Dumbarton plunged into administration after local directors agreed they could no longer pay the wages of players and staff.
One of Scotland’s oldest clubs, the League One side followed Inverness Caledonian Thistle into insolvency after a board meeting concluded with an agreement to appoint administrators.
Mail Sport understands that the struggling club were forced to approach local businessmen last month in order to raise the £10,000 needed to pay staff salaries.
Starved of cash and investment after an application by owners Cognitive Capital to build nine houses and 40 flats on land to the north and east of the current Castle Road Stadium failed to secure planning permission, administrators blamed the ‘non receipt of significant funds’ for their appointment and promised to investigate the events leading up to it.
Now deducted 15 points by the SPFL, the Sons find themselves bottom of the table – four points behind Caley Thistle.
Joint administrator Ian Wright of Quantuma said in a statement: ‘The directors of the club were left with no option other than to appoint administrators, following the non-receipt of significant funds that were owed to the club from the sale of development land in 2021.
Dumbarton football club have gone into administration after they could not pay wages
Dumbarton, in white, in action against Inverness who are also in administration
‘As administrators, we will be investigating the circumstances surrounding this transaction and other issues affecting the club, but will not be in a position to comment further at this time.
‘Our immediate priority is to ensure the club can complete its fixtures and we will be meeting with key stakeholders to ensure this can be achieved.
‘We understand this will be a shock to fans, staff and the local community.
‘The club employs 18 playing staff, six football staff and three club staff, whose roles are secure, whilst we work through the early stages of assessing the options available to the club. We would invite any interested parties to come forward.’
Dumbarton’s most recent accounts – for the 2022-23 season – showed they were owed more than £1.8million from sale of land – payment of which would be dependent on the completion of the residential development. A £300,000 instalment was listed as overdue.
Cognitive Capital bought an 80 per cent stake in the club in 2021. Initially an investment vehicle for Norwegian Henning Kristoffersen, wife Kamila Kristoffersen and Manchester-based architect Matthew Atkinson, Cognitive purchased the club from St Helen’s based Brabco 736.
Brabco sold up when plans to move to a new 4,000-capacity stadium at Young’s Farm, featuring 200 new homes, a hotel, retail park, office units and community sports facilities were kicked out by West Dunbartonshire Council.
With the Young’s Farm plan now dead in the water, the failure of Cognitive’s plans to build houses and flats on club land is now expected to trigger legal claims from creditors and lenders.
Henning Kristoffersen has now stepped down as a director, with the only person of significant interest currently listed as director Ian Wells. Mail Sport has approached Cognitive for comment.
A statement issued by David Browlee of the Sons Supporters Trust praised the decision of directors to clear the decks by going down the administration route.
‘It is our opinion that the local directors have reached a brave and sensible decision.
‘Dumbarton Football Club was founded in December 1872 and recently celebrated its 150th anniversary.
‘However, for almost 20 years now, the controlling interest in the club has resided with parties whose principal aim has been to employ Dumbarton FC as a vehicle to enable housing development on the club’s iconic site at Dumbarton Rock.
‘Today’s announcement marks the continued failure of that endeavour.’
The second League One club to enter administration in a short space of time, Dumbarton’s plight will inevitably amplify calls for Scottish football to follow the lead of England by introducing some form of independent regulation.
Simon Barrow, a former associate director at Dumbarton and co-founder of the Scottish Football Supporters Association, said: ‘This latest administration, as well as being awful for everyone who loves the club, is another blow to Scottish football.
‘It shows the need for systemic change within the game and independent scrutiny of the way it is governed and financed.
‘The local directors at Dumbarton have been doing everything they can to protect the club, but with erratic owners they have been in an impossible situation.
‘Every effort needs to be made to get one of Scotland’s historic clubs – its original champions, in fact – to safety after this latest trauma.
‘That has to involve reliable, community-focused and fan-engaged ownership. A group of us have been working on this for some time and will continue to pursue it rigorously.’