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Topic Originator: Buster_Brown
Date: Tue 1 Oct 08:19
After the reports in the summer, it was probably only a matter of time really. Feel for the fans of the club, as we know, not a nice position to be in.
Guessing there will be a points deduction for them, similar to Edinburgh City last season?
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Topic Originator: buffy
Date: Tue 1 Oct 08:37
“The SPFL would deduct 15 points this season and five points next season….”
”Buffy’s Buns are the finest in Fife”, J. Spence 2019”
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Topic Originator: Alf
Date: Tue 1 Oct 08:50
And yet they were signing players
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Topic Originator: wee eck
Date: Tue 1 Oct 09:34
According to the Courier they were negotiating to sign a Premiership striker on loan!
I feel for Paul Allan who only signed for them a few weeks ago.
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Topic Originator: fergie
Date: Tue 1 Oct 10:56
Terrible news and must be devastating for the ICT fans as well as the city. This was always one of my favourite away days, finishing the night in Hoots
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Topic Originator: da_no_1
Date: Tue 1 Oct 11:13
Just signed Charlie Reilly on loan.
"Some days will stay a 1000 years, some pass like the flash of a spark"
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Topic Originator: Back_oh_the_net
Date: Tue 1 Oct 13:48
And it’s BDO aka duff & phelps (helpless) they are looking to appoint so will they come back as the Inverness Caledonian thistle? when they are liquidated?
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Topic Originator: DJAS
Date: Wed 2 Oct 17:35
Interim Chairman Panos Thomas has written to all shareholders with the following update on the club’s financial position
Dear Shareholders,
Update on the financial position of Inverness Thistle and Caledonian FC Ltd (“the club”)
As interim Chairman of the Club and with the support of all the Board Directors, I am writing to all shareholders to advise and update you on the troubled financial position of the Club currently.
We are acutely conscious of the fact that as shareholders, you are the owners of the club and require and expect to be kept regularly informed as to the health of the business, and the more so just now, given additional financial struggles, following relegation to Division 1 last May. I do hope that you will have observed that we have given greater focus on openness and transparency over the last few months as we, as directors, strive to tackle these financial challenges.
Actions in August and September
By August of this year, it became clear to the Board that the Club’s financial position, which had been precarious for some years in all honesty, had become perilous. The 2023 accounts lodged late at Companies House revealed a loss of nearly £600k for the 2022/2023 season and as the auditors were preparing to commence the audit for season 2023/2024, where the anticipated loss is expected to rise to £1.2m, serious question marks were highlighted, regarding the club’s solvency and ability to continue to trade.
Strenuous attempts had been made by the Board to attract an inward investor and we did seriously consider an approach from 77 Ventures (Ketan Makwana), on which there has been much public comment. However, we suspended these discussions when it became clear that the gap between buyer expectations and seller ability to deliver was unlikely ever to be bridged. We remain open to consider any other credible offer of investment, even at this late stage.
At that point, and following meetings with many of the major shareholders who we considered might be able to assist the club and be willing to “ride (again) to the rescue”, the Board accepted a generous proposal from Alan Savage of Orion, who alone came forward and offered to undertake 2 key tasks:
1) to act as a business Consultant to the club, in order to carry out an urgent, intensive forensic appraisal and report (after 6 weeks) on the club’s financial position. Alan scrutinised the day to day running of the club, the financial projections, held discussions with current directors and staff, met with former directors with substantial loans outstanding, spoke with trade creditors and assessed what could be done to fast track an increase in commercial revenue and generally encourage more support and engagement from the club’s key stakeholders.
2) against the current perilous financial backdrop, and to provide time for this financial analysis to take place in an orderly way, he also offered a substantial financial lifeline to the club, affording it temporary solvency status, to allow us to continue to trade. To date that support from Alan has reached £350,000.
It goes without saying and the Board wish to place on record that we are all hugely grateful to Alan for having made these 2 commitments.
The club now has the benefit of his detailed report and conclusions, which we wish to share with you all and have summarised this below.
Conclusions from the Financial Appraisal
- Loss of £1.2m for the 2023/2024 season
- Predicted loss in the current season of £1.2m based on current projections. This does not account for additional expenditure that will also have to be incurred in restructuring the club as a first division business.
- Trade creditors (including HMRC) stood at £600,000 early in August. This includes monies due for a contract with the kit supplier, where the club is committed to a spend of £125,000 per season for the next 3 seasons and a provision against litigation threatened by the club’s former CEO that could, if the club’s case was unsuccessful, cost £170,000 .
- Former Directors Loans currently stand at £3.425 million, which would cause the Balance sheet to stand at negative £3.8 million by May 2025.
