Chairman Scally reveals cost of Covid for Gillingham
Gillingham chairman Paul Scally has highlighted the club’s financial predicament in an open letter to fans.
He has praised the remarkable effort from those currently keeping the club challenging for honours on the field while he deals with significant losses following a year without fans in the stands.
The season ticket issue is something the chairman says will be addressed soon and he has warned those social media critics that he is prepared to take action. He has also told fans that the club shop, located on Redfern Avenue, will be closed and that a new ticketing system will be introduced.
The club’s finances are under control but Mr Scally revealed that they have deferred £700,000 of payments to HMRC and a repayment plan has yet to be agreed.
The club have taken out an EFL loan of £182,000, repayable over three years, and banked a Premier League grant of just over £400,000. They are expecting an insurance payout of £100,000 for loss of income and have applied to the EFL for a loan from the Premier League’s £20m fund.
Revenue lost from matchday income and banqueting is in the region of £1.5m for the 12 month period while closing
The Factory - the supporters’ bar - has cost them £500,000. Mr Scally says the club’s budget for players and management remains as previous seasons at around £2.6m. He wrote: “I have heard and seen comment that our wage bill is the lowest in League 1, whether that is true or not I frankly don’t know, nor care, but what I do care about is keeping this club trading and around for years to come, long after I have departed.” The Professional Footballers’ Association insisted that their members took wage deferrals as opposed to wage cuts, and they will need paying at some point.
The chairman said: “Our own players and management were very supportive of the club and, I place no blame on them for the actions of the PFA, this was a national issue which has affected all professional clubs.” Season ticket sales from around 1,650 supporters, who purchased before lockdown, contributed £440,000 for this year, and £115,000 for those that bought two year deals. Mr Scally said: “I will be writing to those season ticket holders regarding a way forward for their consideration. It is not a matter we have taken lightly but there is no easy solution if we are to achieve our survival plan. I am confident we will find a solution that works.”