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Gillingham's accounts revealed up to year ended May 31, 2021; club thank supporters for helping to keep club afloat during Covid-19 lockout

Gillingham’s finances during a season without spectators reveal just how much they were reliant on handouts and cost-cutting to keep them afloat.

The club’s accounts, up to year ending May 31, 2021, reveal a pre-tax profit of £339,137 (up from a £175,000 loss the year before) but during the period they also had an £882,800 EFL advance that is repayable in instalments up until April 2024 on top of £1.28m in government grants.

Empty stands due to the Covid pandemic during the 2020/21 season
Empty stands due to the Covid pandemic during the 2020/21 season

The club lost a significant amount of income from gate receipts and commercial sales but were grateful to the fans who still purchased season tickets, despite the uncertainty surrounding the 2020/21 season.

In the end the club played all of their home matches behind closed doors.

In a review of the business, a statement said: “The directors took the view that staff reductions and cost cutting on all areas was essential, which linked to government assistance, managed to allow the business to continue whilst further realignment was put in place."

On the field the club managed to finish 10th in League 1, with the statement from Mr Scally adding: “There was a significant loss in matchday income, plus many supporter related issues to deal with, the likes of which were very challenging to the business.

“The directors would like to place on record their sincere thanks to all supporters who assisted the business, by pledging support, donations, time and consideration, and in particular to all season ticket holders and individuals who donated their season ticket monies, and/or matchday ticket monies to the club, which in turn had a huge positive impact on the club in its challenges going forward.

“Without the tremendous support the club may not have survived the negative effects of Covid.”

During the year the club made use of the government job retention scheme.

All banqueting events, which the year before had been worth in excess of £1m, were also cancelled. Turnover decreased from £6.7m in 2020 to £4.34m in 2021.

Fans were locked out of Priestfield for the entire 2020/21 season Picture: Barry Goodwin
Fans were locked out of Priestfield for the entire 2020/21 season Picture: Barry Goodwin

Ticket sales of £2.4m show the value of those generous supporters but there was, understandably, a drop, from £3.2m the year prior.

There was a big loss in commercial earnings from £479,000 to £157,000 and just £5,665 was made in the shop, compared to the £161,175 from the year before .The GFC School managed to bring in an additional £822,531.

An amount of £283,038 was made in transfer fees. Young goalkeeper Joe Walsh left for a fee when he signed for QPR.

Player levels dropped significantly, from 63 to 42. Total wages and salaries at the club fell from £3.845m to £3.360m.

The loan of £1.8m to Three Directors Limited remains outstanding, but is repayable within five years. The three directors of that company are Mr Scally, Michael Quarrington and Michael Anderson - the club’s former vice chairman. The company is jointly controlled by its directors.

Mr Quarrington was owed £16,366 by Gillingham FC while Mr Scally owed the club £6,055. His own consultancy fee for the year was reduced to £112,361, having received £168,999 plus other costs of £46,345 the year before.

The club continue to seek alternative investment.

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