GILLINGHAM Football Club chairman Paul Scally is planning to sell Priestfield Stadium to another company with which he is involved.

He hopes the deal will end three-and-a-half years of crippling debt and financial turmoil.

How?

A company called Priestfield Developments Limited will pay about £9.8 million for the ground. This will enable the club to pay off all but £3 million of its debts.

And the football will continue - with the Gills leasing back the ground.

Mr Scally will announce the proposals - which he describes as "a fantastic package" - at an extraordinary general meeting on December 21.

A letter to shareholders says Priestfield Developments Limited is "a company connected with Paul Scally, a director of the company".

If the resolution goes through it will leave Gills with what Mr Scally calls a "manageable" financial burden.

"It’s a structure that the bank want to work with," he said. “This leaves the football club with a £3 million debt which is very serviceable and it allows us to go forward and prosper.

“This is a fantastic package that the bank have come up with. It means that the club can continue their upward spiral. It puts the club on a very strong footing."

As Mr Scally has 75 per cent of the vote he is unlikely to have any problems pushing through the scheme when shareholders vote on December 21.

Mr Scally acknowledged that not everyone would approve and wanted to calm fears. “No way can the football club be thrown out," he said. "There is security of tenure as long as we are a football club and play football.

“Anyone who looks at it, who is reasonably minded, will see it’s fantastic for the football club - although I imagine I will see at least one person who will find fault in it.”

Upon purchase of the ground the debt will sit with Priestfield Developments Limited and can then be paid off when the club moves into the proposed new stadium.

Mr Scally added: “This will allow Gillingham to only pay interest on £3m and reduce interest payments from around £800,000 to £200,000.

“That’s a huge weight off the club’s shoulders and it allows us to prosper. £3 million is quite manageable and we can pay that off in a couple of years.

“It’s been an horrific time and the EGM will be the final stage.”

A Companies House web search shows the registered office of Priestfield Developments Ltd is the Design Studio at Priestfield Stadium. The private limited company was incorporated in 2001 and is described as "dormant".