Lyric discussion by gbbw 

Cover art for Neil Jung lyrics by Teenage Fanclub

In fact the song is about Duglas T. Stewart, BMX Bandit's leader and long time friend of Norman. Norman was himself in the BMX Bandits for a long time.

It's a song about a destructive relationship Duglas was in. The key is the "you dropped a letter from your name" phrase (Douglas --> Duglas).

This has been mentioned by both Norman and Duglas in the past:

https://www.theguardian.com/music/musicblog/2016/mar/09/teenage-fanclub-10-of-the-best