- A huge injection of cash is urgently required in the short term to keep the Club afloat. The amount that is estimated to be required to get to the end of this season (in terms of cash requirement, potential claims and backlog creditors) is in the region of £1.4 – £1.6 million. This figure assumes a second place finish in the league and excludes the sum of £350k already paid into the club by Alan Savage. In the past there have been numerous sources of this type of philanthropic support, whereas at present, despite efforts by the Board, it has thus far been Alan alone who has provided temporary funding to stave off insolvency.
- The latest cashflow projections predict that at least £200,000 will be needed by the end of October.
- Battery Farm: the club still hopes to benefit from a positive planning decision on the proposed Battery Farm. Angus MacDonald, the local MP was contacted and he is going to ask the Reporter in Edinburgh to expedite his decision on the Battery Farm Planning Application that was rejected by HRC. If the Battery Farm went ahead, it has been anticipated that the Club would receive £3.4 million less expenses from the Battery Farm Company, the club’s shares in which had been bought by David Cameron, Allan Munro and Ross Morrison, in order to provide monies to run the club to the end of last season. This may provide a way out of the club’s financial difficulties.
Land surrounding the Stadium extending to 7/8 acres approx. It had been hoped that this land might be re-conveyed to the club by the current leaseholders, Inverness Caledonian Thistle Properties Ltd. No deal has yet been struck though, although the club remains optimistic that a deal might still happen. If the lease of this land could be reconveyed to the club by ICTPL, it would better secure the club’s long-term future by ending the unease of having the 2 car parks subject to a 6 month break option, which could potentially see the club lose this vital land. It would also allow the club to use the remainder of the land to try to generate much needed commercial income, a fact which has been remarked upon by our auditors.
Other actions which the Board have taken
In the light of the current challenges for the club, the Board felt it necessary and procedurally correct to open discussions with the SPFL and we did so on Friday 20th September. Unsurprisingly, they had already had some awareness of our difficulties.
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 experi
Predictor league winner 2012/2013
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Topic Originator: saltonsgonagetu
Date: Wed 2 Oct 17:53
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.
We are also proposing the following actions, recognising that time is of the essence:
1) we intend to set up a Crowdfunding Page, where pledges of cash can be made to a ‘Save ICT Fund”
Unless the Appeal can raise £200k immediately, and certainly by Wednesday, 16th October, then Administration is inevitable, because the Club would be insolvent.
2) any innovative ideas for raising substantial funding, that might have been overlooked by us as a Board, can be e mailed to us at panos.thomas@ictfc.co.uk
3) We propose to have an open meeting of shareholders, fans and stakeholders in the Highlander Suite at the Club, at Stadium Road, to be held at 7.30pm on Monday, 7th October. We encourage as many as can attend to please come along and share your thoughts with us.
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Topic Originator: jake89
Date: Wed 2 Oct 18:42
When you read stuff like this you really wonder how any clubs are surviving in Scotland and it yet again displays just how damaging the SPL/Scottish Premiership has been with nonsense like the 10k seater rule.
Post Edited (Wed 02 Oct 18:43)
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Topic Originator: Luxembourg Par
Date: Wed 2 Oct 19:11
Quite bold of them to forecast and budget on a 2nd place finish, but I guess the prize pot isn`t significant in that division between 2nd or 4th
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Topic Originator: Stanza
Date: Wed 2 Oct 20:53
Two weeks to raise £200k or go into administration, which would mean a points deduction and the loss of players. Grim stuff.
_________________
 Support Dunfermline Athletic Disabled Supporters` Club (DADSC) when you shop online with one of 8000 firms: https://www.easyfundraising.org.uk/causes/dadsc[
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Topic Originator: wee eck
Date: Thu 3 Oct 15:17
Inverness Caledonian Thistle manager Duncan Ferguson says he is working for free to help the Highland club through a financial crisis. The League 1 club needs to raise £200,000 in two weeks to avoid being placed in administration this month.
Ferguson, who took a pay cut in August, said: "I felt it would be appropriate for myself to offer my wage into that pot." He said he would continue to work without his salary until ICT was safe, but added: "Obviously I can`t go without a wage forever because I have got to put food on the table, but at the moment needs must."
Ferguson said he decided on Wednesday night to give up his wage. He said he would not ask others to do the same. Ferguson added: "I`ve done my bit. I`ve given up that wage and I`m still working for the club. I`m making sacrifices."
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Topic Originator: da_no_1
Date: Thu 3 Oct 15:29
"I`ve got to put food on the table"
Not all heroes wear capes......
"Some days will stay a 1000 years, some pass like the flash of a spark"
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Topic Originator: bannerpar
Date: Thu 3 Oct 16:20
Speaking of Big Dunc, I see he managed to top a table of football`s hardest men, outdoing Vinnie Jones, Norman Hunter, Stuart Pearce, Graeme Souness, Joey Barton etc. Quite an accolade!
