The Dumbarton Football Club has fallen into administration, putting the future of one of Scotland’s oldest senior teams in jeopardy.

Ian Wright and Craig Morrison, managing directors of business advisory firm Quantuma, were appointed joint administrators yesterday, and cited the “non-receipt of significant funds that were owed to the club from the sale of development land in 2021”.

The collapse puts nearly 30 jobs at risk.

The administrators pledged to probe the circumstances of the land deal, without providing further comment.

The most recent accounts for The Dumbarton Football Club, covering the year to May 31, 2023, show that the club was due to receive gross proceeds of £1,848,000 from the sale of land to a related party. It 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, note the accounts, which state that the recovery of the money is "dependent on the successful completion of a residential development on the land sold".

"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," the accounts add.

"An instalment of £300,000 due in April was not received by 31 May 2023 and has been disclosed as due outwith one year, given the uncertainty over the timing of the development."

The accounts also highlight that the company, which is funded by working capital, overdraft facilities and monies loaned by directors, related parties and other third parties, has "faced a number of cash flow challenges in the last year".

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The directors signalled that they would continue to "take steps to align the company's cost base with its income for the 2024/25 season", and stated that it was appropriate to prepare the accounts on a going concern basis. However, they said the cash flow challenges "create a material uncertainty as to the company's ability to remain a going concern for a period of twelve months from the state of signing these financial statements".

This view was reflected by the company's auditors, which highlighted the cash flow challenges facing the company as well as "uncertainty in terms of the timing of future revenues and the availability and timing of external funding". The auditors noted this means the company is "likely to have to rely on additional funding from directors, related parties, and other lenders".

As a result of falling into administration, the Sons will be handed a 15-point penalty under Scottish Football League rules, which would leave them anchored at the foot of William Hill League One.

Mr Wright said: “Craig Morrison and I were appointed joint administrators of Dumbarton FC on 18 November 2024. 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.

“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 was founded in 1872, making it one of Scotland's oldest senior football clubs. The club tasted most of its success in its early days, and won the Scottish Football League in its first two seasons (the first jointly with Rangers).

The club, managed by Stephen Farrell, is now semi-professional, and currently competes in tier 3 of the Scottish Professional Football League, William Hill League One.

Its financial problems come hard on the heels of the collapse into administration of Inverness Caledonian Thistle, also of League One, last month. Until Dumbarton's collapse, Inverness Caley were sitting at the foot of League One following their own 15-point penalty.