potential landmine ahead for SPL
By: j | June 3rd, 2009With Irish broadcaster Setanta tumbling into deep financial crisis, all Scottish Premier League clubs are facing some highly turbulent days. At present Setanta owes the SPL its final £3m installment but given the companies crumbling business, unless it works out an arrangement with another broadcaster or receives an inflow of capital, not only is the final payment for the 2008/2009 campaign in jeopardy but next years £25m fee as well.
Setanta has until next Monday to pay the amounts owing before going into formal default. Should this occur, each SPL will be faced with some highly problematic cash flow situations and financing credit lines are likely to be tightened considerably.
While this problem is shared by all Scottish Premier League sides, the Gers face a number of balance sheet woes that must be dealt with. Should the existing broadcasting contract go into default the Rangers will likely need to expedite cost cutting measures.
After considerable thought and debate this will serve as my final post on the this blog. If you care to apply for this blog please contact Daryl with The Offside (click here) after reviewing the blogging guidelines at www.theoffside.com/bloggers.
Category: Team News
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This is the best thing that can happen to the SPL. Setenta is a limited market while ESPN or Sky is not paid subscription. So the SPL will be in more homes as it will get a new media contract worth more. Do you seriously think the SPL will simply not be on TV?
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