Old Firm pull the plug on proposed Scottish channel

SOCCER/News: The deepening crisis in Scottish football worsened yesterday when, as expected, in the morning the two Old Firm clubs vetoed the formation of a new Scottish Premier League television channel, and in the afternoon it became known that the remaining 10 clubs are to have talks about setting up a breakaway league.

While the first decision, by Rangers and Celtic, had a tangible result, killing the SPL channel once and for all, the second may be viewed by the Old Firm as a bargaining ploy.

That, however, could be a risky assumption because there is sufficient anger within Scotland at the Old Firm to provoke dramatic actions.

Lex Gold, the SPL chairman, said: "Never say never about anything." The period of notice from the SPL is two years so any departure would not occur until season 2004-05.

An immediate compromise solution is likely therefore. One possibility being examined by Celtic and Rangers would be the creation of a new "Old Firm TV" which would then sell broadcast rights.

That, though, would mean even more of the limited funds in Scotland going to two clubs and would leave the league even more uncompetitive - Celtic are 41 points ahead of third-placed Aberdeen currently - yet it might be viable financially in the short-term.

The other 10 clubs would not be happy with that, but may have no option but to accept. The fact that there are two camps now was illustrated by Rangers and Celtic issuing a joint statement yesterday explaining their reasons for rejecting SPL TV.

It said: "Regretfully, the Old Firm has elected not to vote for the SPL resolutions to develop SPL TV under the arrangements currently proposed.

"Given our initial support for the concept, the Old Firm has participated fully in the feasibility working groups, SPL board and SPL general meetings.

"Fundamentally, our decision not to support the current proposal is based on the incompleteness of the information available, the high level of business risk attached to the project that is not adequately addressed and a lack of financial substantiation of the plans' assumptions."

While the other 10 clubs' breakaway talk provided a distraction, Gold was not hiding the implications of the Old Firm's refusal.

"There is no doubt this is a serious blow," he said. "The board and the executive of the SPL will now turn its mind to developing other opportunities."

No one is pretending those will be lucrative, although the Livingston chairman Dominic Keane sounded a defiant note.

"Scottish football existed a long, long time before pay TV and it will exist a long time after pay TV has gone."

The crisis has occurred now because the SPL's four-year, £45 million deal with BSkyB - from which Celtic and Rangers receive approximately pounds sterling three million each per year - expires at the end of this season.

The SPL channel was designed to replace the deal and enable the SPL to sell its league to the highest-bidding broadcaster.

Rangers and Celtic had been part of the plans, but last week it became clear that they had major reservations about the financial projections involving SPL TV.

At the same time, the Old Firm clubs are pursuing their ambition to leave Scottish football and play in England and have viewed the turmoil caused by ITV Digital's collapse as a possible opportunity.

There have been informal talks throughout the season with chairmen from the Premiership and, more recently, from Nationwide first division clubs about the Old Firm being involved in any restructuring.

But there are significant legal and historical obstacles to cross-border movement and Celtic and Rangers have another week to ponder them before the SPL clubs meet again next Tuesday.

In Germany, the Bundesliga was reassured yesterday that it will still receive vital television revenue this season despite the fall of the German media giant Kirch.

Wolfgang van Betteray, a bankruptcy expert appointed by Kirch, said a €100 million payment by the company due on May 15th for the league's broadcast rights would be paid.

He added that the pay-TV channel which carries Bundesliga matches live would continue to broadcast at least until the end of the season.

"There won't be any reduction [in money] for this season," Van Betteray said. "In Germany, it's still true that contracts are honoured."

Guardian Service