Deal agreed to take Dumbarton FC out of administration

Dumbarton FC are poised to exit administration with a takeover deal set to be agreed. The Sons were plunged into financial trouble on November 18 last year after officials announced they were left with "no option" but to appoint Quantuma, a business advisory firm, to manage the administration process. Fans of the Scottish League One side rallied round, organising a GoFundMe, which has raised over £122,000 at the time of writing.

The money generated has helped to cover player and staff wages as well as running costs. Administrators Quantuma now say that a deal has been agreed that will save the club, and wipe out their debt - with all creditors set to be paid in full. READ MORE: Council's new tax policy branded 'unacceptable' and 'harsh' In a statement, Quantuma said: "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 three 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." READ MORE: West Dunbartonshire charity receive King's Award for service One of Scotland's oldest football clubs found itself in financial trouble after funds which were owed from the sale of development land in 2021 were not received. 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.

Dumbarton's administration led to them being deducted 15 points by the Scottish Professional Football League and contributed to their eventual relegation to the fourth tier..