Consultant invested £350,000 into Inverness Caledonian Thistle to keep club going
CONSULTANT Alan Savage has invested £350,000 into Inverness Caledonian Thistle to ensure the club has been able to continue operating this season.
However, the League One outfit says it is unrealistic for them to continue relying on his investment as it looks for new funding to safeguard their future.
The club have said that it intends to set up a crowdfunding page where pledges of cash can be made to a Save ICT Fund.
In addition, the club confirmed it needs between £1.4 million and £1.6 million to ensure it can continue until the end of the season.
Interim chairman Panos Thomas sent a letter out to shareholders on Wednesday morning, detailing the financial situation it faces as it appeals for new funding to come forward.
The letter also highlighted the support Savage has given to the club since he has come on board in the summer to act as a business consultant to carry out a forensic appraisal of Inverness Caledonian Thistle.
The letter detailed that Savage has supported the club with £350,000 to allow it to remain solvent.
However, the letter stated that by May, the club is facing debt in the region of £1.4 million to £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.
In his letter, Thomas says Savage’s investment has saved the club from insolvency.
But he says it is not realistic to continue relying on him for his support as they look to take the next steps.
Thomas wrote in his letter: “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, 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 statuory 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 recognise 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, finding a credible buyer is highly aspirational.”
Savage has been contacted for comment today.