SFA lands historic £60m TV deal
Published Date:
07 August 2008
By Glenn Gibbons
ON THE day after Rangers squandered the opportunity to grasp a European windfall, the SFA overcame the difficulties of a torrid economic climate by announcing the most lucrative business deal in their history. The contract with Sky Sports and BBC Scotland for coverage of Scotland's home internationals and the Scottish Cup will be worth upwards of £14million a year – a deal amounting to £60m – eclipsing anything previously secured by the national association.
The agreement will run between 2010 and 2014, a period that will embrace the next two World Cups and the European championship of 2012. The SFA's previous highest earner was the £27m they were paid by International Management Group (IMG) for the right to market the national team's matches between 2006 and 2010.
Under the terms of that contract, IMG would guarantee the SFA the basic sum and, in the event of making a profit beyond that figure, the latter would be paid a share. That has already yielded extra income, thanks largely to being paired with "hot tickets" France and Italy in the qualifying group for the European championship just past.
The new contract, worth between £55m and £60m as a starting point, is similarly structured, bringing the possibility of further revenue in the event of Sky Sports and/or the BBC selling the product globally for sums in excess of the basic payment.
Gordon Smith, the SFA chief executive, was predictably elated by his own organisation's good fortune, while regretful over the elimination of one of his former clubs, Rangers, from the Champions League. The Ibrox side's defeat by Kaunas, he observed, would not help the promotion of the Scottish game in general.
"Obviously, we're delighted with this new television deal," said Smith. "To secure one, at this time of economic difficulties, that is worth more than double our last agreement is excellent news for Scottish football. We invest much of this kind of revenue in the game at grass roots level, which involves putting millions into Scottish clubs, players and coaches in the development of the young.
"Now that we've cemented that level of income as far as six years ahead, we can pre-plan many beneficial schemes, knowing the money is going to be there. I hope people see this for what it is, a sign that Scottish football is on the way up. We've seen remarkable improvement in the national team over the past three years, when they've risen dramatically in the world rankings.
"Our clubs have flown the flag in Europe with distinction, to the extent that Scotland now enjoys a high co-efficient when it comes to seeding in the Champions League and the Uefa Cup. And the contract is similar to the one in which we are presently engaged with IMG, so the chances are, if the Scotland team continues to do well, it will be worth more than the amount at which it is starting off."
While conceding that Rangers' defeat in Lithuania could be perceived as "a blow to our reputation", Smith also sympathised with the Ibrox club over their having to play a vital qualifier at a time of year when they are short of match practice.
"I'm disappointed by what happened for the Scottish game in general," he said. "It never helps your image when something like that happens and I think it is a blow to our reputation. Especially when you remember last season, with three Scottish clubs, Celtic, Rangers and Aberdeen, remaining in Europe past the turn of the year for the first time in ages.
"These early qualifiers, especially against opponents who are already a couple of months into their domestic league season, are always very awkward.
"I know I'm widely regarded as an advocate of summer football, but I'm not actually. What I am in favour of is a lengthy winter break. But I have no authority with regard to the scheduling of the professional clubs. That is a matter for the respective Leagues."
The full article contains 668 words and appears in The Scotsman newspaper.
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Last Updated:
06 August 2008 10:30 PM
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Source:
The Scotsman
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Location:
Edinburgh