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Sky deal likely to fall if next season is delayed

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By on CQN BLOG & Comments

While it is possible for Sky to broadcast their annual allotment of 48 SPFL games into a truncated period, i.e. October 2020 to May 2021, doing so would unravel the contract.  Under the current deal, negotiated while the world still had a largely functioning economy, Sky agreed to pay £666k (insert your own joke) for each live game for the next five years.

This money reflects the value Sky put on the audience and subsequent advertisers it expected to attract.  As we have touched on before, just about every asset class is worth less than it was before the crisis, which includes current and anticipated advertising revenues.  The size of our economy will be less going forward, which will correlate with advertising spend.

As we know to our cost, Sky pay enough money to choose when games are broadcast.  They are reluctant to put Scottish games on while they simultaneously broadcast games from England.  This splits their football audience and lowers the value of the product.

As it stands, there is probably no more than a 50% chance SPFL football can start season 2020-21 on time behind closed doors.  There is significantly less chance of ticket income that early in the season.  All of this makes next season’s Sky TV deal an absolute must for dozens of clubs across the four leagues.

For those in the bottom two leagues, £1k – £2k per week might be the difference between remaining in business in a semi-professional capacity or going bust.  The £3k – £10k per week available to Championship clubs is likely to be enough for a few of them to keep their heads off the chopping block for a few painful months.

Clubs in the top flight each receive over £20k per week.  That will make little difference to the likes of Hearts, where overheads are significantly higher, but it will go a long way at Hamilton and Ross County.

There is an oddity about football TV deals, they contain non-disclosure clauses.  No one outside of the SPFL board is supposed to know what the terms are, outside of a few agreed facts (usually just the fee and term).  The board cannot openly share details with member clubs, board members are not supposed to discuss the terms with others at their own club.

It is, therefore, likely that some clubs were unaware of the consequences they voted for when they voted against the SPFL’s resolution.  The League’s executives are legally unable to articulate the dangers, although I am sure they hope indiscrete leaks serve to do the job for them.  I suspect that may have happened to give Dundee pause for thought on Friday night.

If reports that Dundee are set to change their vote to Yes, the game here remains solvent in theory only for a while yet, but I’m not convinced it will make any difference to the final picture.  The short list of Third Lanark, Airdrieonians, Gretna and Rangers is set to become a lot longer.

Wasn’t it great to hear Kelty Hearts manager Barry Ferguson say, “we’ll take it”, when the Lowland League ended the campaign and made them champions?  None of this ‘null and void’ nonsense for Barry!

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  1. Canamalar it looks like OCD obsession on

    Gene,

     

    I’m thinking quite a few of the no votes have applied and been knocked back and the no voters havering about integrity and the lack of knowledge about the loan option is just their way of trying to force the SPFL into conceding high risk loans.

     

     

    The SPFL should IMO should make the call that the resolution is defeated and that clubs can apply for loans based on their current positions and that commercial guidelines will be applied to the decision making process, therefore if the clubs accounts are demonstrating financial distress then they are deemed high risk and will not qualify for a loan.

  3. bankiebhoy1 on

    Logged in again – cool as ye like an’ sharpish………..

     

     

    What happened to those inflamatory allegations aboot wrongdoin’????

     

     

    And what aboot the alligators????

     

     

    ( if it had been one of Ours, there’d be men bitin’ dugs and crows flyin’ backwards)

  4. Canamalar it looks like OCD obsession on

    Quite a few club rely on the goodwill of their board members bailing them out, no bank overdraft facility.

     

    When times are like they are, board members will be keeping their money firmly in their own pockets to ensure their own personal survival.

  5. Canamalar it looks like OCD obsession on

    I suspect most of the clubs that have made the most noise would be among the first to go.

  7. martin42 on

    Vogue printer 6.12,

     

     

    I am Paul 67s old man.

     

     

    the Martin Brennan on the STV news is my cousin who is the provest of Inverclyde.

     

     

    the big difference is that I am much more handsome than he is.

     

     

    Martin42

  10. Stephbhoy67 on

    I would be happy with a 14 team top league so long as there was 2 up 2 down and a playoff between 12 vs 11 to avoid THE drop followed by a playoff against winner of play off in a 10 team championship.

     

     

    Relegating one team and making the team that finish in the play off spot massive favourites by finance and rest time etc. Is not fair

     

     

    HH

  13. Canamalar it looks like OCD obsession on

    I see the Tory’s are telling the world that 12.5% of are homes have been affected by their pandemic while the care home owners are saying 66% is closer to the mark and the difference is as previously opined, because the no tests are being done.

  15. fairhill bhoy on

    Would the sfa need to get the ok from the clubs before giving out loans.

     

    Honestly who would in there right mind sanction a loan to that basket case

  16. Saint Stivs on

    ST TAMS on 14TH APRIL 2020 7:28 PM

     

    I hear that Dundee are releasing a statement at 20.00

     

     

    2nd rangers will have one out about 15 minutes later

  21. voguepunter on

    MARTIN42 on 14TH APRIL 2020 7:20 PM

     

     

    Martin, I was saying that to my wife ” looks like him ..just a bit older and not as handsome”.hh

  23. marspapa on

    MARTIN42 on 14TH APRIL 2020 7:20 PM

     

    Vogue printer 6.12,

     

     

     

     

     

     

    I am Paul 67s old man.

     

     

     

     

     

     

    the Martin Brennan on the STV news is my cousin who is the provest of Inverclyde.

     

     

     

     

     

     

    the big difference is that I am much more handsome than he is.

     

     

     

     

     

     

    Martin42

     

     

     

    And Modest , ya aul bugger…… :))))

  24. FAVOURITE UNCLE on

    MARTIN42 on 14TH APRIL 2020 7:20 PM

     

     

    Was his name john.Was he a footballer with CLYDE.

  25. bognorbhoy on

    Stolen from e tims

     

     

    Steven R

     

     

    Why are people surprised that the SPFL/SFA wont lend sevco any money – after all, their mantra had always been NO TIC.

  26. Neustadt-Braw on

    thanks for the wine tips WDH…..Hungarian and Lebanese ….you must have a braw palette….

     

     

    smiley i like wine but stay away for the most part thing

     

     

    would be drinking pints and pints of the stuff as I love the drinking part of drinking if you know what I mean….hahahahaha

     

     

    German wines are quite good ..Nahe is the one I know best….

     

     

    if my lotto comes up we will drink a 72 the gither!

     

     

    Braw

  27. bankiebhoy1 on

    any…….oootrage at the huns an’ thur trumped-up “charges”……?

     

     

    Naw?

  30. i'vehadtochangemynamebacktojackiemac on

    Dearest Alex Rae

     

     

    The following is a list of the great Celtic Minded who have caused your current predicament

     

     

    …

     

    …

     

    …

     

    ..

  31. Hrvatski Jim on

    Non football post

     

     

    Ricky Ross is having a John Prine special tribute tonight on Radio Scotland. Still 70 minutes to go.

  33. Teuchter ár lá on

    Reading earlier aboot the proposed new name for the next reincarnation of the Dob’s, I was mightily surprised not to find Bankiebhoys name when I scrolled back to the top o’ the post.

     

    He must have,however,been rather influential. 😂

     

    Third Klanark CSC

  40. Go tell the Spartim on

    Seeing as The Rangers are practically sunk could we not offer to lend them money for some security 🤔 if they have anything to use for leverage

     

     

    Imaginingthepermarage CSC

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