Caley Thistle: Administrators reveal takeover update and next steps to 'rescue' club

Press and Journal

09-05-2025

Caley Thistle joint administrators revealed positive steps have taken place in regards to the bid to 'rescue' the club.
BDO said the losses, and any further between now and the end of June, will be covered by Alan Savage.
BDO held discussions with ex-club chairman Ross Morrison, who has agreed to write off a loan worth £1.5 million in order for the sale of the club to progress.
It also confirmed loans to former directors totalling around £3.5m will be written off if a deal to sell the club is agreed.
Savage tabled an £800,000 offer to buy 100% of shares of the administration-hit League One club in March.
BDO said it received a total of 32 interested parties from various countries but saw a majority withdraw interest during due diligence.
Issues for Caley Thistle suitors included securing the land around the stadium and the ability to gain a majority shareholding.
However, following discussions with key shareholders and the owners of the land around the stadium, the administrators were able to offer 'more assurance'.
BDO said: 'Several parties re-engaged in the process and we accordingly provided them with more time to consider offers.
'We set a further deadline of 5pm Monday 7 April 2025 for best and final offers.
'This process resulted in three offers for the club, however, we considered only
one of these offers to be valid and workable.'
On the field, Caley Thistle avoided relegation in style, finishing the season with back-to-back wins over Arbroath and Montrose.
Off the pitch, the administrator's report revealed the club had a turnover of £552,000 between October 22 and April 21.
Online ticket sales contributed to £63,700 while matchday ticket sales added a further £27,800.
Player trading raised the club more than £92,000. During the six-month period, the club received a £20,000 transfer fee from English club Accrington Stanley.
However, the cost of its sales and trading expenses, which included £340,000 in player's wages, added to £839,660 – leaving the club with a trading loss of £288,000.
Savage's £800,000 offer is subject to three key conditions; the former directors writing off loans of around £3.5m, the lease of the land around the stadium can be purchased by the club and 100% of the voting shares being transferred to him.
The joint administrators said: 'This process in ongoing and we are pleased to advise a large percentage of forms have been returned. A further significant percentage are in process.
'These developments will allow us to issue proposals to the unsecured creditors for a company voluntary arrangement (CVA) exit from administration.'
Should an exit from administration not be possible then administrators say it would likely end in Caley Thistle's liquidation.
BDO confirmed seven employees of the club have been made formally redundant following the joint administrator's appointment.
One employee has also resigned during the period.
BDO said: 'The outcome for preferential creditors is dependent on the ongoing business sale process, but we anticipate they will be paid in full as part of the CVA process.'
Meanwhile, HMRC have have submitted a claim totalling £114,699 and it is expected to rise to around £180,000.
BDO said: 'It is uncertain whether funds will be available for unsecured creditors after covering administration costs.
'The value of the company's net property is also uncertain. The schedule of creditors details unsecured creditors' claims totalling £1,976,933.
'To date, the joint administrators have received claims of £422,291.'
Caley Thistle's assets include the leasehold interest in Caledonian Stadium and property improvements, which have seen valuations obtained.
However, the values have not been disclosed to 'avoid prejudicing the sales
process'.
The stadium is held on a long ground lease with Highland Council, expiring in 2094.
The joint administrators also revealed they intend to cap their fee at £325,000 for the administration if a deal to rescue the club is reached.
They say this would represent a discount of around 40-50% on their estimated total time costs.