They have revealed that the “non-receipt of significant funds that were owed to the club from the sale of development land in 2021”.
The club sold a piece of land on April 29, 2021, to More Homes DFC Limited, a subsidiary of the club’s majority shareholder, Cognitive Capital. The balance of the £1,848,800 was due to be paid into instalments, of £300,000 in April 2023, and £1,548,000 in April 2026.
However, the total amount remains outstanding and the accounts state that the recovery of the money is “dependent on the successful completion of a residential development on the land sold”.
Dumbarton FC, which was founded in 1872 and won the Scottish Football league in its first two seasons in 1891 and 1892, called in the administrators on Monday.
A statement issued through the club’s website said that Ian Wright and Craig Morrison, managing directors at business advisory firm Quantuma, had been appointed joint administrators.
Dumbarton FC competes in William Hill League One, the third tier of the Scottish Professional Football League. They now face a potential points deduction, most probably 15 points.
“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.”
Robert Ryan, left, with some other well kent faces in the Sons’ grandstand.
The Sons fans have been expressing their dismay on social media.
One of the best known, Robert Ryan, told The Dumbarton Democrat: “This news is very disappointing but the posting of the club’s Accounts to May 2023 (The most recent available) showed that the club had spent almost £300,000 more than they had taken in since Cognitive’s takeover two years previous.
“I am encouraged that Quantuma are looking at the various transactions conducted between the club, Cognitive, More Homes and Pendragon.
“I along with all Dumbarton supporters, hope that this process can attract new owners who can start with a debt-free club which still owns and controls its heritable assets.”
Dumbarton are now on zero points in 10th, while Caley Thistle sit ninth on four points. Annan Athletic are on 14 points in eighth.
A spokesperson for the Scottish Professional Football League (SPFL) has now confirmed the imposition of a 15-point deduction for Dumbarton, in line with SPFL rules on member clubs suffering an insolvency event. The William Hill League 1 table has been updated accordingly.
In October, League One side Inverness Caledonian Thistle also entered administration – and were immediately docked 15 points by the SPFL.
Top of page picture is of Dumbarton Rock with Castle Street housing develpments closing in on it and the Dumbarton FC stadium car park.