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"Reality is biting. FootbalI got itself in a terrible mess when ITV Digital started throwing money around," explained Scally.
"Everyone took on stacks of debt they shouldn't have taken on and when the TV deal collapsed we all learned a bitter lesson.
"It's been a very hard and bitter three years since then, but I feel we are now looking at a considerably healthier five years ahead."
The chairman is set to make sweeping cuts within the club. He's looking to trim the squad from 29 professionals to 19 or 20 - and he's also attempting to reduce the wage bill from £2.8m to £1.5m. He is currently in the process of rebudgeting the finances to save in excess of £1m.
The issue of players' wages is a major factor in the cost-cutting Scally feels is vital for the club's medium-term future - and that means a number of players who were previously on handsome salaries will have to accept vastly reduced pay deals, or move on - a situation Scally says is becoming increasingly common in the lower leagues.
"Most chairmen are in the same boat," he explained.
"They, too, are talking about players having to become very different animals than they were.
"At this club a number of players have benefited. They have had substantial salaries and you can't blame them because the market went out of control.
"But those used to earning high salaries are now finding themselves earning a fraction of that."
Those comments will bo doubt affect a number of the club's senior players, who are waiting for new contract offers from the club. Paul Smith, Nicky Southall and Barry Ashby are all believed to be among the highest earners at the club - and, if they were fortunate enough to be offered new deals, they will be at significantly lower salary level to what they've become used to over the last three seasons.
Those players whose last deals were negotiated before the ITV Digital collapse will be hit hardest - and may feel the need to move on to preserve their income level. Others may find themselves out of contract and without a club - as an increasing number of pros are now discovering.
The PFA's list of free-agents is larger than ever and Scally says that demonstrates a wind of change sweeping through the game as clubs begin to cut their cloth accordingly.
"It's (the PFA list) more like a book than a list," he said.
"There must be 500 to 600 names being circulated and that figure suggests that times are changing in footbalI. And following on from that, times are changing at Gillingham.
"I am in the process of re-writing our budgets. There will be cost-cutting and redundancies in different areas of the club. There will be marketing budget cuts, business overhead cuts and I'll be looking to trim all other costs.
"The measures I take now will leave this club in a healthier state and if we do happen to get promotion at the first attempt, we will have a strong foundation."