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Gills chairman faces court battle over loan row

Gills chairman Paul Scally
Gills chairman Paul Scally

Gillingham Football Club chairman Paul Scally is heading for a High Court showdown in a row over a six-figure loan.

The 55-year-old businessman owes two Watford Football Club directors £250,000, it is alleged.

Valley Grown Salads, a company owned by brothers Giacomo and Vincenzo Russo, has issued a writ against Mr Scally.

It demands repayment of the money with interest, which takes the total claimed to more than £283,500.

Mr Scally, formerly of Crouch, Sevenoaks, but who now lives in Dubai, said the legal bid was served on him about a month ago.

He said: "I am defending it, but it is a private matter and has got nothing to do with the club. I haven't got anything else to say."

Valley Grown Salads, which supplies produce to three major retailers, has lent millions of pounds to Watford FC secured against its Vicarage Road ground.

According to the writ, 53-year-old Giacomo Russo agreed to make a short-term loan of £250,000 to Mr Scally in December 2007 after he asked for financial assistance.

The writ goes on to allege that Mr Scally failed to enter into a formal written agreement for the loan and has failed to repay any of the money.

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