SPFL club appeal for £200k within two weeks to avoid administration as Rangers liquidators placed on standby

Inverness Caledonian Thistle have issued an urgent appeal after admitting that administration is inevitable unless the club raises £200,000 within the next two weeks.

The League One side are in danger of going bust after suffering relegation from the Championship last season with former chairman Alan Savage putting in £350,000 of his own money to keep the club afloat over the summer.

However, a financial report conducted by Savage has found that the Highlanders require a further investment of between £1.4million and £1.6million to make it to the end of the season, including an immediate £200,000 injection to avoid falling into insolvency by Wednesday, October 16.

A crowdfunding page is to be launched where pledges can be made to a Save ICT Fund while an emergency meeting of shareholders, supporters and stakeholders will be held at the Caledonian Stadium on Monday, October 7 at 7.30pm.

In a letter to shareholders, interim chairman Panos Thomas detailed the grave financial situation facing the club.

"Unless the Appeal can raise £200,000 immediately, and certainly by Wednesday, October 16, then administration is inevitable, because the club would be insolvent," the letter stated.

The report found that the club suffered a £1.2million loss last season with another £1.2million deficit predicted for the current season. Trade creditors including HMRC stood at £600,000 in early August with loan debts to former directors standing at £3.425million, leaving the club facing a negative £3.8million balance sheet by May 2025.

Caledonian Stadium, the home of Scottish League One side Inverness Caledonian Thistle. (Photo by Paul Byars / SNS Group) | SNS Group

The club discussed its predicament with the SPFL last month while meetings have also taken place with adminstators BDO, the same company that handled the liquidation of Rangers in 2012. Should Inverness enter administration they would face an immediate 15-point deduction with redundancies also inevitable among both playing and non-playing staff. Manager Duncan Ferguson has already taken a 40 per cent pay cut to help protect jobs at the club.

The letter continued: "Discussions with Scotland’s leading football administrator has also taken place, after which the Board determined that it was duty bound to investigate what the administration process would entail, if that was to be initiated in a final attempt to avoid liquidation of the club. Subsequent discussions have been opened with an Administrator experienced in dealing with Administrations for Scottish Football Clubs."

Inverness remain hopeful that a potential lifeline could emerge from a proposal to build a battery farm on adjacent ground which could be worth around £3.4million to the club through the sale of land. The initial planning application was rejected by Highland Council in March but an appeal has been lodged with the Scottish Government.

The letter added: "Whilst Alan Savage’s temporary financial lifeline has undoubtedly saved the club from insolvency in the last few months, now that he has reported in depth to the Board, it would be unrealistic to expect that lifeline to continue. A decision as to the future path of the club must be made in the next few weeks and certainly by end October at the latest.

"As a club Board, it is incumbent on us to formally report this to you, the shareholders, as we have done above, seek your views and any suggestions to save the club, that may not have come to the fore over the last few months, and then act appropriately, in accordance with our statutory duties as directors.

"What no Balance Sheet or financial analysis recognises, of course, is that the club’s most valuable asset is its fan base. They provide the life blood for the club and we recognised that we should also make further steps through the Supporters Trust and publicly, to appeal to them to help the club to survive.

"We need to accept the reality of the situation that with debt by May 2025 likely to be £1.4 – £1.6 million (to cover cash loss, potential claims and back log creditors) and a balance sheet standing at negative £3.8 million by the financial year end in May 2025, finding a credible buyer is highly aspirational.

"However, a former Chairman has expressed the opinion within the last week, that he feels confident that Administration could be avoided, if the Board reached out to former Directors and major Shareholders to see what amount of money could be raised quickly to save the Club. Whilst we have already done just that, and on more than one occasion, nonetheless, and in line with this request, the Board are reaching out once again, and by virtue of this letter, to all shareholders, to former Directors, fans and all Stakeholders, to ascertain if it is still possible to raise money of the levels indicated above.

"It is a matter of considerable regret that, as interim Chairman, I have had to write to you in these terms, but you need to be fully aware of matters as they stand currently and with support of the Board, shareholders, fans and stakeholders, rest assured that we will continue to work assiduously and explore every avenue in an attempt to restore the club to a financial equilibrium that will ensure its future for years to come."