that despite last season’s success they had implemented an internal review of the youth structures to identify areas they could improve. Changes had already been made to the youngster’s curriculum apparently, although he didn’t expand on that.

On the subject of the youth set up, Scott Lindsay then addressed the fans involvement and the successive schemes that had seen fans get heavily involved. Starting with the wonderful Club86, onto Hibs Youth 2000. Then through to the current scheme called HYBS – Hibs Youth Benefit Scheme. I had a brief moment of thinking what’s that as nobody has ever contacted me about HYBS. But was rather unsurprised to be told the scheme had stagnated and was being wound up. A new scheme to support the youth set up of “The Hibernians” is to be started and they are actively looking for supporters to join the fund raising and organising committee to support the club appointed Bill Hendry.

Continuing on the theme of youth, Scott Lindsay talked about Hibs had now taken all the grass roots courses Hibs were involved with to the Training Centre at East Mains which had led to their expansion. He also touched on the Hibs Ladies continued success since being brought into the East Mains set up and access to all the facilities. The girl’s age group teams attached to Hibernian Ladies are apparently thriving as well.

The clubs charitable arm was then covered with the Hibernian Community Foundation and its work linking with the local community being covered. The motto they used was Learning, Health, Opportunity. Which is covered by the work with a group called Lothian Hibernian (sorry I didn’t catch what this is, can anybody explain), education courses run in conjunction with Jewel and Esk Valley College which used space in the South Stand and some of which were apparently running while we were at the AGM. The Homeless World Cup project now has their office in the South Stand as well. Scott Lindsay stated that although the Hibernian Community Foundation has attracted funded from various councils, education groups and corporate sponsors they are now actively look for fans donations.

Back on the topic of the finances Scott Lindsay stated that the board had been actively looking at the club’s running costs and although they had managed to trim costs by £500,000, the fall in attendances as well as the problems caused by collapse of the Setanta television deal had meant that the off park team had seen pay freezes, pay cuts and some job cuts.

He moved quickly on from that point to talk about John Hughes as manager. He stressed how the managers natural enthusiasm had infected the club, had reignited the interest of the supporters and he hoped that the fans that had drifted away will return.

He finished talking while standing in from of a visual display which showed at least 8 bullet points, the main one that interested me was right at the top.

“We have stability when others face uncertainty” Which I suppose does sum up the boards financial strategy. He finished by praising the Commercial and Communications Director Fife Hyland before handing over to the man himself

Fife Hyland took to the stand and talked about his work as commercial director. He talked about how he had implemented a review of all areas in an effort to look for improvements or any opportunities to maximise income.

He announced that a series of fans forums / discussion groups will be launched in the New Year to reconnect with the support.

He announced the marketing strategy was being looked at as they needed a consistency of approach as well as basing it on facts and credibility and it was all going to be done under a “Be Part of the Hibernian Family” theme.

A New membership scheme is to be announced as well as an E-ticket trial with electronic cards and turnstiles. The aim is to give a cradle to grave involvement with multiply layers of memberships. He was actively looking at improved season ticket payment plans spread over a greater period

Fife Hyland then went onto talk about the website. He stated that they had signed the deal with the Perform Group so that they could provide the site and the software, letting the current staff provide more content so they can expand the Web based TV channel. The aim is to double subscribers which will not only increase income but attract more commercial partners such as Betfair who they had recently signed a deal with.

He also talked about the revamp of the programme and the restyling of the stadium and training centre interiors and with montages of players and mangers over the years mixed in with shots of fans. He also stated the HFC Originals was the clubs first own clothing brand that didn’t rely on use of the club badge.

On the subject of shirt sponsor he stated the club were very happy to sign an attractive deal while other SPL sides struggle, but that new strategies were being looked at for capturing the increasing elusive sponsorship pound, with that he rounded up his piece and handed back to Rod Petrie.

Rod Petrie addressed the fact that as a board and a club we must work to back the work of the manager. The total of the summer transfer window was a total of 17 players out while 12 were either brought in or returned from loan. He praised John Hughes and pointed out he had stiff competition when applying for the job of club manager.

A montage of this season’s goals was then shown on the video screens at the end of which Rod introduced John Hughes to great applause.

John Hughes took to the stand and talked passionately about the honour and privilege to work as manage of the club. He stated he wanted to impose his style of “expansive, attacking, scoring goals type of football” on the Hibs team. He picked on sections of games such as “the second half at Fir Park” and “the first half on Saturday” as his targets on a regular basis. He stated that the club had moved on light years since his time as a player. He rather worryingly did say Hibs were still a business and that we still needed to be selling players, although he did say that it was his job to ensure that Hibs only sold when we had something better to replace the player with. He stated Hibs were and always will be a working class club that need to be in touch with the fans. On the players he stated that there were great young players who just had to learn that hard work was their best friend, that some can and will increase their work rate. That the work with the squad was an “ongoing process”. Pointing out the average age of the Hibs side is 24 he said that he was teaching then to “train like Champions”. He also stated that although there was a long hard season ahead he was determined to keep the team scoring goals and entertaining.

The full board then moved from the front row of seats to the seats on the podium and were made available to answer questions in an open session organised by David Forsyth one of the PR staff.

First question was from Frank Dougan who asked about the scrapping of the Reserve League. He asked whether the bounce games Hibs were using to replace the Reserve games were open to the Public and if there were enough to keep players over 19 but outside the first team active.

Hughes replied by saying the bounce games were usually on a Tuesday and that they would try and post details on the website as they were open to fans who would be welcomed along to East Mains where most were being played. He did admit that players like Byrne were suffering for the lack of reserve league but that regular bounce games would hopefully help that.

