D-day for Setanta as SPL Demands Answers on Financial Situation

It is D-Day minus one. Tomorrow could be Black Friday for Scottish football after the SPL gave Setanta until tomorrow to answer on their financial situation. An SPL board conference call took place yesterday and agreed to a request from the Irish broadcaster for time to produce a revised plan after it failed to pay the final £3 million instalment of last season’s television money.

It is understood, however, that the SPL expect some sort of firm proposal to be put forward when they get together for an update on the situation tomorrow. If that does not materialise, then action could be taken to recoup any outstanding monies and clubs are anxiously awaiting the outcome. Another nail in the coffin that is Setanta saw the broadcaster being refused the money needed to fund all of the £100 million shortfall created by the loss of half their EPL rights.

A payment of £35m as part of their current English contract is due from Setanta a week on Monday, while their position was further weakened after boxer David Haye called off his world title fight they had been set to screen. One hope of avoiding a meltdown is that Sky agree a wholesale deal that would effectively make Setanta an addon option to their packages. A £50m proposal is reported to have been rejected by Sky, but it’s possible they could step in on more favourable terms.

‘We are continuing to work very closely with our colleagues at Setanta and discussions are continuing,’ said an SPL spokesman.

The country’s top 12 sides would be staring into a £25m TV cash black hole for the new campaign if Setanta folded, with player wage bills one of the first things that would be slashed. Clubs are already struggling to deal with the effects of the recession—with fears over revenue dips from sponsorship, merchandising and season-ticket sales—and some could be placed in significant financial jeopardy without broadcasting income.

Maybe the SPL should take action now before the season starts and it is too late for them to sell the rights on to another broadcaster. Setanta had eyes bigger than their belly and are now paying the price for it, and the SPL must be ruthless and cut their ties as soon as possible—otherwise, more clubs could go to the wall.