£500k Loss

Discussion in 'Gillingham' started by The Gills PegLeg, Oct 23, 2020.

  1. The Gills PegLeg

    The Gills PegLeg Scally only has one ball

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    Well the club revealed it's accounts yesterday for 2018-19 and it shows that club made a loss of £557,243. Not ideal.

    Some key points from the accounts to be made aware of:

    -Scally's wage reduced from £311,273 in 2017-18 to £167,000 in 2018-19 and he also paid back in full the £90,547 that he owed to the club.
    -£418,000 was spent on relaying the pitch and renewing the drainage which we will all remember happened in the middle of October and postponed a couple of home games at the time.
    - Ticketing income increased from 2017-18 but the revenue was still below the levels seen at the end of 2016-17 accounts.
    -Former Vice-Chairman Michael Anderson was paid back £110,000 of the money he was owed. Outstanding debt to Mr Anderson now stands at £371,868
    - Over £500,000 was spent on investment into the GFC School to improve facilities and increase staffing levels.

    I don't profess to being a financial expert so if anyone has more background in the field and wants to discuss and break it down further please do so. I was aiming to give a snapshot of major talking points from those accounts.

    https://www.kentonline.co.uk/medway/sport/gillingham-reveal-500k-loss-in-latest-accounts-236012/
     
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  2. alwaysright

    alwaysright @ Very Angry Camel

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    It can only get worse !
    Well - I don't suppose the £HALF MILLION + LOSS will have reduced in 2019/20 .... probably got worse when last season was cut short -- didn't Mr.Scally say we're losing £40,000 a month ?..... And then there is the lack of income until next season - which, if Mr.Scally's figure of £40K is correct, will mean that the debt will rise to around £1 Million --- you can see why he wanted his share of the £50 Million loan ( more debt ), that the EPL was trying to force on the EFL.......

    ...... about the only positive to come out of the Club's statement is that it reckons it can cope ( with its' working capital ), for ( no more than ), a year.......

    ....... does the Club assume that 5000 people will return to Priestfield ? We were struggling to get that number last season -- How many will be encouraged to pay £24 / £25 on matchday, when they can see the ( too much ), rubbish on ifollow...... If those performances don't improve, I wouldn't mind betting that a significant number of fans will have become used to their new 'normal ' life - without The Gills, and its' comparative waste of money ( which many won't have - no job / reduced hours etc )
     
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  3. brb

    brb Zookeeper

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    I haven't look at those accounts yet, but for some reason I was expecting total losses of about £1.5M by the end of this season. Not sure how I came to that figure in my head, I think it was to do with something I read elsewhere. We are going to have very difficult times ahead as a club, and regardless of the Chairman's wages, I'm not sure I'd want the hassle, unless a vaccine comes through pronto. No, @alwaysright I said pronto not tonto, albeit it's becoming a bit of a lone ranger game. <laugh>
     
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  4. alwaysright

    alwaysright @ Very Angry Camel

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    brb - I will try to be serious - for a change ----- and I make no apology for being pessimistic !

    Coronavirus has turned the World upside down. There is nothing that is 'normal.' --- when, in the history of politics, would a Conservative Party have 'given away' so much money ?
    Under 'normal' conditions, we probably could expect owners of football clubs to continue to indulge their expensive hobby (even if Mr. Scally has only spent £ 1 of his own money)

    BUT - these are not 'normal' times. Mr. Scally has to consider his own financial future - just like the rest of us. Our decisions, in terms of our own budgets, have taken serious twists thus far - and the financial future of all of us, is as unpredictable as it can get (( except, perhaps, for saying that we're broke - and NOT joking ! ))....... So,

    I may have previously ''flippantly'' suggested that Mr. Scally is in a no-lose situation - and can turn Priestfield into a housing estate and pocket £ Millions for himself -- BUT -- the reality of that scenario is not far-fetched --- and -- who could possibly blame Mr.Scally if he did exactly that ?

    Basically ( and perhaps within a smaller nutshell than some may see )), the future of Gillingham Football Club, is at the whim of one person - Mr.Scally. I fully expect him to persevere for a while -- but-- just how much more debt is he willing for us to incur - debt that has the greatest affect on his 'investment.'

