Fraser Wishart, the PFA Scotland chief executive, has called on Scottish football's governing bodies to implement rules which will stop "reckless" owners from killing clubs.

That comes after Dunfermline Athletic have been driven into administration, and to the brink of extinction, following the ownership of majority shareholder Gavin Masterton.

The former Bank of Scotland managing director has overseen the accruement of a debt of around £8.5m, forcing administrators PKF, led by Bryan Jackson, to take over in a bid to rescue the 128-year-old Fife institution.

Part of that has involved making a number of first-team players redundant and the likes of Jordan McMillan, Joe Cardle and Andrew Barrowman were let go yesterday. Three members of the youth teams were also expected to be made redundant as the squad paid dearly for the club's financial plight.

"I think we really have to look at the governing bodies taking control of the situation and beginning to monitor the spending of football clubs," said Wishart. "They have the power just now to investigate the club's finances and we almost have to save the clubs from the current owners.

"The clubs have been here for over 100 years – Dunfermline are an old club – yet the fans, players and staff suffered because of the owners' reckless behaviour. Other than sanctioning clubs when they get into difficulties, we don't seem to be doing anything."

Wishart has been called in to provide mediation and advice at a number of clubs over the past 13 years. Dunfermline follow Dundee, Livingston, Gretna and Rangers in entering administration. It is little wonder, then, that Wishart cut such a dejected figure after he emerged from a three-hour meeting with Dunfermline players yesterday.

"It's yet another sad day for Scottish football," he said. "I first got involved in administration in the late years of the last century and in the early years of 2000, one of them being with Bryan Jackson. I don't think we've moved forward at all in terms of governance. We wait until clubs run themselves into the ground and then we sanction them."

Those players released have until Sunday to secure employment, when the deadline falls for Scottish clubs to register free agent, although it is unlikely they will be able to transfer their registration to a new club with, effectively, one working day to complete the process. That will leave those players made redundant facing four months without work.

Wishart confirmed he has contacted the Scottish Football League and Scottish Football Association regarding attaining special dispensation to extend the deadline for Dunfermline's players. However, he fears time has run out.

"I've asked the SFL and SFA if there could be special dispensation for these lads," he said. "That normally requires FIFA to give their approval, which they will do – but whether it can be done in time is another matter. If this had been done a month ago or maybe six months ago when the first warning signs were there then of course they'd have a chance to play.

"Our guys are different from other employment. They're hamstrung by the regulations so you've got to feel for the lads who've left."