Gillingham FC have launched legal action against former chairman Paul Scally over the £7 million takeover deal that saw Brad Galinson assume majority control of the club.
The dispute has now reached the High Court, where allegations of financial misconduct and breaches of director duties are set to be tested.
Galinson vs Scally in the High Court
The Florida-based property investor acquired a 70% stake in the Priestfield outfit in December 2022, but concerns quickly followed. Scally, who had been chairman for nearly three decades, initially stayed on as a non-executive director before being voted off the board in October 2023. At that point, all ties between him and the club were severed amid what the Gills described as serious concerns about his conduct.
Court documents claim the club’s financial affairs were not fully disclosed during the takeover. Galinson’s company, Up The Gills, alleges Scally breached assurances given in the share purchase agreement and diverted resources for personal gain.
Specific claims include misuse of furlough funds during the Covid pandemic, with staff allegedly told to keep working while officially listed as furloughed. There are also questions over travel expenses, family benefits, and historic loans connected to former vice-chairman Michael Anderson.
One notable detail in the filings concerns a £50,000 loan linked to midfielder Bradley Dack’s 2017 transfer to Blackburn Rovers. It is alleged this liability was not disclosed to the new owners. Dack returned to Priestfield in 2024, adding further intrigue to the case. Additionally, pension contributions, staff treatment, and wider resource management during Scally’s reign are all under scrutiny.
Scally denies wrongdoing
Scally and his consultancy firm, PSMC, deny the allegations. His defence insists he did not breach director duties, rejects claims of fraudulent representation, and argues any suggested losses require independent assessment. He maintains that the new ownership did not rely on false information when investing and disputes any wrongdoing.
The case, overseen by Justice Andrew Henshaw, could be transferred to the London Circuit Commercial Court, which typically handles claims valued between £1 million and £7 million. The next hearing is scheduled for January 22, where the scale of liability and any potential criminal implications may become clearer.
Writer’s View
For Gillingham supporters, this development highlights the turbulence that continues to linger beyond the pitch. Galinson’s arrival was supposed to represent a clean break from the controversies of Scally’s long tenure, yet the shadow of past disputes still looms large. While the current ownership pushes to rebuild trust and drive the club forward in League Two, the High Court battle threatens to reopen old wounds.
Should the allegations stand, the financial and reputational damage of the previous regime could prove deeper than first feared. For now, fans can only hope the case brings clarity and closure, allowing the club to focus on football rather than courtroom drama.
