GILLINGHAM are in better financial shape than most clubs to tough out football's recession caused by the ITV Digital collapse, chairman Paul Scally has reassured supporters.

Speaking to members of the Kent Thames-side and Medway Chamber of Commerce at the club's banqueting suite, Mr Scally said the club had invested money in long-term planning rather than players’ wages.

But he reiterated that Gillingham would be forced to slash operating costs by a quarter and, that unless resolved, the Digital debacle will cost the club £2.7 million this year and a further £2.7 million next season.

While admitting it would be a blow, he added that thanks to careful financial management, Gillingham would be less affected than other clubs.

The chairman stressed: “We are one of the few clubs in the country which has not only made a profit year on year but has invested its money not on players’ wages but on the facilities you see here today. We believe these facilities will produce the underlying money to secure the future of the club.”

The Nationwide League is taking action against Carlton and Granada, joint owners of ITV Digital, to recover the money it claims it is owed, said to be £180m plus millions in compensation.

“If the Football League have no success through the courts, or by other means, Gillingham will take a hit of £5.4 million,” added Mr Scally. “If no-one steps in to cover these monies, we will find ourselves having to reduce costs by about 25 per cent.”