Inverness Caley Thistle goes into administration

Happier times for Inverness Caley Thistle fans in 2015 when the club won the Scottish Cup

Inverness Caledonian Thistle has been placed into administration as it fights for survival.

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 apppointed as joint administrators.

A spokesperson for BDO said: “We can confirm a formal appointment has been made and Inverness Caledonian Thistle is now in administration.

"We understand this will be a difficult and uncertain time for the club, its staff, its loyal fan base and the local community.

"The administrators will be in a position to provide further information and their plan to seek to secure the long term future of the club in due course.”

It is unclear yet what the impact will be for playing and non-playing staff, as well as the manager Duncan Ferguson - although job losses are likely at the club.

Talks were held last week with businessman David Anderson about a possible takeover but they ended without agreement.

Then on Tuesday, the Court of Session confirmed that the club had appointment administrators.

Losses ran to £1.2m last season and the club has forecast a similar loss this year, but that figure does not include money spent on restructuring following relegation from the Championship last season.

A online fundraising campaign had generated about £87,000 but the target had been to reach £200,000 by last Wednesday, and it would only have staved off administration until the end of October.

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.

Team manager Duncan Ferguson has also been working for free to help save money.

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."

Duncan Ferguson has been temporarily working for free to ease financial pressure on the club

Often known as Caley or the Jags, the club was formed in 1994 from the controversial merger of two existing clubs - Caledonian and Inverness Thistle - which both dated back to 1885.

It climbed through the leagues, reaching the Scottish Premier League in 2004, and enjoyed cup glories - including the Scottish Cup in 2015.

The club's 3-1 victory over Celtic in a Scottish Cup third round match in 2000 prompted the famous newspaper headline from The Sun: "Super Caley Go Ballistic, Celtic Are Atrocious."

But relegation to the third tier of Scottish football earlier this year saw Caley caught in a downward spiral with fans facing lengthy trips to away games, and finances severely challenged.

Now, following the 15-point deduction, the club drop to bottom of the league on -3 points. If they finish bottom after 36 games, they will be relegated automatically.

Should they finish second bottom, they have a chance of staying up via the play-offs. Regardless of what division they are in next season, they will start on -5 points.