Dumbarton one of Scotland's oldest football clubs agrees administration rescue deal

One of Scotland’s oldest football clubs has secured a rescue deal after it collapsed last year.

Dumbarton FC have agreed a proposal that would see the League 1 club exit administration with all creditors paid in full.

The deal, which could be concluded by the end of the month, would bring to an end the ongoing legal action surrounding the club and the ownership of its stadium.

It’s also subject to there being sufficent funding put in place to run Dumbarton for the next three seasons.

The deal, outlined in a statement from administrators Quantuma, comes after a troubled time for one of Scotland’s oldest clubs.

In November, the club’s directors said they were left with no option but to appoint administrators after failing to receive money owed from the sale of development land in 2021.

A £90,000 fundraising campaign helped through a time when Quantuma said there was no money to pay wages, and affairs were put in order while discussions took place over a deal to save the club.

That proposal has now been agreed and administrators say they are now working to a target date of early May for completion.

A statement read: “The joint administrators of Dumbarton Football Club Limited can confirm that they have agreed heads of terms with Gareth Phillips on a proposal that would see the club exit administration solvently and with all creditors paid in full.

“Fans will be aware that the administrators have been engaged in litigation against Pendragon Group Limited of which Mr. Phillips is the principal.

“The full terms of the proposal are subject to confidential negotiations, however as part of the proposal, the litigation with Pendragon would be concluded on the basis Pendragon would not hold security over the club’s assets.

“Mr. Phillips would introduce sufficient funding to stabilise the trading of the club going forward and the administrators are required to be satisfied that there is security for cash flow and a business plan to provide support for the club for the next 3 seasons.

“A non-refundable deposit has been received by the administrators which will cover any short-term trading shortfall whilst the transaction is being negotiated, until the target completion date in early May.

“The administrators will now work with Mr Phillips and his team to conclude this proposal to allow planning for next season to commence.”