Two weeks to save Inverness Caledonian Thistle, club says

Inverness Caledonian Thistle FC (ICTFC) has proposed setting up a Crowdfunding page to raise £200,000 in two weeks to avoid going into administration this month.

The 2015 Scottish Cup-winning club has told shareholders that without the money the club would be insolvent.

It has proposed setting up a Save ITC appeal and has asked shareholders for other “innovative ideas” to raise substantial funding.

But ICTFC added that to survive until the end of this season next May, it must find a “credible buyer” or an investment of up to £1.6 million and finish second in League 1 to win the second prize money to earn.

ICTFC’s financial problems came to light after it was relegated from the Scottish Championship at the end of last season.

Fans reacted angrily to the drop to League 1 and subsequent problems, including a plan to move the Jags’ training base to Fife.

Last season losses reached £1.2 million and the club expects a similar loss this season, but warned that figure would not include money spent on post-relegation restructuring.

A football club enters administration when its debts exceed its assets, or when it cannot pay its debts when due. according to trade association R3.

The aim of the process is to save the club as a going concern in the hope of finding a buyer for it.

Investor and former chairman Alan Savage revealed this on last week’s episode of BBC Scotland’s A View from the Terrace that putting the club under management would ease financial pressure.

But he said it risked a penalty deduction of league points and even the possibility of relegation to the part-time professional Highland League.

ICTFC was in discussions with a potential buyer earlier this year, but later suspended negotiations.

In a letter, the club told shareholders: “We must accept the reality of the situation that debts are likely to reach £1.4-£1.6 million by May 2025 to cover cash losses, potential claims and delinquent creditors and a balance sheet status cover. With a negative £3.8m by the end of the financial year in May 2025, finding a credible buyer is highly ambitious.”

ICTFC said there was still hope that the government could be avoided, but an immediate injection of new funds was needed.

It said: “Unless the appeal can immediately raise £200,000, and certainly by Wednesday 16 October, administration is inevitable as the club would be insolvent.”

In the letter, the club said its role in a proposed electric battery storage system could generate £3.4 million.

But the project is the subject of a legal dispute after Highland councilors refused planning permission.