Seven weeks ago leading Inverness businessman and respected former chairman Alan Savage dramatically entered the fray at Inverness Caledonian Thistle.
That was August 13, CEO Scot Gardiner was out, negotiations with prospective new owner Ketan Makwana were suspended, and Savage was in on the promise to deliver stability and security until a permanent buyer could be found.
But those efforts now appear to be over and the three to six months – which at one point rose to three years – shrunk to just seven weeks as even the former chairman failed to get a lid on out of control finances.
As The Inverness Courier exclusively revealed on Tuesday, the club has been in contact with leading accountancy firm BDO which handled the Rangers liquidation and the Hearts and Dunfermline administration proceedings.
Then earlier today we broke the news that the club believes it has until October 16 to stave off administration with an injection of £200,000 or else interim chairman Panos Thomas believes that administration is “inevitable”.
Such is the desperation within the hierarchy that Thomas is even considering a crowdfunding page to drum-up as much cash as possible and inviting innovative ideas to tackle the crisis.
There is a world of difference between those two moments: the relief of mid August and the fear of this week so we tracked the evolution of the latest chapter of the crisis that has placed the club’s future in jeopardy.
August 13
A big day that would radically alter the trajectory that most thought the club was on.
First, former club chairman Alan Savage was appointed to take charge at Inverness Caledonian Thistle, confirmed in a statement from the board.
The Orion Group chairman was hired by the club’s board of directors to take charge of the League One outfit and “to put the club in a firm financial position.”
At the same time negotiations with Ketan Makwana’s Seventy7 Ventures were suspended despite them being close to securing a deal.
It was also revealed that former Inverness Caledonian Thistle chief executive Scot Gardiner officially left the club the day before.
He had resigned earlier but was working an undetermined notice period and fans had been unhappy that he was still at the club.
His role now was to “carry out an internal forensic review of the club’s financial position to establish plans for the club’s future and setting the team into a viable position for new ownership.”
Fan relief
Generally Caley Thistle fans welcomed the news of Savage taking over at the club. One said it was “good news for Inverness Caledonian Thistle to have Mr Savage on board again.”
Another added: “Finally some sense from the club, step in the right direction with a local man with the club at heart, hope it works out well for you Mr Savage.”
Savage has always been respected because he was the chairman when the club was in the Scottish Premier League from 2006 until 2008.
Club statement
Part of the club statement that day read: “Savage and the Board are now looking to rejuvenate the connection between Inverness Caley Thistle and the community which will be integral to the long-term future of the club and are seeking support from local businesses to address the immediate financial shortfall until further long-term investment can be secured.
“Inverness Caley Thistle is hopeful that the community will once again rally around the team and come together to support the new foundations being established.”
That plea for funds would be undermined in a small but significant way within 48 hours of that announcement. It also introduced two themes that would be revisited seven weeks later.
August 14/15
No sooner had Savage started work than there was another mis-step by Caley Thistle added to the overall perception that the club was veering far off course.
The error was simple enough, even small. Savage was registered on Companies House as a director and then almost immediately terminated in that role.
The move sparked a moment of concern for fans who have grown too used to dramatic changes and set-backs but the error was more serious than that.
What was explained away as a “clerical error” was seen in the context of the club’s financial crisis and relegation as a small blip.
But some in the Inverness business community raised an eyebrow because they could not understand how this “clerical error” came about – it looked unprofessional.
It was an embarrassing moment but seen in the greater scheme of things it was nothing compared to relegation – it was a question of credibility.
Moving on from that, Savage said there has been interest from Chinese and Portuguese companies to invest into Inverness Caledonian Thistle.
It was reported that Savage has already put in £150,000 into the club, he said the plan is to get the club financially secure and then sell it.
There was better news in that Charlie Christie not just welcomed Savage’s return to the fold but also pledged to support him in whatever way he could.
He said he will give Alan Savage all the support he needs to get Inverness Caledonian Thistle back on a sound financial footing.
Christie, who has been part of the Caley Thistle set-up since day one, said he is a fan of the way pieces are falling into place at the club.
“I’ve always liked the idea of him being involved with the club, because I know what he can bring and his level of professionalism, and he has very magnanimously come in and is prepared to help the club,” he said.
August 19
A major advance was made in securing the club’s finances when it was announced Savage secured an agreement to wipe out more than £3 million in historic debts.
An emergency 11am meeting with individuals and firms that had previously given loans to the club led to every one of them agreeing to either write off the money they were owed or convert the debt into shares in the club.
Savage said the deal removed “a massive burden on the club” and would be a major game-changer in paving the way for new ownership and investment.
By far the most significant gesture came from previous chairman Ross Morrison who pledged to waive a massive sum of around £2.1 million owed to him in loans.
After that is emerged that a Portuguese group were interested in investing in the club and talks were set to begin.
