Inverness Caley Thistle administrators BDO says they have rejected a bid to buy the football club – but 15 parties remain interested despite complicated land situation
Inverness Caledonian Thistle administrators BDO say they have already rejected one bid for the club – but 15 parties remain interested in buying the football club.
Joint-administrator James Stephen revealed the news this morning, stating that he hopes to appoint a preferred bidder next month.
It is now over two months since Caley Thistle brought in BDO to take charge of the club’s affairs, with former chairman Alan Savage providing a stable financial footing for the club to continue the 2024/25 season.
However, long-term a new set of owners will need to be found, and Stephen has revealed the latest state of play in the Highland capital.
“We still have significant interest in the club – around 15 parties,” he said in a statement.
“Discussions are ongoing and we had a call on Thursday with a potential investor. That went well and they have asked for further information. Interest is both UK and worldwide.
Related
• Red Poppy describe impact of £26,000 owed to them by Caley Thistle
• BDO reveal full list of ICT creditors
• Timeline of days immediately leading up to Caley Jags’ administration
"From a buyer's perspective, there are two parts to consider. The first is the funding to buy the assets and allow me to promote a credible voluntary arrangement.
"The second bit is they need to understand what the funding is going to be like for the club moving forward as it strives to move away from a loss-making position.
"Parties have asked to see budgets beyond the end of this season. We are preparing them and they will be ready in early January.
"We will continue those discussions in January, and I am still very optimistic and pleased with the interest we have still got. We've been having sensible and credible discussions.
"My desire is to conclude the sale as quickly as possible, but it has to be a transaction that works for everyone. Thanks to Alan's support, we have breathing space to iron out some obstacles we're facing.”
Elaborating further after questioning, Stephen continued: “Some foreign investors have asked to see budgets going beyond the end of this season.
“They see it as a long term project, they want to be in it for seven to 10 years or more.
“They have a very strong affinity with sport, in the country that they’re in they are connected to a lot of sporting institutions, and one of them in particular has a strong affinity for Inverness and has visited quite a lot, so that has sparked their interest.”
“I’m optimistic, and Alan has given us a great period of stability to iron out all these issues.
“I would like to get to a preferred bidder stage in January with a view to putting forward a company voluntary arrangement proposal to the creditors.”
Stephen did confirm, though, that the Caley Jags would not exit administration next month, meaning they will be limited in what they can do in the forthcoming January transfer window.
Complicating matters is the land situation around the stadium.
On that issue, Stephen said: “I just want to be crystal clear, the stadium and all the land around it is owned by Highland Council and the Common Good Fund.
"The club has the lease until 2094 for the stadium. When I say stadium, I mean exactly that. We are a sub-tenant for the 9-10 acres of land around the stadium, which includes the car parks.
"The head tenant is a company called Inverness Caledonian Thistle Properties. Our sub-lease is with Inverness Caledonian Thistle Properties. That is controlled by Ross Morrison and David Cameron, who are two former directors of the club. That was purchased by them in 2023. These leases run until 2094 as well.
"In simple terms, the club doesn't control the destiny of the land. The sub-lease is terminable at quite short notice. That means we are in quite a weak position in that respect in terms of security of tenure.
"I can't hide that is a potential obstacle to the sale of parties. They are quite understandably concerned the land could be subject to a change of use or the sub-lease could be terminated within a relatively short notice.
"Given where the club sits, a major portion of the land is important to the club as it is not a city centre club and transport links are not great. Having that lands allows the club to promote non-football revenues which could be a big factor in the club being successful going forward.
"I have been in touch with the council to say, in these circumstances, if the property company decides to do something different – sell them on or look for a change of use – then we are to be notified. We have a sub-lease and are a neighbouring party.
"I did seek to get PropCo agreement from the reading that I had from the books and records of the company to agree what had been agreed prior to my appointment. That would have been of great assistance to the process.
"However, following administration the PropCo position has changed. Their proposal is basically to offer a significant portion of the land to the club or a prospective purchaser. So there would be financial recompense for that. It's not fatal to the sale but it does add another significant cost to any acquisition.
"The offer that was on the table prior to administration would have been good.
"I remain committed to trying to seek a commercial agreement with all parties involved. I will also consider what other options around administration we may or may not have.”
Again, upon further questioning, Stephen said: “What they are asking for now is markedly different now to what it was before administration.
“There’s the triangle in the corner which is called the Bermuda Triangle – that wouldn’t form part of any acquisition of the club.
“The Bermuda Triangle would potentially be sold off to someone else, and then the club would either get back the remainder or seek a sensible commercial deal to buy the remainder.
“(Potential buyers are) totally aware of the situation, and we’re trying to look at alternative options that may work without having to get embroiled in a long-running negotiation.”
On his chances of coming to an agreement with Morrison and Cameron, Stephen added: “I’ve had one conversation with Ross since I was appointed, and to be fair he has asked for a meeting in January which I welcome.
“Previously I was dealing with him through his solicitor. He has duties as a director to co-operate with me.
“I wouldn’t say he has been uncooperative, but I would like to see it move a bit quicker.
“I’m very keen that the meeting in January goes ahead.”
