The cost of curtailing last season’s SKYBet League One season and starting the new one behind closed doors has been brought even sharper into light for Gillingham fans as the club’s financial statement for the previous year have been published – and show bad news!
The figures don’t make good reading as they show a loss of over half a million pounds – a trading loss of £557,243 for the period up to May 31st 2019 – a full nine months before season 2019/2020 was suspended due to COVID19 pandemic.
The figures are in sharp contrast to the previous yearly statement that showed the club making a trading profit of £180,591.
There are of course mitigating factors for the loss – there was the relaying of the Priestfield surface during that period with the new pitch costing nearly £420,000.
There was also the increased investment in the GFC school; less funds received for player sales as opposed to increased expenses, and a decrease in ticket income despite an increase in sales on the previous twelve months.
The statement goes on to make the worrying statement that because of the impact on the game from the COVID19 pandemic and the ongoing situation “there is a material uncertainty relating to these events that may cast significant doubt on the company’s ability to continue as a going concern.”
It concludes however “The directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for at least 12 months from the date of approving these accounts.”
With the continued absence of fans looking to be extended into the winter months, Gills Chairman Paul Scally knows the problems will surely only continue as autumn turns to winter.
The Chairman has recently been quoted as saying “It is unknown when supporters will be allowed to return to stadia, and normal income streams resume, as a result the club has significantly reduced costs in all areas, including staffing costs, and despite all banqueting, conferencing and other non-football incomes also ceasing, the directors are confident the business can continue, in challenging times for all, albeit playing football behind closed doors.”