The next Question was again for Hughes asking him what was his preferred formation. He answered that it was “horses for courses” and that he would use any formation to win any game and he was happy to change the team if thought it would benefit things overall.

The next question asked was what was the difference between the roles of Chairman and Chief Executive and what did each one do.

Rod replied that the Chief Executive runs Hibs on a day to day basis while he was mainly involved in player negotiations as well as being on the board of the SPL, SFA and East of Scotland FA; he commented jokingly that it was just a part time job

Scott Lindsay stated that all board members and direct employees reported to him on a daily basis and that he was in general daily control of the clubs business, although it certain circumstances such as the tail end of the transfer window it was a benefit to have two executives, just to get the business done.

The next question was about Scott Arfield and whether Hibs would try to sign him in the January window. Hughes replied that it was all about value for money and that come January who knows who would be available at suitable prices. He praised the way the executive side handled transfer business and that they would work hard to land anybody suitable he then hinted “watch this space”

The next question was on the Goalkeepers which were in the shareholders opinion a problem that needed to be addressed. Hughes replied that they had two good keepers he praised big Maka and pointed out he was still young for a keeper. He stated that Stack was still in a settling in period and that he had not done much wrong in his opinion. So Hughes concluded it wasn’t a big problem in his eyes.

The next question was aimed at Fife Hyland regarding the operating of match day bars in the Famous Five Stand. If they were supposed to make money why did they run out of beer before kick off! He responded that the bars did have problems that needed sorting out and that on the previous Saturday he had worked both in the bar and behind the scenes to see the problems. He stated that “he would take that one on the chin” and work to sort things out.

The next question was to the board in general, in how much in percentage terms the lost Setanta money amounted to.

Rod answered that the SPL television money is put into a central pot, at the start of the season each of the 12 clubs gets 4% of that pot, with the remaining 52% being split on league position. He joked that maybe if John Hughes had a say, that a higher place share of the current £12 might work out more that a 6th place share of the projected £15million plus Setanta were due to pay.

Rod Petrie was then asked if the club couldn’t buy the steel for the East Stand just now as prices had returned to normal and stock pile it for when construction started.

Rod replied that they had actually looked at that option and had decided against it. He went on to further explain that at the time it was considered steel prices were much higher that was currently the case so they would have cost the club money. He also stated that we were a football club not commodity brokers

The next fans stated that while the club had come up with a clever work around the planning permission was there not a safety issue.

Garry O’Hagan replied that the safety certificate was issued yearly and the current East Stand met safety requirement and would continue to meet the requirements for the foreseeable future.

Fife Hyland was asked about a retail shop away from the stadium. He replied that despite the credit crunch and empty shops, they had failed to find a suitable outlet, although they didn’t rule this out as he was prepared to look at anything and everything.

The issue of Hogg as Captain was raised. Hughes praised Hogg and stated he met his view of a Captain on and off the park. He did point out that Hogg as Captain was supported by Ian Murray as Vice Captain and they organised the players meetings where the players discussed problems and issues between themselves.

The next person up asked two questions, the first part was regarding Ian Murray’s contract which runs out at the end of the season the second related to discipline and how to keep players off the front pages.

Hughes admitted that a player’s lifestyle had to be tailored to suit football and that he was frustrated by the incidents. He did say that the club had a code of conduct and “it’s severe”. While Rod stated that now things had calmed down after a hectic start to the season all the players in the last year of their contracts will be evaluated and dealt with. He made no specific mention of Murray.

Fife Hyland was asked about improving communications between the club and fans which in the shareholder’s opinion thought had definitely shaded in recent time. He gave examples of the club not replying to his emails and other approaches. Hyland accepted that what had happened was simply not good enough and he would definitely put it on his agenda for the upcoming fans forums. Scott Lindsay also gave a genuine apology for the lack of response to the fans emails.

The next fans commentated on how the stadium and training centre were being decorated and stated that he had been in boardroom to see pictures of various Hibs greats but no picture of Pat Stanton. He requested that the board commission a picture of Stanton. Scott Lindsay replied that all the pictures and memorabilia the club had was all now transferred to the Hibernian Historical Trust and that he had monthly meetings with the trust. He promised to raise the point at the next meeting.

The next question regarded ticket prices. The person stated that since Season Ticket sales were down why were there no deals on family tickets for walk up supporters.

He also asked if there were any moves to extend Zemmama’s contract.

Fife Hyland replied that there was a balance to be struck between Season Ticket prices and walk up prices and that as 75% of season tickets were part of family groups he said that they would remain focussed on season tickets. He also pointed out that there were very few examples of clubs boosting crowds by cutting walk up prices to below season ticket rates and that Motherwell had suffered badly from trying it. Rod Petrie stated that Zemmama’s contract would be discussed with John Hughes as his was “the only football opinion at the club that counts”.

Fife Hyland was asked to elaborate on the Season ticket payment scheme. In response he stated that in an ideal world it would be a monthly direct debit and Hibs would become part of a fans normal monthly outgoing rather than a lump sum expense in early summer. H hopes that the new scheme could be started in early 2010 for next year’s season tickets (or E-cards!)

John Hughes was then asked about the lack of use the team was making of the full backs and if this was a management instruction.

Hughes replied that it wasn’t and that he wanted full backs to be involved in building from the back, but against certain teams we couldn’t be predictable and we had to vary things

The final question for John Hughes was about why Hibs couldn’t defend throw ins. Hughes admitted that he had identified picking up at throw ins as a weakness and he and his coaching staff were working on getting everybody including the “mavericks” to work on this.

Rod Petrie then wrapped up the night and thanked everybody for attending.

Discuss this years AGM inside the forums on this thread.