Consultant Alan Savage has called on key figures in Inverness to save Caley Thistle – saying he has “run out of money” after it was revealed no buyer has been found for the liquidation-threatened football club.
A press conference hosted by Savage on Monday afternoon followed a shock morning statement from ICT’s joint administrators BDO.
In it, the administrators said Caley Thistle were “at significant risk” after the March 6 deadline for buyers passed without any offers to buy the club.
Former chairman Savage came to the ICT’s aid when debts of around £4 million forced them into administration last year, and has pumped a significant amount of his cash – around £1m – into Caley Jags to allow them to see out the season.
He vented his frustration no long-term takeover solution has been found, and made a plea to the Highland capital’s rich and powerful to help the city’s only full-time professional football club escape liquidation.
He said: “Needless to say, I’m disappointed no buyer came forward.
“To satisfy the SFA and SPFL rules, to operate this season will cost £1m all-in.”
In the same BDO statement, the administrators revealed Savage had agreed to fund 25 per cent of ICT’s purchase price to help achieve a sale, as well as 25 per cent of the funding requirements for the next two seasons after 2024/25.
Savage said: “The likelihood is we will need £1.8million to get through to the end of next season.
“That is on the basis we stay in League One as opposed to go down to League Two. We want to keep full-time football.
“I will have put in £1m, so I have done my shift – I need help.
“I can cover it until the end of the season, so May into June. I’ve run out of money!
“I think a city the size of Inverness, with the businesses of Inverness, the Freeport, people have made a fortune out of Inverness doing various things… I can’t see why it is a problem to raise (the investment).
“If we got three people putting £300k in, I’d have put £1.3 million in by then.
“I’m not being unreasonable. The city should be able to support a football club and it is disappointing if it goes all the way to liquidation.”
The three key issues which put off ICT buyers – and fresh efforts to overcome them
BDO, in their earlier statement, pinpointed three key issues which complicated the process of selling Caley Thistle and dissuaded potential buyers before the deadline.
They said: “Firstly, as any transaction would include the use of a Company Voluntary Arrangement (CVA) to compromise ICT’s debt, interested parties expressed concern re. the current level of loans (circa £3.5 million) from former directors of ICT (the loan creditors).
“A CVA requires 75 per cent or more of creditors voting in favour. Interested parties indicated agreeing any sale and purchase agreement was problematic as a number of loan creditors were at a value where they could veto a CVA proposal.
“Secondly, the nature of the club’s disparate shareholdings is impacting the ability of a potential acquiror to have adequate control.
“And finally, the uncertainties stemming from the ownership of land surrounding the stadium.”
Of the club’s creditors, most recent reports state former chairman Ross Morrison is owed the most – £1,650,251 – with ex-directors Allan Munro owed £661,500 and David Cameron £410,000.
The statement added: “Prior to the joint administrators (JA’s) appointment in the summer of 2024, the loan creditors had agreed to write off their loans.
“The JAs have written to the relevant former directors requesting that they now fulfil their agreement. Some have agreed, others are pending.
“The JAs remain hopeful that this issue can be resolved shortly.
“To address the concern about the nature of the disparate shareholding, the JAs have also written to a number of material shareholders setting out the position and requesting that their shares are returned to the club, or the potential acquiror, at no cost. Further letters will be issued this week. A number have agreed to this request and the JAs hope that this issue can also be resolved.”
Savage told the media on Monday afternoon they intend to get Caley Thistle’s major shareholders together this week “to find a solution” to the obstacles.
He said: “The administrators reached out to me, and I have offered to fund 25 per cent of the purchase price and the funding requirement on the basis that no buyer came forward.
“But I do need help on the 75 per cent balances.
“It needs doing quickly. Allan Mackenzie (former vice chairman) has offered to pull together the major shareholders this week, as he did last August, to get something going and to find a solution to the 75 per cent shortfall we would have.
“Things need to be done quickly to retain the football licenses with the SFA and SPFL, and to retain the squad for next season, to keep the football and commercial momentum going, and to avoid liquidation.
“I need help but that’s where we are at, at this point in time.
“I’m disappointed no buyer came forward and we’re in this situation.
“We’ve been trying since pre-administration – the administrators have tried to fix the problems.
“There is a lot of noise about the club, as we all know. We are where we are.”
No ICTFC ‘unthinkable’ – Savage says, as crunch meeting day revealed
When asked when this meeting with key shareholders will be, Savage added: “We want to have the meeting before Thursday.
“We want to have everyone concerned involved – all the big stakeholders and shareholders to see if we can thrash something out.
“It would be criminal for the city of Inverness not to have a football club. It is unthinkable.”
Savage is keeping his fingers crossed that Thursday’s meeting will lead to a step forward.
He said: “I am worried and I have tried to help.
“I have tried to give the club breathing space all the way through to try and find a buyer.
“For whatever reasons, amid a lot of noise, people didn’t come forward.
“It was too complicated – you were not buying 100 per cent of the shares from one person. It was trying to corral people and say ‘you have to cease some of your shares to jump the first hurdle’.
“Once you jump that hurdle, you have got to go to the creditors and see whether they will accept whatever pay-out.
“If you have amongst those creditors someone owed £1.5m, then he will get the lion’s share of the pay-out.”
How administration unfolded at Caley Thistle…
Saddled with debt of around £4million, administration was confirmed at ICT last October, leading to a 15-point deduction from the SPFL.
This, allied with a poor start under manager Duncan Ferguson, dropped them to the foot of the third-tier.
Ferguson, along with a handful of his players, were axed and former number two Scott Kellacher became the head coach, assisted by ex-skipper and current forward and club record-scorer Billy Mckay.
The form has been largely impressive throughout the winter, with the side winning 11 league games, drawing twice and losing seven.
Saturday’s 1-0 home league loss to relegation rivals Annan Athletic saw them slide back to eighth position, having risen up the table despite their 15-point deduction following a 4-1 win over Stenhousemuir last Tuesday.
They have seven fixtures remaining to try and stay up, continuing this weekend at home to promotion-chasers Alloa Athletic.
They are two points ahead of Annan and one point below Montrose.
Dumbarton, whose administration was confirmed in November, are far adrift at the bottom of League One and on the brink of automatic demotion.
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