TV loss would hit SPL clubs hard

02 June 2009 17:00
Both Setanta and the Scottish Premier League have refused to comment on reports the broadcaster had failed to pay a final £3million instalment for the season.[LNB]The SPL also denied claims an emergency meeting would be held by member clubs on Wednesday to discuss the issue.[LNB]However, a league spokesman admitted a number of decisions were being made behind the scenes to ensure the future of their relationship with Setanta.[LNB]The company, who are understood to need to raise tens of millions of pounds of capital in the coming months, have already asked to renegotiate their deal with the SPL after losing one of their contracts with the Premier League.[LNB]The latest development increases the financial pressure on SPL clubs fearing a loss in revenue from sponsorship, merchandise and season-ticket sales.[LNB]Charles Barnett, football industry partner with PKF, said: "This is not what the SPL teams wanted to hear at this stage in the year.[LNB]"Many will have been relying on the Setanta income to fund wages and running costs through June and July and the potential loss of this income could push many of the smaller clubs into great difficulty.[LNB]"The broadcast income is distributed according to a club's placing in the league and, although those further down the league will not receive as much as those at the top, it is likely to be proportionately more meaningful to them financially.[LNB]"These clubs tend to be very reliant on fixed income from broadcast rights, particularly during a period when there are no gate receipts or sponsorship opportunities and very little merchandise income.[LNB]"This means that an already strained financial environment has just got considerably worse."[LNB]The 12 SPL clubs came to an agreement in April following Setanta's request to renegotiate the four-year deal due to begin at the start of the 2010-11 season, which was initially worth £125million.[LNB]Estimates claimed up to £20million could be wiped off the value of that increased deal but the apparent inability to meet one of the demands of their £13.5million annual contract raises further fears.[LNB]Barnett added: "In the worst case, this could leave the SPL looking for a new broadcaster for the coming season with the possibility of substantially-reduced media revenues given the current economic climate and the limited time available to find a new media partner.[LNB]"Football is going through a difficult time at the moment and it seems that this is the latest in a string of very problematic issues to hit the SPL teams.[LNB]"It is to be hoped that they will all survive the next few months but this kind of news makes the likelihood of survival all the more problematic."[LNB]Setanta began their association with the SPL in 2004 after the television deal with BBC Scotland expired.[LNB][LNB]

Source: Team_Talk