CHAIRMAN Paul Scally has cancelled Gillingham's pre-season Caribbean trip to Trinidad and Tobago in a first response to the club's probable loss of £2 million following the crisis caused by the collapse of debt-laden ITV Digital.

The sunshine trip, which would have cost the club an estimated £70,000, became the first casualty in what is expected to be a round of swingeing cuts at Priestfield which is certain to impact on the club’s retained list.

All Division 1 clubs have been hardest hit after ITV Digital announced they would be unable to meet the £180 million they owe the Nationwide League for the remaining two years of their contract.

Mr Scally emerged from a five-hour meeting in London to call on debt-laden television giants Carlton-Granada, who own ITV Digital, to come to the table and negotiate a settlement rather than risk a £500 million lawsuit.

“I would urge Carlton-Granada to negotiate for the good of themselves and football,” he said. “Nobody wants it to go legal because that doesn't benefit anyone. It's a very serious matter for all of football.

“The Premier League are behind us, the Football Association and so are UEFA through the Champions' League. If Carlton-Granada don't come to the table and negotiate a settlement, they will find there are no willing partners to ever do business with them again on any sort of contract.”

The League will issue proceedings unless ITV Digital pay £89.25 million in August and agree to enter into discussions over the final instalment of £89.25 million due in August 2003.

If ITV Digital reject this ultimatum, the legal suit would be for up to £500 million, covering money due, damages and costs. Mr Scally believes the Football League are paying a high price for a mistake made five years ago.

He explained: “I would love the Premier League to take us under its wing. "Personally, I believe we made a big mistake five years ago when we failed to take the decision to take 20 per cent of all future income generated by the Premier League.

"We opted for a different deal and it was a big mistake. That was the day we separated. But that doesn't negate the fact that we negotiated a deal with two very big broadcasters in this country which we regarded as safe, that was solid and many clubs took on liabilities, like Gillingham have, on the strength of that money.”

He stressed that few chairmen took money out of football with the majority putting money in but admitted that football had got itself into a mess because of high wages.