    Would you continue to allow your favourite hobby to burn £Millions - that you haven't got - when - for doing nothing but put pen to paper, you could walk away with £Millions..... well - what would you do ( in these abnormal times )?
     
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  5. gioblues

    gioblues Well-Known Member

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    Sure we got Egan money when he went to sheff utd that paid for pitch. Hoping Dack moves on in January otherwise will be a lot more than 500k.
     
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  6. brb

    brb Zookeeper

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    Now you mention it, I do remember something occuring at the time that I thought paid for the pitch. <ok>
     
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  7. alwaysright

    alwaysright @ Very Angry Camel

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    Well - the fact that we got money for Egan is something that Mr. Scally doesn't want to remind us - but is keen to remind us of the cost of the new pitch....... and, perhaps to justify the low player budget ( as claimed by Evans ).
    What is obvious is that our finances are fraught - along with probably several other L1 and L2 clubs. That status can only get worse -- but how much worse will Mr.Scally allow ( to his personal disadvantage ), before he's had enough ?127 years of history could disappear in a heartbeat.
     
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  8. brb

    brb Zookeeper

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    Truthfully, I'd never buy our club, even if I had the money. I might be mad supporting them all these decades, but I wouldn't be that insane with money.

    Owning a football club, carries a lot of pressure and damaging affects to your health, that our chairman will only know to well. Would I be happy if he binned us off, no, would I blame him, no.

    Football is no longer what we grew up to know and love, ask Man Utd and Liverpool about that. I'm just grateful I grew up to see the real side of the game, with no regrets whatsoever.
     
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  9. brb

    brb Zookeeper

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    What disheartened me was when I saw somewhere he supported the initial Premier League package, ok he's a businessman, but for me, it was like, that's it I'm out, stummped at the wickets. I'll just take the long walk and just remember football for what it once was.
     
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  10. grumpygit

    grumpygit les misérable

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    I haven't looked at the fictional accounts from Roy of the Rovers yet.
    Sorry these are apparently the Gillingham fictional** No** financial accounts.

    I will have to peruse them.
     
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  11. gioblues

    gioblues Well-Known Member

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    Makes it more surprising that we did not sell Ogivile or Tucker to try balance books if we did get offers. Will we ever know how much we got for Hanlan
     
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  12. itstimupnorth

    itstimupnorth Well-Known Member

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    Just keep in mind that these are the accounts for, effectively, the 2018-19 season, when COVID-19 was confined to bats or pangolins or some other nominally harmless wild creature. This was just a 'normal' season.
     
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  13. gioblues

    gioblues Well-Known Member

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    Sure Scally also won the case against the caterers center plate Nov 2017 , not sure when we would get paid for that
     
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  14. itstimupnorth

    itstimupnorth Well-Known Member

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    Think that went into the 2016/17 accounts as a post year end event
     
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  15. gioblues

    gioblues Well-Known Member

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    Would be 2017/18 accounts at least
     
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  16. alwaysright

    alwaysright @ Very Angry Camel

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    Didn't much of the money get used to repay / payoff one of the Directors -- the guy the US ''wanted'' ..... I should make an effort to recall/ find his name -- but can't be bothered.
     
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  17. The Gills PegLeg

    The Gills PegLeg Scally only has one ball

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    Try looking at my first post where I've mentioned him <laugh>
     
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  18. alwaysright

    alwaysright @ Very Angry Camel

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    Well, we've had all sorts of money - from transfer fees - e.g. Egan, Dack, Norris, Gazzaniga, add-on such as Bertrand & Freeman We've had Centre Plate money ( over a £1 Million ). All things considered, the club have reaped a lot of money - and spent very little ---- other than to pay off ex players , managers , solicitors , a bit of grass...... but not much on players... and yet we still owe a shed load to people like Anderson.....
    ... We're in a financial mess - and not all of it is not our fault! It is to be hoped that we can survive until next season - because that is the earliest any of us are going to be allowed into Priestfield.
     
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    Last edited: Oct 30, 2020
  19. gioblues

    gioblues Well-Known Member

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    Small clubs like us have to sell players to break even. Unless we can get over 6000 average we will struggle. Now we can't get 6
     
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