The administrators have moved into City Stadium

Two of Stadia Investment Group's subsidiaries this week went into provisional liquidation, while Livingston went into administration.

But Masterton said: "The debate that has been taking place has actually put together the football club's finances and the joint venture's finances as one, even though they are completely separate."

Stadia had gone into partnership with Livingston in an office and hotel development at the club's City Stadium.

Long-time Dunfermline Athletic director Masterton stood by his belief that developing office blocks, hotel and conference facilities and nightclubs was the way to solve cash-flow problems for football clubs.

"You just can't expect to get immediate cash back within six months," he told The Herald.

"That is a five to seven year programme before the benefits will come back.

"I don't think there is any other industry in the world where you have a stadium costing �10m to �15m and it is used 20 days a year for three hours at a time."

Masterton stepped down from the Bank of Scotland in 2001 after it was merged with Halifax.

Keane hands over control

It is the bank's new bosses who are being blamed by some for tightening the grip that has forced Motherwell, Dundee and now Livingston into administration.

His own club, Dunfermline, are also experiencing difficulties that could end with them following suit.

But Masterton insisted that, during his time at the bank, the main funder of the Scottish Premier League and the banker for 10 out of 12 SPL clubs, money had been loaned in "as controlled a manner as we can".