Dumbarton plunged into civil war as stricken club’s largest shareholders consider legal challenge to administration

Dumbarton’s largest shareholders are taking legal advice over a bid to overturn the club’s lurch into administration.

Directors of the 152-year-old club appointed joint administrators after agreeing they could no longer pay the wages of players and staff.

In a statement to Mail Sport last night, however, Cognitive Capital – an English-based investment company who own 80 per cent of the club – branded the decision ‘unnecessary’ and ‘reckless’.

Initially an investment vehicle for Norwegian Henning Kristoffersen, wife Kamila Kristoffersen and Manchester-based architect Matthew Atkinson, the company claim that they had new investment lined up last Friday and accused club directors of living outwith their means.

‘Cognitive Capital Ltd, which owns the majority of the shares in the club, do not accept that an administrator has been appointed and the correct procedures to enter administration have not been followed,’ read the statement.

‘We also do not accept that there was a need to appoint an administrator. Legal advice is being taken with a view to taking action to clarify the position.

Dumbarton in action against Caley Thistle, who have also entered administration

The 152-year-old club have been unable to pay their players and staff

.‘The ownership group firmly believe that administration is not only unnecessary but also a reckless move, given that the directors involved were aware of new investment which had been secured on Friday.

‘The club has no CCJs (a County Court Judgment for debt), no litigation, an A credit rating and a very strong balance sheet. This decision, they argue, has been made in bad faith and without requisite authority.’

Landed with a 15-point penalty by the SPFL, the Sons have now slumped to the foot of League One, four points adrift of Inverness Caledonian Thistle – who are also in administration.

Speaking after the Cognitive takeover in May 2021, former director Henning Kristoffersen promised to deliver a ‘sustainable full-time team.’

Just last month, however, the board were forced to appeal for help to raise £10,000 for staff and player wages.

Insisting that they could no longer continue to live a hand-to-mouth existence, the club have now launched a Go Fund Me fighting fund in a bid to raise £50,000.

They claimed this was because the club has not been ‘receiving financial support from the majority shareholder or monies owed to it.’

Disputing that interpretation of the club’s financial woes, Cognitive blame poor budgeting rather than a lack of financial backing from their side.

‘The club’s board sanctioned a 2024-25 budget that predicted a £200k shortfall for the season. This decision was made despite repeated warnings from Cognitive’s representative on the board that the wage budget was unsustainable,’ the statement alleged.

‘Due to this mismanagement, undue financial pressure was placed on the club and, only two weeks ago, Cognitive shareholders were asked to support the wages, which they did as they have done in the past.’

Dumbarton’s most recent accounts showed they were owed more than £1.8million from sale of land, payment of which would be dependent on the completion of a planned residential development of nine homes and 40 flats. After running into planning difficulties with West Dunbartonshire Council, a £300,000 instalment is also listed as overdue.

‘Talk of a £300,000 debt that has not been paid is a red herring, as this was always predicated on the success of development on Castle Road,’ added the Cognitive statement. ‘The board were informed that this would not be available until the property development had commenced. It is simply an excuse for failing to set a wage budget within our means.

‘Cognitive have put over £450,000 into the club since the initial share purchase in 2021 and further new investment had been secured on Friday, but this was ignored by the board, who refused to delay administration even though this injection was imminent

‘The board members kept the move secret and also chose to bypass the fairly standard process of issuing a Notice of Intention (NOI) to appoint administrators.

‘This process would have provided time to finalise the investment options presented on Friday and would have avoided the need for administration.

“Cognitive Capital Ltd will be looking to overturn the invalid appointment of administrators in the coming days and have a funding solution in place to recapitalise the club.

‘We will also take the opportunity to talk to the supporters about a greater involvement in the running of the club. Everyone wants the same thing for the future. A stable and healthy football club. This was an unnecessary and high-risk way of trying to achieve that.’

The joint administrators addressed club employees on Tuesday night to assure them that no job losses are anticipated. Players also discussed their options with PFA Scotland’s Fraser Wishart.

A representative of the board at Dumbarton said: ‘We note the statement from Cognitive, and will be responding appropriately. The directors acted responsibly and according to their fiduciary responsibilities in a situation not of their creating. Our focus is on saving the club and ensuring responsible ownership moving forward.’ 

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