August 21
News broke that the Portuguese investors were ready to pump £2.5 million into Caley Thistle if a deal can be struck – this was apparently the same group previously mentioned.
It was understood the wealth management company, with a base in Lisbon and multiple international offices and footballing interests, provided a letter of intent detailing that cash sum to the Inverness club’s representatives.
But the deal to wipe out over £3 million in loan debt saw that some individuals were compensated with new share equity means it is not certain the Portuguese interest, at that price, would secure outright control of the club.
Caley Thistle representatives indicated they would fly out to meet their Portuguese suitors the next week – ultimately nothing came of the deal.
August 27
The Inverness Courier exclusively revealed that Savage is prepared to go it alone as Caley Thistle’s leading investor if a legal agreement can be sealed on removing more than £3 million in historic loan debts – and it was.
Savage said he will seek shareholder backing to take control at Caley Thistle for three years if he can seal a deal to rescue the club from the threat of administration.
He made it clear the spectre of administration or insolvency still loomed large over the past Scottish Cup winners but that he is still working around the clock to stabilise finances in the face of a tangled mess of monies owed.
He stressed there was “no rush” to engage with potential international investors given his ability to drive the club forward with the local business community’s support.
August 28
Just a day after saying he was willing to go it alone Savage dramatically called on past Inverness Caledonian Thistle directors to help stave off administration as £1.7 million losses from the previous regime were revealed.
Savage also issued what he thought were the three options for financially-stricken Caley Thistle’s future as he condemned “five years of huge losses, chaos and confusion” in club leadership.
He called on three past directors to contribute around £600,000 to smooth the club’s path to recovery
Savage indicated he felt there was a strong case for David Cameron, Ross Morrison and Allan Munro to do so as they had been on the board during the troubles encountered during Scot Gardiner’s five-year tenure as CEO.
Mr Cameron and Mr Morrison now own the lease on a potentially lucrative seven acres of land surrounding the stadium, while they and Mr Munro collectively own the licence for the battery farm idea ICT hoped would raise £3.4 million before Highland Council planning rejection.
Revealing a balance sheet loss in the latest draft accounts of £1.7 million, Mr Savage said a second option would be to open a broader crowdfunding campaign asking fans, businesses and the public to contribute cash to plug the £600,000 gap.
The third, and most unpalatable for the club and the club consultant, would be administration followed by a Savage-led effort to revive the now League One outfit.
Agreement was reached to remove all but £220,000 of £3 million in loan debts owed to a variety of individuals, either by writing them off or converting into share equity.
But with money owed to a range of creditors having escalated during Mr Savage’s forensic examination of club finances, the £600,000 shortfall is now seen as crucial to the path forward.
September 9
Another bombshell day: it was confirmed that Sheriff Court officers visited the Caledonian Stadium at the end of last week over £70,000 that former CEO Scot Gardiner believes he is owed by the club.
Savage said that legal action pursued by former chief executive officer Scot Gardiner has opened a Pandora’s Box at the club leaving the Caley Jags three weeks to formally respond, with plans to dispute that claim.
As part of the process to provide evidence, ICT will this week enlist lawyers – paid for by Savage – to go through communications between the football club and the Caley Thistle concert company, which is at the heart of the claim.
October 1
The Inverness Courier reveals that the club had made initial contact with BDO about a possible administration – it was the news many had dreaded however it was another two days before the club responded.
Documents from inside the club revealed an outline plan for administration should the Caley Thistle move ahead with that option – it stated there would be immediate redundancies on the appointment of administrators.
It also laid out that debts, creditors, and other loans would need to be dealt with before emerging from administration and finding eventual new investors.
The club, Alan Savage and BDO did not respond to our inquiries.
October 2
Interim chairman Panos Thomas has reached out to shareholders in a letter stating the club need to raise the six-figure sum by Wednesday, October 16 or the club will become insolvent.
The club have sent out a letter to shareholders detailing the financial difficulties they are facing after it was exclusively revealed by the Inverness Courier yesterday talks have began about possible administration.
The club have confirmed they will be holding an open meeting of shareholders, fans and stakeholders at the Caledonian Stadium on Monday, October 7 at 7.30pm.
Thomas, along with consultant Alan Savage, who was appointed to conduct a financial appraisal of the club, will be at the meeting to answer questions regarding the League One outfit’s future.
The Inverness Courier has obtained a copy of the letter to shareholders, which has confirmed Caley Thistle intend to set up a crowdfunding page, where pledges of cash can be made to a Save ICT Fund.
The letter states “Unless the Appeal can raise £200,000 immediately, and certainly by Wednesday October 16, then administration is inevitable, because the club would be insolvent.”
The letter also says the club will need around £1.4 million to £1.6 million to get to the end of the season.
