Inverness Caledonian Thistle launch urgent crowdfunder in bid to avoid administration

Inverness Caledonian Thistle are to set up a crowdfunder in the hope of raising £200,000 in the next two weeks to avoid insolvency.

It was revealed this week that the club had made contact with accountants who previously dealt with financial problems at Rangers, Hearts and Dunfermline, and that the business was on the brink of administration.

Interim chairman Panos Thomas has now laid bare the state of the club’s finances and says that an urgent injection of funds is needed to save the club from having to appoint administrators.

In addition to the ‘Save ICT’ crowdfunding appeal, the club has appealed for fundraising ideas and is looking to former directors and shareholders to come to the aid of the club. Over the longer term, Thomas says around £1.6m investment will be needed to last to the end of the season, or a buyer will have to be found.

The interim chairman explained in a letter to fans that the last accounts for the club, for the 2022/23 season, showed a loss of nearly £600,000, while the figures for last season, which ended in relegation to League One, are expected to show a loss of around £1.2m.

A similar loss is predicted for the current season, though that figure could be even higher when expenditure “incurred in restructuring the club as a first division business” is accounted for.

While Thomas thanked former chairman Alan Savage for stepping in and contributing a substantial six-figure sum to prevent immediate insolvency, and carrying out a financial analysis of the club, he made it clear that immediate action is needed.

“A huge injection of cash is urgently required in the short term to keep the club afloat,” he wrote. “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 £1.4m – £1.6m.

“This figure assumes a second-place finish in the league and excludes the sum of £350,000 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.”

Thomas, who said that the Scottish Professional Football League has been made aware of the club’s position, said that “a decision as to the future path of the club must be made in the next few weeks.

“Unless the Appeal can raise £200,000 immediately, and certainly by Wednesday, October 16, then administration is inevitable, because the club would be insolvent,” he said.

An open meeting is to be held at the club’s stadium on October 7, where the board say they will answer questions and look for further help.

Thomas added “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.”