GILLINGHAM chairman Paul Scally says that football’s crisis caused by the collapse of ITV Digital had thrown the club into turmoil and that the game is hanging by a thread.

Mr Scally, who returns from a working holiday in Dubai tomorrow with player-manager Andy Hessenthaler, pulled no punches on the implications for the club after ITV Digital administrators Deloitte and Touche last night pulled the plug on the troubled broadcaster.

The decision was taken after the administrators disclosed there had been insufficient interest from potential buyers to justify its continuation. The ITV Digital deal was worth £315 million to clubs with those in Division 1 receiving the bulk of the revenue.

Mr Scally said: “Maybe this has crystallized the position and brought home to people just how serious the problem really is. The television monies that we at Gillingham are now losing represent 40 per cent of our total income. If I am now going to lose 40 per cent of my income, I need to cut costs by 40 per cent.

“That's not very easy to do, but I have to set out a plan to tackle the shortfall. I think football is hanging by a thread.”

He added: “There are many colleagues of mine who were absolutely dreading this situation. We were ever hopeful in the weeks and days leading up to today that an offer could have been made which would have been acceptable.”

On his return tomorrow, Mr Scally must confront a number of unpalatable options as he attempts to streamline costs.

A trimming of the playing staff now looks unavoidable. Gillingham, who travel overnight to virtually all away games, will do most on the day next season, apart from the long haul trips, to reduce hotel costs.