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Topic Originator: Berry
Date: Fri 4 Oct 01:07
Be a nice gesture if we could conjure up a small amount to aid their cause. Never nice to see teams in this predicament.
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Topic Originator: shellypar
Date: Fri 4 Oct 07:22
Quote:
Berry, Fri 4 Oct 01:07
Be a nice gesture if we could conjure up a small amount to aid their cause. Never nice to see teams in this predicament.
I would be nice but i dont know if we would actually be allowed
COYP
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Topic Originator: weemike
Date: Fri 4 Oct 09:46
Good on big Dunc leading by example. I hope inverness get through this difficult period.
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Topic Originator: saltonsgonagetu
Date: Fri 4 Oct 10:09
Quote:
shellypar, Fri 4 Oct 07:22
Quote:
Berry, Fri 4 Oct 01:07
Be a nice gesture if we could conjure up a small amount to aid their cause. Never nice to see teams in this predicament.
I would be nice but i dont know if we would actually be allowed
I`m sure the fans could club together ,
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Topic Originator: shellypar
Date: Fri 4 Oct 11:32
Quote:
saltonsgonagetu, Fri 4 Oct 10:09
Quote:
shellypar, Fri 4 Oct 07:22
Quote:
Berry, Fri 4 Oct 01:07
Be a nice gesture if we could conjure up a small amount to aid their cause. Never nice to see teams in this predicament.
I would be nice but i dont know if we would actually be allowed
I`m sure the fans could club together ,
As much as it is bad i`d rather sort my own teams issues out first imo, as selfish as that may sound
COYP
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Topic Originator: jake89
Date: Fri 4 Oct 12:28
Quote:
shellypar, Fri 4 Oct 11:32
Quote:
saltonsgonagetu, Fri 4 Oct 10:09
Quote:
shellypar, Fri 4 Oct 07:22
Quote:
Berry, Fri 4 Oct 01:07
Be a nice gesture if we could conjure up a small amount to aid their cause. Never nice to see teams in this predicament.
I would be nice but i dont know if we would actually be allowed
I`m sure the fans could club together ,
As much as it is bad i`d rather sort my own teams issues out first imo, as selfish as that may sound
I agree. I`d really like it we had a "fund" somewhere people could contribute towards in case we need fans to step in. Easier to do this ahead of time than an urgent rush.
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Topic Originator: pars4life1
Date: Fri 4 Oct 16:57
Throwing money down a well paying into that.
We all know that administration is a horrendous process, but it does serve a purpose once businesses have hit the ****, not only in debt but current unfavourable contracts(caleys kit deal commits them to spend £125k a season for example). From what I`ve read unless the magic money tree starts to blossom soon then admin is actually the best option for Caley. Just like us it will be a good day that someone has taken on their case, administrators don`t take on cases they can`t win, they need to make sure it pays them for a start.
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Topic Originator: Stanza
Date: Fri 4 Oct 17:13
Administration may be the only option for a struggling football club, but the consequences reach out into the community, with individuals losing their jobs and local traders not being paid for work they have done.
As was seen at DAFC, when it happens it takes years, and a lot of hard work by the club`s senior management, to restore a local community`s belief that the club can be relied upon to honour its contracts.
_________________
Support Dunfermline Athletic Disabled Supporters` Club (DADSC) when you shop online with one of 8000 firms: https://www.easyfundraising.org.uk/causes/dadsc[
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Topic Originator: veteraneastender
Date: Fri 4 Oct 18:19
"Just like us it will be a good day that someone has taken on their case, administrators don`t take on cases they can`t win, they need to make sure it pays them for a start."
Administrators are like civil case lawyers - they`ll get their professional services fees regardless.
The rest involved are losers, especially the local businesses etc. who are financially shafted.
Post Edited (Fri 04 Oct 18:21)
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Topic Originator: saltonsgonagetu
Date: Fri 4 Oct 19:23
Quote:
pars4life1, Fri 4 Oct 16:57
Throwing money down a well paying into that.
We all know that administration is a horrendous process, but it does serve a purpose once businesses have hit the ****, not only in debt but current unfavourable contracts(caleys kit deal commits them to spend £125k a season for example). From what I`ve read unless the magic money tree starts to blossom soon then admin is actually the best option for Caley. Just like us it will be a good day that someone has taken on their case, administrators don`t take on cases they can`t win, they need to make sure it pays them for a start.
Who`s to say it will stop at administration, not all company`s may take the Administrators offer , liquidation could soon follow
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Topic Originator: DunfyDave
Date: Sat 5 Oct 13:16
Quote:
veteraneastender, Fri 4 Oct 18:19
"Just like us it will be a good day that someone has taken on their case, administrators don`t take on cases they can`t win, they need to make sure it pays them for a start."
