Caley Thistle have been saved from the threat of administration – just hours after consultant Alan Savage called for help from key businessmen.
It was announced on Wednesday morning the League One club’s draft accounts show a loss for 2023-24 of £1.7 million – a tripling of the tally for the previous 12 months.
But two key areas of income were identified as potential life-savers for the League One club – if Highland business figures agree before a crunch board meeting next Tuesday.
The news was delivered by club consultant and ex-chairman Alan Savage on Wednesday.
He issued an urgent appeal to the former directors to help save ICT from administration and has offered to take control of the club until 2027.
By Wednesday evening, the club released the following statement: “An amicable deal has been struck that saves club from administration – all stakeholders should be delighted.
“Alan Savage says it’s a great result and hopefully we get another one on Saturday (when they play Queen of the South).
“Interim chairman Panos Thomas has also expressed his delighted and is hoping too for a good result on Saturday.”
‘Still a tight ship’ says Savage
The specifics of the deal are unclear, but Savage believes it is a huge moment for the club.
Speaking to the Press and Journal after the announcement, Savage added: “The details of the deal don’t matter. It’s the outcome that matters.
“The stakeholders and fans should be really happy tonight that Caley Thistle is not going into administration.
“I have the responsibility of fixing it but I remind people it will take time. It’s still a tight ship and it will take methodical work moving forward.
“We won’t be signing Lionel Messi tomorrow. There is still a bridge to cross.
“I will put to the board that I can have control of the club but if they want to put someone else in going forward who can do better than me, they must say that. They have to back me or sack me, if you will.”
Three options were put forward to save club
Last week, Savage confirmed Caley Thistle were in line to clear more than £3 million of loans owed to seven key stakeholders.
But, at the press conference at the Caledonian Stadium on Wednesday morning, Savage revealed holders of loans worth £220,000 wanted repaid. This sits on top of current creditors less current debtors tally of around £400,000, which had left the club with £600,000 to find.
A controversial £40million battery farm project at Inverness’ Fairways Business Park was earlier identified as a money-maker for ICT.
A last-gasp appeal was made in July to overturn Highland Council’s refusal of the controversial plan.
It emerged the licence of the battery farm is in the hands of former ICT chairman Ross Morrison, current director Allan Munro and David Cameron, who is no longer on the board.
Savage had said he wanted the trio to pass the licence to the club, as it could be worth £3.4m.
In addition, seven acres of land the club once had the lease to are now under a lease to Propco Ltd, which was bought from Tulloch/Springfield.
Savage, who claimed earlier in the day that three attempts to speak to Cameron had failed, wanted the land beside the stadium the club once leased to be given back to the club, with a view to there being a later return.
He said: “If these entrepreneurs are prepared to deal with £150,000 of the loanees who want payment, I will deal with the £70,000 (former chief executive) Scot Gardiner thinks he is owed.
“If then the entrepreneurs are prepared to donate £450,000 to the club that enabled them to get these assets, I will take care of the club going forward as going concern.
“Revenue generated by the seven acres through time will recover their donation.
“Once this revenue equals the £600,000, they will split further revenue with the club on a 50/50 basis once their overheads and costs are deducted.
“If the licence is worth anything then after recovering their overheads and costs, they split anything that’s left 50/50 with the club.”
Crowdfunder was potential option
The 11th-hour appeal to these big business players was described by Savage as option A, with option C being the threat of administration.
Option B is a general crowdfunder.
He said the club would then “ask the general community of Inverness, its businesses, and the fans to donate money to sort the huge debts out and see if we can raise the £600,000.”
But the club confirmed in a brief statement last night an amicable deal had been struck to save Caley Thistle from the threat of administration.
The news was warmly welcomed by the club’s support.
Paul Finnigan wrote on social media: “Alan Savage has done well for the club. Now the team and manager need to perform to justify the faith.”
Karen MacGilp wrote: “This is brilliant news, the very best outcome we could have hoped for, we need to get behind the club now.”
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