6/05/2009

Scotish Premier League

The Scottish Premier League is to pay £3m to 12 member clubs from its own funds to tide them over in lieu of money owed by broadcaster Setanta.
Cash-strapped Setanta was due to make the final payment of the season on Monday for its football match coverage.
But, after a second board meeting in three days, the SPL has decided to dip into its own coffers to prevent any clubs facing financial difficulties.
Meanwhile, negotiations between the SPL and Setanta will continue this weekend.
The broadcaster, which last year agreed to pay £125m over four seasons for extending its exclusive live coverage from 2010, has been attempting to renegotiate a number of its contracts because of cash-flow problems.
And the SPL could theoretically terminate its contract with the broadcaster as early as next week.
A television deal is vital to support the economy of Scottish top-flight football.
Several Premier League clubs are thought to be financially reliant on the TV money to keep themselves afloat.
Advertisers pay handsomely for shirt sponsorship and pitch-side displays on the basis that they will have their brand and products shown in hundreds of thousands of homes through television coverage.
Losing a television deal would not only leave the SPL as a whole the poorer but also make a substantial dent in many clubs' finances.
Setanta first won the rights to broadcast live SPL matches in competition with previous rights holder BBC Scotland in 2004.
However, it is unlikely that a free-to-air terrestrial broadcaster could now come close to matching the kind of money offered by Setanta for live coverage of Scotland's top-flight.
BBC Scotland has been broadcasting SPL match highlights on television and the internet while looking to buy up rights to live matches involving Scottish clubs in European competitions.

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