New ownership at Gillingham FC might deliver more than just better football
Foreign investors arrive at Kent's only English Football League team. Will it bring wider economic benefits for the county too?
IN-DEPTH
US property magnate’s takeover of League 2 Gillingham Football Club could be a positive boost for Kent’s economy, but only if the Gills can deliver on the pitch
On the 18th May 1893, a meeting was held at the Napier Arms pub in Gillingham between a group of local businessmen from across the Medway area. The group formed New Brompton FC and appointed a local jeweller and watchmaker Mr Horace Croneen as Chairman of the club. The newly incorporated company purchased a parcel of land in Gillingham which would play host to its first match later that year against Woolwich Arsenal Reserves. The match ended a 5-1 victory to the 11-men from Woolwich however it was the starting gun for a 129 year history for the Medway team.
Fast forward to now, New Brompton FC is known as Gillingham Football Club and they play in the League 2 division of English football. The club remains on the same ground at Priestfield Stadium which now has a capacity of over 11,500 seats, but the first team is struggling in the relegation zone of League 2. After a 3-0 loss in the league to the Class of ’92 owned Salford City, Gills fans were delighted to receive the news before Christmas of new owners. This followed a 27-year period under the ownership of Paul Scally who had received heavy fan criticism and abuse in recent years for his running of the club. Whilst Scally will remain present at the club as a minority shareholder, US property tycoon Brad Galinson has now taken over at Priestfield stadium as Chairman.
Based in Florida, Galinson is a Managing Principal at Mount Auburn Multifamily Real Estate Fund which is a private real estate company that owns and manages a multi-billion dollar portfolio of multifamily assets. This includes apartment blocks and complexes across the United States with the investment team specialising in deals ranging from $30 to $100+ million USD. He is a co-founder in the business, and started the firm following a career at cable television company Home Shopping Network.
Galinson announced he had become the majority shareholder in Gillingham following a video with his wife Sharon on Friday 23rd December 2022. He pledged to reinvigorate the club and back the squad in the January transfer window with an aggressive strategy. The club was in the FA Cup third-round against Premier League side Leicester City FC earlier this month which netted the Gills an additional £85,000 in TV broadcast fees. The team will now turn its attention to survival in League 2 as it fights to go above the relegation zone.
The Tampa Bay-based real estate mogul is the latest in a string of US businessmen investing in UK football teams. This includes Chelsea FC’s £4.25 billion takeover by American investor Todd Boehly’s consortium in May 2022. Whilst Chelsea raked in €258.6m in broadcast revenue alone over financial years 2019/20 and 2020/21, Galinson will have to run a club that had a much smaller turnover of just £4.34m in 2021 (link here).
However, new ownership could be exactly what the club needs both on and off the pitch. Despite the extent of Galinson’s investment in the club being unclear right now, wealthier teams are more successful on the pitch over the long run than rivals with fewer resources. Off the field, if further investment in the clubs facilities and training ground were made, it could have a wider benefit for the local economy too.
Recently, Championship side Millwall Football Club received approval for a new £20m training ground in West Kingsdown, Sevenoaks. The club has further agreed to create an economic development strategy to maximise employment, skills, training, and volunteering opportunities for local residents.
Were Gillingham to make it to the unlikely yet dizzying heights of the English Premier League one day, the club could contribute £300million in Gross Value Added to the economy as well as deliver thousands of jobs locally - equal to the University of Kent’s annual student contribution to the local economy. It was estimated that Bournemouth FC’s promotion to the top flight in 2015 benefitted the local economy by up to £60m - a well-received boost for local businesses. Even a promotion to League 1 could see the club’s annual income from the English Football League and Premier League solidarity payment increase by nearly half.
Whilst the Premier League might be a long way off for Gillingham FC now, Galinson’s arrival might be the perfect boost for both the club’s first 11 and the local economy in Kent and Medway. However, the club will need to avoid relegation to the non-league in the short-term if Galinson and the local economy is to see a boost from new ownership.
KENT BUSINESS NEWS IN BRIEF
Kent received funding for five projects from the UK Government’s levelling up fund however distribution of funds was criticised for being ‘unlevel’ across the county. Kent County Council was awarded £45m to improve the flow of traffic from the UK to the EU but Medway was not awarded any money from this round of the fund. It is all to play for still in the final round of the funding. Yet, after claims of favouritism to the South-East in this round from the Government, not many in the county are feeling optimistic for the next round. Read more on what happened to Medway in Local Authority here.
Sittingbourne-based wholesale distributor Q Catering has published a trading update noting that it has been awarded a sole supply agreement with Independent Catering Management. Q Catering has also launched a new dedicated telesales service, allowing customers to place an order up to 10pm for next day delivery. These new developments will aim to push the company closer towards its goal of hitting £20m turnover before 2030. Read the full story here on Bdaily News.
Sevington inland border facility (IBF), a new state-of-the-art building for inspecting imports from Europe, remains largely unused 6 months after completion. The IBF is located on a 230-acre site and cost taxpayers more than £100m. It has capacity for 1,700 heavy goods vehicles but the only imports being inspected are a few pets from Ukraine. It is now in doubt whether the site near Ashford will ever be used to conduct import inspections on goods of plant and animal original from the EU. The Guardian has the full story here.
In case you missed it, catch-up on this week’s reaction to Chapel Down Wines’ full year trading update below:
KENT BUSINESS LUNCH SPOT
With restaurants in Sevenoaks, Tunbridge Wells and Crowborough, Hattusa is proving popular with locals and business people alike across the county. Hattusa offers Turkish cuisine that blends modern and classic styles to provide diners with the perfect experience. The restaurant aims to offer a fun dining and socialising experience. Main courses start from around the £14 mark in the Sevenoaks venue and the restaurant has received a number of positive reviews. The Post visited last year and would recommend the experience to all. Book a table here:
FINAL THOUGHTS
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