Football is often viewed as the playground of wealthy owners, where fortunes are spent without hesitation.
But outside the glare of the top leagues, many clubs operate more like small and medium-sized enterprises (SMEs), grappling with the same harsh commercial realities.
Dumbarton FC, one of Scotland’s oldest football clubs, offers an example of how financial difficulties off the field can threaten the very existence of a sporting institution.
By late 2024, the club had slipped into administration, facing mounting debts, shrinking income and spiralling costs. Its future looked bleak.
Yet, against the odds, Dumbarton turned things around. With the help of Canadian entrepreneur Mario Lapointe, the club restructured, refreshed its business model and secured fresh investment.
The strategies behind this revival offer practical lessons for SMEs tackling tough financial climates.
Confronting the crisis head-on
One of the most important things Dumbarton did was act early. Rather than ignore the financial warning signs, they brought in professional help and looked for solutions before things became irreversible.
For SMEs, this means engaging financial advisers sooner rather than later. Delaying these conversations can shrink your options and increase the risk of insolvency. Dumbarton’s timely response gave the club breathing room to explore rescue options.
Rethinking the business model
Football clubs cannot survive on matchday income alone, and Dumbarton’s new owners recognised this.
They looked beyond football, developing plans to turn the stadium into a vibrant, multi-use venue hosting concerts, community projects and youth sports.
This kind of diversification is critical for SMEs. When your main income source is under pressure, exploring new markets, products or partnerships can spread risk and boost resilience.
Finding the right legal route
Dumbarton was relaunched under a new company structure, enabling it to leave behind some of its historical liabilities.
While not always appropriate, a ‘newco’ approach is one of several restructuring options under UK insolvency legislation.
For SMEs, understanding these legal options is crucial. With expert guidance, it is possible to renegotiate with creditors, restructure debts or even form a new legal entity where circumstances demand it.
Rallying your community
Perhaps the most inspiring part of Dumbarton’s recovery was the role played by its supporters.
Fans raised funds to pay players’ wages during the administration process and kept the club’s spirit alive when prospects looked grim.
For SMEs, loyal customers, staff and community partners are often your greatest strength.
By communicating openly and showing a credible recovery plan, businesses can turn stakeholders into supporters who will stick with them through challenging times.
Key takeaways for SMEs in distress
Dumbarton’s escape from collapse shows that, like in football, a turnaround is possible when the right steps are taken. Here are four key lessons for SMEs:
- Be honest and act early – Do not ignore the warning signs. Professional advice gives you the best chance of survival.
- Broaden your horizons – Relying on one income stream is risky. Explore diversification to build resilience.
- Use restructuring options wisely – The right legal structures can give struggling businesses a second chance.
- Engage your supporters – Build trust with employees, customers and your wider community.
A business turnaround is rarely smooth, but with determination and the right help, it is achievable.
If your business is struggling financially, speak to our experts today to explore your options.