Caley Thistle teeters on brink of collapse

23/10/2024
The ICT FC stadium. (Photo: ICT)

Inverness Caledonian Thistle, a prominent football club in Scotland’s League, is facing a significant crisis as it teeters on the brink of administration.

The club, which was formed 30 years ago this year, is in financial crisis and had been trying to raise funds to keep going.

The aim of the administrative process is to rescue the club, but the SPFL confirmed Inverness had 15 points deducted – the club now faces potential relegation from League 1.

Administrators will attempt to find new owners, but if that is unsuccessful assets could be sold and the money raised distributed to creditors.

A statement released by the club said that James Stephen, Malcolm Cohen and Shane Crooks of BDO had been appointed as joint administrators.

Financial woes were exacerbated by two major setbacks earlier this year, when the club lost between £4.8 million and £5.1 million in potential revenue due to the collapse of a battery storage project and a park-and-ride facility deal with Statkraft.

These projects were expected to provide substantial financial support but fell through due to planning permission issues and contractual failures. As a result, the club faces significant financial strain, with last season’s losses reaching £1.2 million and similar losses anticipated this year.

An online fundraising campaign had generated about £87,000 but last week’s target of £200,000 was not reached, and it would only have delayed administration until the end of this month.

Caley Thistle said donations would be used to fund the club’s expenses in the administration period and would not be spent on professional fees.

The potential collapse of Inverness Caledonian Thistle could have profound effects on the local business community in Inverness.

If the club enters administration or faces relegation, it could lead to reduced match attendance and a reduction of economic activity in Iocal hospitality and accommodation businesses that rely on matchday traffic.

As well as potential job losses, the club’s financial instability also threatens its ability to continue contributing to community events and initiatives that foster local pride and cohesion.

Tim Cooper, president of UK insolvency trade association R3, said the aim of administration would be to save the club.

He told BBC Scotland News: “For the fan base of Caley Thistle it can look very daunting and demotivating.

“They can be rest assured if the club goes through this process everything will be done by any administrators appointed to work very hard through that process to save the club.”

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