Scally: Why we need a new stadium

By Jack Nolan
February 11 2007

Gillingham chairman today answers the main question on Gills fans' minds, "Why Do We Need A New Stadium?" In his Programme Notes, Mr. Scally also gives his thoughts on the "Scally Out" brigade, with an update on the new stadium, and Gillingham's finances.

The Gillingham Chairman started by praising the fans that turned up at Priestfield Stadium to watch The Gills defeat Tranmere in The Gills' last home game, instead of watching the game on TV. Mr. Scally said, "If we can produce the performance, excitement and of course the result achieved in our last home game against Tranmere, then we'll all go home with smiles on our faces. The only people who lost out on the evening are those that didn't show, but to be fair the atmosphere created by our fans in the stadium was top class and you all deserve credit for that.

"There's no escaping the fact that things have been tough over the past couple of years, both on and off the pitch, but I am delighted nonetheless in the way most people have stuck to the task and supported the team through thick and thin. It therefore pains me, and indeed it pains everyone at the club, when we hear and read comments from some supporters that are so far off the mark, so negative and often so damaging to the club and the way in which we need people to perceive us.

"I would therefore like to take this opportunity of spelling out a few truths that may go some way to helping true fans understand just where we are and where we are going so that they can realise that by making ill informed comment, or simply writing rubbish, is actually damaging the very club they purport to support.

Scally then went onto explain The Gills' current finances. The Gills chairman said, "Our financial position has stabilised, is under control and the Bank of Scotland has been, and remains totally supportive of our plans for going forward. There is no crisis, no need for alarm, panic or distress. We have had to manage a very difficult situation that has cost us, and me personally, four lost years - but we are now stable and are rebuilding again. I can't tell you how frustrating this period has been, but we must look forward now and not back.

"The mood within the club is much more positive, but to go forward we must increase our turnover to minimise our losses. Our forecast turnover for this year is £4.1 million, which we are trying to achieve, hence the importance of our new sales team and the success of our new Premier Clubs, which have just been launched and will be paramount in our progress. If our supporters, executive club members and business customers don't support us as in previous years, we will fail and the club will suffer further distress. The facts are as simple as that.

"Against our £4.1m forecast turnover should be deducted direct cost of sales of £310k, current salaries of £2.4m, which includes all players, staff and settlements on players who have left the club. Other costs, i.e., purchases, overheads, stadium, vehicles, training ground etc at a total of £816k, depreciation of £450k which leaves about 124k profit before bank interest and charges, which obviously account for the losses. The Bank has accepted we are unable to afford current interest charges on our £4.1m of turnover and are in the process of considering a restructuring process linked to the new stadium which is essential to the long term viability of your club."

The Gills chairman then answered the question that all Gills fans have been asking since Scally said of his intentions to move Gillingham to a new home. Why do we need a new stadium? The Gills chairman answered that by saying, "Why do we need a new stadium? Priestfield has done the club proud but is very limited in its ability to provide non-football income streams. Our C & B business does contribute c £400k to our turnover but a new stadium, with many social, leisure and hotel facilities, possibly incorporating a casino, attached could produce at least 10 times that amount, without a single ball being kicked. A new stadium will open up numerous income streams, which will stand the club in good stead long after we're all gone.

"The challenge I am working on is to achieve a new home for the club within Medway, with the club having little or no debt, and with additional and consistent income coming in from alternative facilities. To this end, I have this week commissioned a comprehensive feasibility study looking at what bolt on facilities can be added to our new stadium hub to give us greatest value. This study will take 12 weeks, will cost over £40,000 and as an illustration of how serious this project is, I can tell you that Medway Council, who have been tremendous in their support for the club and its relocation, have agreed to fund £20,000 of the cost, with the bank and club funding the balance. The study will examine sites and will look at the contribution our current stadium can make to the overall scheme, and hence what funding gap needs to be filled.

There have also been rumours that Priestfield Stadium had been sold to The Bank of Scotland. Scally quickly denied this however, he said: "To answer one recent spate of mischief making I saw, Priestfield Stadium has not been sold, is still owned by the club but is likely to be used as part of our contribution towards the new arena in conjunction with our debt restructuring as previous mentioned.

"In the interim, we have had to show the world - and specifically the bank - that we can live within our means. That has meant our overall wages and costs must stay generally within the numbers I have outlined."

He then answered the 'Scally Out' brigade. The Gills chairman has recently been subject of abuse from some sections of the Gillingham crowd. In reply to his critics the Chairman said: "Finally, a thought for the "we want Scally out" brigade. If abusing me helps you to vent your frustrations then so be it. However, if I go now there is every chance the club will not achieve what I have set out above and your future will be out of my control.

"When I came to this club in 1995 I stated then, and I repeat now, that I would always do my best for the club, but I would only stay for as long as I was wanted. That remains the case today nearly 12 years on.

"No one could have ever predicted what happened in March 2002 and the devastating effect it would have on our business. That we have kept going, and have such positive plans going forward after four tough years is testimony to everyone connected with the club.

"We have a talented manager and a thoroughly honest bunch of players who do their best for the cause. Sometimes it's not enough, but that doesn't mean they don't deserve our total support. Everyone needs to play their part. Bad comments lead to bad reading and that sells us all short for what we stand for, for what we've achieved and for what we're going to achieve. If you can't hack it the way it is, then best get off the train and we'll do it without you.

"In the next week or so, I'll be arranging a fans forum where you can all come along and have your say. Let's not be anonymous and hide behind other aliases - let's get together and make your points and at least you'll then hear the answers and maybe one or two of you will leave feeling a bit happier. Details will be on the website, in the press and in the next match day programme."

If you want to go to the Fans' Forum, you can download an application form to collect your free ticket. However, just 400 tickets are available for fans so if you want to go, be quick!