Administrators are like civil case lawyers - they`ll get their professional services fees regardless.
The rest involved are losers, especially the local businesses etc. who are financially shafted.
^^^^ Totally this
I supply and service many hotels and restaurants and have had countless Administrator letters over the past 20 years informing me of their clients predicament and listing their fees. Sometimes over £1,000 per hour for Director level. They always get paid first.
DunfyDave
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Topic Originator: veteraneastender
Date: Sat 5 Oct 15:14
When businesses are owed money from a defaulting football club they will likely demand payment upfront for future goods and services.
When DAFC went into administration I heard that certain suppliers would only accept such an arrangement - who could blame them ?
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Topic Originator: Indiapar
Date: Sun 6 Oct 15:38
I think any SPFL club going into administration is a warning shot for the game. Nobody benefits from any club going under. I am sure there are a number of clubs struggling financially. That leads me to wonder if a new football model is needed in Scotland. Quite what that is, is another question.
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Topic Originator: d3monstrate
Date: Sun 6 Oct 19:08
Things should have significantly changed when Rangers went under, but didn`t... Nothing is going to change for diddy teams going bust
Post Edited (Sun 06 Oct 19:28)
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Topic Originator: veteraneastender
Date: Sun 6 Oct 19:18
"I think any SPFL club going into administration is a warning shot for the game."
There`s been no shortage of previous examples - Dundee have done it twice.
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Topic Originator: McCaig`s Tower
Date: Sun 6 Oct 19:47
I agree India.
I`m not sure that the current model is sustainable. It seems too many clubs are spending money they don`t have in order to compete with other clubs doing likewise, all in the vain attempt to chase limited success.
When people talk about investment they tend to mean donations - from millionaires with money to burn. To mangle Mr Macawber, fans may come to expect £10 of product for £9 of expenditure.
Arguments for change may centre on cutting up the same cake in different ways, rather than increasing the size of the cake. All right if you are a winner, less so otherwise.
Administrators seem to blame the clubs - they claim the SPFL or whatever is a members` organisation and thus they are only doing what the clubs want. We need leadership, or to allow leadership to flourish.
I note that it is less than a year since Ian Maxwell (who is Chief Executive of the SFA) told the Scottish Parliament that financial failings of clubs was not an issue of relevance in Scotland.
Still, Ernie Walker`s review must be due to be published soon. Perhaps something will turn up?
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Topic Originator: jake89
Date: Sun 6 Oct 22:16
It`s a similar picture across Europe. Clubs are paying well over the odds for players. It`s fine for the big European clubs who get the competition money, sponsorship deals, massive strip sale revenue etc. Sadly, for most other clubs they`re screwed. Outside the top 5 or 6 clubs in the English Premier they would be absolutely shafted without the TV money.
In Scotland there is little chance of making money unless you`re Celtic, Rangers or maybe Hearts. Part time clubs may be doing alright due to low overheads. However, clubs like Dunfermline can be well supported but losing money thanks to relatively high player wages courtesy of being so close to England where TV deals mean higher pay. That`s presumably why the German consortium pushed the academy model.
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Topic Originator: desparado
Date: Sun 6 Oct 23:36
Being close to England and being relevant….. or not…. Financially or economically is always going to be an issue for Scotland….Yes ?
Of course we could have done something about that….. but chose not to……..and still we wait for “change” ….and we will wait…..and wait….and wait…..the same conversations we have had about Football, the Economy, why it’s so bad, we will still be having in ten, twenty years time, FFS our children will be having the same conversations.
We had a chance to change things but bottled it…….let’s hope they have more guts than we had eh ?
What an opportunity we missed in 2014.
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Topic Originator: DunfyDave
Date: Mon 7 Oct 08:51
The situation is desperate, Desperado
DunfyDave
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Topic Originator: jake89
Date: Mon 7 Oct 09:31
Independence is irrelevant. If you are offered £500 in Scotland and £5000 in England, guess where most would go?
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Topic Originator: veteraneastender
Date: Mon 7 Oct 11:10
Quote:
jake89, Mon 7 Oct 09:31
Independence is irrelevant. If you are offered £500 in Scotland and £5000 in England, guess where most would go?
Exactly. Salaries down South for players have been better since Johnny Haynes burst the maximum wages deal in the early 1960s.
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Topic Originator: fcda
Date: Mon 7 Oct 17:44
I don`t agree it`s "irrelevant" but I don`t think it`s a big factor.
With independence from England you might be able to restrict cross border movement, introduce quota systems and therefore encourage development from within.
However, I think for other business reasons that restriction is unlikely and of course, rejoining the EU would open that up too.
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