The curse of history

15 years ago, Hibernian Football Club nearly went out of business. Bankrupt and desperate, and playing in front of dwindling crowds at a decrepit ground, the only solid offer of new investment on the table was a takeover bid from Wallace Mercer, a prominent Edinburgh businessman. And owner of Hibs' Edinburgh rivals, Heart of Midlothian.

Mercer's negotiating position was strong, and he knew it. He talked openly about pooling the resources of Hibs and Hearts, of allowing the "wee" team to act as a feeder for the other team, perhaps dropping down a division or 2 if it helped them to find their level and blood young talent. Not for the first time, and probably not for the last, the plan was to try and finally create a footballing force in Edinburgh that could compete with the mighty Glaswegian twins.

In the end, the "Hands off Hibs" campaign re-energised the Leith club's support and brought them together, if only in unity of hatred against Hearts. Tom Farmer, another Edinburgh businessman, but one with strong links to the Catholic community (Hibernian Football Club was formed by Irish immigrants), was cojoled into saving the club from extinction. Wallace Mercer reflected before he died that he regretted ever attempting to force an Act of Union on Edinburgh's football clubs, because of the vitriol that came his way from Hibs fans. But at least it had demonstrated that at least some people were passionate about Hibernian… it demonstrated what Hibs were for.

But what are Hibs for now? Apart from a League Cup, improbably won in the midst of that near-death experience, the only silverware has been the Division One trophy Hibernian bagged on the way back into the SPL – but of course any trophy that requires relegation in order to make your club eligible is not something to brag about. Famously, the club has not won the Scottish Cup for 104 years, and has little else to show for its endeavours. This is a club with a proud history – enormously successful in the 1950s, when it was the first club in Britain to compete in the European Cup – but in an era of Old Firm domination at home and the increasing wealth gap between the big 4 leagues and the others in Europe it seems unlikely they can ever reach those heights again. There's a strong tradition, and rich history, but seemingly limited prospects.

This seemed to be the realisation Tony Mowbray, the current Hibernian manager, made last year. In his first season, his team had finished 3rd , and he was recognised as manager of the year. He could have done the same in 2005/6, except that suddenly Hearts had Romanov money to burn, catapulting them out of Hibs reach and into direct competition with the Old Firm. Hibs finished 4 th (again, as much as anyone could reasonably expect, given the huge gap in financial resources between them and the clubs who finished above them) but Mowbray seemed depressed by this, talking about how he had "a natural shelf life" in Scotland and that sooner or later he'd be off to try his luck in England. He is, after all, widely respected for what he has achieved in his 2 years at Easter Road so far, blending a young (and cheap) squad into a team that can really play, and will not be short of offers from covetous chairmen.

And yet… last week, Hibernian Football Club announced their latest financial results, and also that the manager and his assistant had agreed new 12 month rolling contracts. The accounts were simply astonishing – increased revenue, increased operating profit, well-managed debt. Wages at 42% of turnover. More season ticket holders, in a ground that has been steadily redeveloped into one which now hosts International Friendlies and Elton John concerts (not on the same day, obviously). Plans for the new training centre on the way. They even found time to sign a long term deal with the latest talented striker off the Hibs Kids production line, Steven Fletcher.

The turnaround from 15 years ago is simply astonishing. No question that the benign ownership of (now Sir) Tom Farmer has given the club some space to get its affairs in order, but he hasn't thrown money at the club either. As the man ultimately responsible for paying the mortgage, he made it clear to the board that, if the club wanted to stay at Easter Road, it needed to trade at least at break-even point. They are not being bankrolled any longer.

And then Hibs ended their week by beating Rangers at the weekend, and beating them comfortably. It was a performance that put a smile on Mowbray's face, and he spoke afterwards of his belief that this team is getting better and better.

Rangers now hold little fear for the "wee" team from Leith. Last season, they matched Hearts in the league, although were beaten comfortably in the Cup Semi-Final (a match where Hibs relative lack of resources were laid bare). They haven't got as many points off Celtic in the past few seasons, but every match is now a fiercly contested battle.

Mowbray himself isn't getting carried away, and rightly so. There is no way Hibs will win the SPL this season. Or next season, in all probability. They have failed to grasp any of the recent chances of making an impact in the UEFA Cup. But they are growing as a club, and if they keep on growing, anything could become possible.

In an era of mysterious wealthy benefactors throwing money at their clubs, and mass financial irresponsibility, Hibernian deserve applause and recognition for trying to get success the old-fashioned way.