How one football club’s financial turnaround can help your SME

For many, professional football conjures images of wealth and extravagance.

But beneath the glamour of elite clubs, countless teams operate on modest budgets, much like the country’s small and medium-sized enterprises (SMEs).

Dumbarton FC’s recent financial troubles highlight that sporting organisations face the same commercial pressures as everyday businesses.

In late 2024, Dumbarton, Scotland’s fifth-oldest club, found itself at crisis point, dragged down by unsustainable debts, rising costs and dwindling revenue.

Entering administration, its future looked uncertain.

Yet from the brink of liquidation, the club staged an unlikely comeback.

Thanks to fresh leadership and a broader commercial vision under new owner Mario Lapointe, Dumbarton restructured and reimagined its business model, securing its future.

SMEs under financial strain can take note of how this turnaround was achieved.

Tackling problems before they escalate

Too often, struggling companies bury their heads in the sand.

Dumbarton did the opposite. By acknowledging its financial distress early and seeking external advice, it was able to begin rebuilding before options ran out.

For SMEs, early intervention is vital. Speaking to financial advisers or restructuring specialists can uncover solutions before insolvency becomes inevitable.

Looking beyond the core business

Football alone could no longer sustain Dumbarton, so the club broadened its income streams. Plans were drawn up to turn the stadium into a year-round community asset, hosting everything from music events to local youth programmes.

SMEs can take inspiration from this diversification. When your core product falters, consider what else you can offer your customers.

New services, different markets and partnerships can help stabilise income.

Choosing the right legal structure

One of the tools used in Dumbarton’s rescue was a legal restructuring, creating a ‘newco’ to take the business forward without some of its inherited liabilities.

This approach, although not suitable for every business, is one of several available under the UK’s restructuring framework.

Harnessing the support of your people

Perhaps the club’s most important asset was its fans. In its darkest days, they contributed funds to help keep the club afloat and maintained morale within the community.

SMEs also benefit from loyal supporters, whether they are customers, employees or local partners.

Maintaining honest, transparent communication and involving them in your journey can turn passive observers into active allies.

Four business lessons from Dumbarton’s revival

Dumbarton’s recovery shows that adversity can be overcome with clarity and decisive action. For SMEs, the lessons are clear:

• Address challenges early – Delays only make recovery harder. Seek expert advice when problems arise.
• Broaden your income base – A single source of revenue is fragile. Diversify your business model where you can.
• Explore legal solutions – Restructuring or forming a new entity may unlock a fresh start.
• Keep your stakeholders engaged – Transparent communication builds trust when it matters most.

Every business journey has ups and downs. With a realistic plan and support from advisers and stakeholders, SMEs can overcome financial turmoil and rebuild a stronger future.

If your business is facing financial challenges, we are here to help. Get in touch today for guidance on your next steps.