Scally's grim warning ahead of bank meeting
Published: 00:00, 14 November 2005
Updated: 14:37, 14 November 2005
GILLINGHAM chairman Paul Scally has admitted that administrators could be brought in unless the bank agrees to his new proposals.
Mr Scally has labelled it a make or break week for the club as he travels to Scotland on Wednesday to convince the club’s bankers that the current debts can be managed.
The Bank of Scotland will need convincing Mr Scally is able to reduce the club’s £9.5 million overdraft, or they could bring in their own people to oversee the cost cutting.
Mr Scally said: "They’re not wheeling a big stick at us, but they do want to see the situation turned around. Last year we made £1.6 million losses but this year we’ve decreased it to £400,000 and we’re going the right way.
"They can say they don’t accept my plans, then they could bring someone else in to run the club as administrators. I don’t expect that to happen. I’m always optimistic or I wouldn’t be putting this to the bank. It’s a plan that can be achieved providing the bank can be convinced."
The club are currently paying £550,000 in annual interest repayments and Mr Scally received a setback last week when the Inland Revenue rejected a proposal to ease the pressure on the club’s finances.
Although Mr Scally is remaining positive ahead of his trip, he admits more cost saving measures will have to be introduced, including reducing the size of the club’s squad.
He said: "They want to see the debt isn’t getting any worse. They’ll want to see improvements in trading, we can’t keep making losses. We’ll need to make more cut-backs. We currently have 27 professionals and that needs to be reduced to 21."
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Luke Cawdell