GRETNA (Reuters) - When a self-made millionaire bought the football club of a small Scottish border town six years ago, fans could not have envisaged the dizzying run of success they were about to enjoy -- nor the utter failure that could mean losing their club altogether.

A year after dazzling fans and media alike by winning promotion to the Scottish Premier League (SPL) with virtually the last kick of the season, Gretna FC, abandoned by their benefactor and crippled with huge debts, are on the brink of collapse.

At a meeting with employees on Monday, administrators appointed in March after English owner Brooks Mileson fell seriously ill and severed all financial ties with the club, made all 40 staff, from goalkeeper to groundsman, redundant.

Not all is lost: a potential buyer is in talks with administrators, but the prospect of losing Gretna FC has fans asking whether having a rich benefactor, a phenomenon that is increasingly common in British football, is such a good idea.

"We'd rather not have had Mr Mileson's money if this was the outcome," said Heather Bryden, a Gretna fan of 30 years who used to work on the gate at home games.

Gretna's difficulties, including debts of some four million pounds ($7.92 million), are partly linked to their success. Their pitch, which one former employee said needed 350,000 pounds' worth of refurbishment, was not up to SPL standards, forcing the team to hold all their home matches 120 kms away in Motherwell.

This meant many fans were no longer attending Gretna matches as trips to Motherwell were too expensive.

Heather's brother John Bryden, speaking hours after losing his job as the club's kit man, said that while home games in Gretna could attract up to 1,500 spectators, matches in Motherwell saw as few as 500, a serious blow to the club's income.

PAST GLORIES

Being dependent on the fortunes of Mileson has made other fans consider the past glories of the team founded in 1946, which included reaching the Scottish Cup final in 2006.

With backing from Mileson, they rose through the Scottish league system to the top flight but finished bottom of the SPL this season after being deducted 10 points because of their financial problems.

"It's double-edged. It gives you what we've had the last five years: a decent standard of football to watch, the promotions, the cup final. You wouldn't get that without him," said 23-year-old Darren Bryceson, whose son Declan was the team mascot.

"But on the other hand it can go the other way -­ you're relying on one person."

Even the former management has doubts about whether the club's meteoric ascent was a good thing.

"I'm not blaming anybody -­ but there is a lesson to be learnt from this," said Andy Smith, who joined Gretna FC as a coach four years ago. "I suppose it's to live within the size of the club."

Smith said that at the height of Gretna's success, few had any concerns about the club's future.

"People wrote stories about how good it was. Nobody complained then. None of the players, none of the staff, none of the supporters," he said.

STILL HOPE

While the redundancies at Monday's meeting seemed to spell the end for Gretna FC, the news that someone might be interested in buying the club was welcomed.

"There is still hope. There's one party that is still interested, but they have some details to iron out," said Gretna defender Danny Hall. "Hopefully they'll get it sorted."

The club's chairman Ron McGregor was also hopeful as he emerged from the hotel in Gretna Green where the meeting was held.

"To use an old phrase said by a chap who opened his paper one morning and saw his obituary there: 'I think my death was somewhat exaggerated'," he told reporters.

"That's the position of the football club at the moment: Keep life going until there are no alternatives."

If Gretna FC does fold, players and coaches will no doubt move on to greener pastures but Gretna's fans will be left with only regrets.

"If the club completely goes to the wall now it would have been better to stay in the third division and not gone anywhere," said Bryceson.

"At least we would still have a club to go to and have something to watch."

(Editing by Clare Fallon)