THERE was dismay throughout Scottish football on Monday when it was announced that Dumbarton, one of the oldest football clubs in the country, had entered into administration.
Yet, the seismic development was, while devastating for them, far from a surprise for devoted followers of the venerable Dunbartonshire institution.
The Sons’ Supporters Trust immediately issued a statement which stressed that they were “saddened but not shocked” by the news.
There has been unease about the motives of owners Cognitive Capital Ltd and uncertainty over the future of the William Hill League 1 outfit for some time now.
Cognitive, who are headed by Norwegian businessman Henning Kristoffersen, outlined heady ambitions after buying out previous custodians Brabco 736 Ltd back in the May of 2021.
There was talk of introducing full-time football, of bringing through outstanding young players from across Europe and of, just as their St-Helens-based predecessors Brabco had proposed, moving to a new stadium at Young’s Farm at Dalmoak near Renton.
However, the more sceptical members of their fanbase had their concerns. They suspected that a hitherto unheard of entity with no prior involvement in the sport intended to use the land around their ground for a lucrative property development.
Their fears were confirmed in July last year when agents working on behalf of Cognitive applied for planning permission to build nine homes and 50 apartments on ground to the north and east of the stadium which is currently used for car parking on match days.
Planning permission for a smaller development had previously been granted when Brabco were in situ on the understanding the money raised would be used to fund a move from their Castle Road home to Dalmoak which was first mooted in 2012.
That, though, was formally rejected by West Dunbartonshire Council in 2018.
The area at Dalmoak which had been earmarked as the site of a new £13.5m stadium was retained as greenbelt on the council’s local development plan when it was submitted to the Scottish government in 2020.
The new housing development plans were opposed by both the Sons’ Supporters Trust and the Dumbarton Community Stadium Company – the body set up by Lord McFall to safeguard “The Rock” when it was opened in 2000 – last year.
Trust chairman David Brownlee said: “If this application is granted it will almost certainly result in a very damaging outcome for the future prospects of Dumbarton Football Club.”
Local Labour MSP Jackie Baillie was even more scathing. She branded the new scheme a “get rich quick pipe dream” and called for the introduction of an independent regulator for Scottish football who could safeguard community clubs.
“For nearly two decades, Dumbarton has been in the hands of owners whose primary interest appears to be land and property deals and who have frequently failed to deliver the resources promised to the club,” said Baillie.
“Reportedly, they have stalled possible community development because of a get rich pipe dream. Instead of treating clubs such as Dumbarton with the respect that they deserve, they have been treated like development opportunities to get rich quick.
“That would have meant moving the club from its existing ground to release it for an upmarket housing development. There were real concerns about the club’s future and whether this was a case of asset stripping.
“We must come together for our communities and clubs to guarantee that public interest is at the forefront of football ownership, that Scottish football is run for the benefit of the people and that accountability can flourish.”
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Clive Hyman, a corporate finance specialist from London who was elected to the Cognitive board in October last year, revealed the controversial new stadium plan had been abandoned in April.
But Hyman rejected Baillie’s claims and insisted developing housing on the site was vital for the future of the club as it would finance the installation of an artificial pitch which could be used by members of the local community seven days a week.
A joint statement that was jointly issued by Hyman and club chairman Dr Neil Mackay said: “We acknowledge that there has been a lack of communication in the past between supporters and the ownership group, but we are surprised at her accusations of ‘venture capitalists seeking to asset strip’.
“This is most certainly not the case. Cognitive Capital is made up of football fans and includes shareholders who have strong family ties to Dumbarton. It has been our genuine hope and intention that we can bring the stability and certainty that the fans seek.
“It is in nobody’s interest that the football club should stagnate, and it is therefore being led in new directions. We, as owners, are very supportive of this.”
Their statement continued: “There are no plans to relocate. We plan, in partnership with a new community trust, to develop facilities which will improve access to fitness and sport for all, with particular emphasis on disadvantaged groups.
“Integral to this is the replacement of the current playing surface with an artificial one which can be used seven days a week by the whole community.
“The funding of this project will necessarily be pump-primed by the proceeds of the planned housing development adjacent to the stadium. The proceeds from a successful property development will go to the club and enable development of the stadium’s facilities.”
However, there have since been allegations of corporate chicanery.
The most recent Dumbarton accounts, which cover the financial year to May 31, 2023, show the club was due to receive gross proceeds of £1,848,000 from the sale 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 proceeds was due to be paid in instalments of £300,000 in April 2023, and £1,548,000 in April 2026. The amount remains outstanding.
The accounts noted the recovery was “dependent on the successful completion of a residential development on the land sold".
They continued: "The developer has experienced a number of challenges and at the date of signing these accounts discussions remain ongoing with planning authorities to obtain detailed planning permission and work on the development has not yet commenced.”
It was revealed the company, funded by working capital, overdraft facilities and monies loaned by directors, related parties and other third parties, had "faced a number of cash flow challenges in the last year".
Directors admitted those challenges had created “a material uncertainty as to the company's ability to remain a going concern for a period of 12 months from the date of signing these financial statements".
Quantuma managing director and joint administrator Ian Wright this week confirmed: “The directors 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.
“As administrators, we will be investigating the circumstances surrounding this transaction and other issues affecting the club.”
The Sons’ Supporters Trust went further and alleged the sale to the “shell company” had taken place without the knowledge of board members.
They are optimistic going into administration will help to bring an end to the off-field unrest and restore stability to a club which was formed in 1872 and won the Scottish Cup once and the Scottish title twice in the early years of its existence.
“For some time it has been evident that the club has been operating under straitened circumstances,” they said.
“Whilst the appointment of an administrator is a very serious undertaking, it is to be hoped that an end can now be brought to both the club’s opaque ownership model and the boardroom tensions which have characterised affairs at Dumbarton FC since the purchase of the majority shareholding by Cognitive Capital Limited in April 2021.
“It is our opinion that the local directors have reached a brave and sensible decision. Furthermore, the trust would hope that any legal due diligence associated with the administration process would encompass the provenance and detail of the funding arrangements for that purchase.
“As well as the suspected transfer of a portion of land previously belonging to the football club to a shell housing development company created by Cognitive Capital Ltd, done without either the knowledge or approval of the Dumbarton FC board of directors in place at that time.”
Fans of Dumbarton - who were yesterday docked 15 points by the SPFL for going into administration and dropped below Inverness Caledonian Thistle, who are currently in exactly the same predicament, at the foot of the third tier table – are hoping their beloved club can be saved and jobs protected.
It will be a tragedy for Scottish football if the fifth oldest club in the country suffers the same fate as Third Lanark in such sorry circumstances.
