How Dumbarton FC beat the drop – and what SMEs can learn from their business revival

More often than not, football clubs are seen as a billionaire’s plaything, where lavish amounts of money are spent at the drop of a hat on somebody to kick a ball about.

While these mega-rich clubs do exist, numerous clubs in the country operate at a level similar to that of many small and medium-sized enterprises (SMEs) and face the same financial challenges.

The recent problems of Dumbarton FC are a reminder that off-the-pitch business decisions can make or break an organisation, sporting or otherwise.

Dumbarton, Scotland’s fifth-oldest football club, faced financial collapse in late 2024 after entering administration.

Like many distressed businesses, they were battling falling revenues, rising costs and legacy debts. For a time, it looked like the club might fold entirely.

However, thanks to the intervention of Canadian businessman Mario Lapointe, the club has staged a remarkable recovery, forming a new company and developing a diversified commercial strategy designed to secure its future.

There are valuable lessons here for SMEs facing financial headwinds. Whether you are running a football club or a family business, the fundamentals of business rescue are strikingly similar.

Facing up to financial reality

Dumbarton’s first step was the one many struggling businesses avoid – acknowledging the financial difficulties early and taking professional advice.

For SMEs, this might mean speaking with our team of accountants before cash flow pressures spiral out of control.

Too many business owners delay this conversation, reducing the number of options available to them.

Dumbarton’s administrators gave the club a fighting chance by engaging quickly and opening discussions with potential investors.

Bringing in new ideas and new investment

Recognising that football income alone was not enough, Dumbarton’s new owner planned to turn the club’s stadium into a year-round venue, hosting music festivals, community events and youth activities.

When your core product or market is under strain, you must look for new revenue streams.

Whether that is expanding into new markets, offering new services or partnering with others, diversification can help spread risk and unlock new opportunities.

Structuring for survival

Like many distressed companies, Dumbarton was restructured as a ‘newco’, a new legal entity free from some of the old company’s liabilities.

While this approach is not right for every business, it is one of several restructuring tools available under UK insolvency law.

For SMEs, this highlights the importance of understanding your legal and financial options.

With the right advice, businesses can restructure debts, renegotiate terms with creditors or in some cases start afresh under a new structure.

Keeping your supporters onside

Perhaps Dumbarton’s greatest asset was not on its balance sheet but in its fanbase.

Supporters raised thousands of pounds to cover wages during administration and kept the club’s spirit alive when finances were at their worst.

SMEs should not underestimate the power of loyal customers, employees and community supporters.

Communicating honestly, involving them where possible and demonstrating a clear recovery plan can turn stakeholders into allies during difficult times.

Final whistle – Four lessons for SMEs

Dumbarton’s story is a reminder that business challenges, like football matches, can turn around with the right approach.

For SMEs facing tough times, here are some lessons from the club’s revival:

• Face the facts early – Financial difficulty will not solve itself. Seek advice as soon as challenges arise.
• Diversify to survive – Do not rely on a single income stream. Explore new opportunities and markets.
• Use the right legal structures – Restructuring, administration, or new company formation can all be part of a viable rescue plan.
• Engage your supporters – Whether customers, employees or community partners, your stakeholders can help you through tough times.

Turnarounds are rarely smooth, but they are possible. With a clear plan and the right support, businesses can weather financial storms and emerge stronger.

We support businesses through every stage of the financial cycle, from growth to crisis management.

If your business is experiencing financial difficulty, our specialists are here to support you. Contact us today for assistance.