INCREASING the annual income of the SPFL from £28.4m to £50m by 2029 is an achievable target – but Rangers refusing to agree to the terms of the cinch agreement could make potential sponsors “wary” of investing in Scottish football in future.
That was the response of Kieran Maguire, a lecturer in football finance at the University of Liverpool and the host of the Price of Football podcast, last night to the ambitious goals which have been set for the governing body.
The findings of an independent review into the finances of the game in this country that was carried out by management consultants Deloitte were presented to Premiership clubs in December and an innovation and strategy group was set up in January to act on the recommendations.
The report, which was commissioned by Aberdeen, Dundee, Dundee United, Hearts and Hibernian, advises changing the SPFL from "a largely administrative function to a more robust and dynamic commercial structure".
Owners of the Premiership clubs are hopeful that increasing the number of marketing and commercial staff who work at the SPFL will generate millions of pounds of additional income in the coming seasons.
But Maguire warned that Rangers’ decision to opt out of the multi-million pound sponsorship deal the SPFL struck with car dealers cinch – they cited an existing agreement with Park’s of Hamilton – could have far-reaching repercussions going forward.
“I can understand why some of the Scottish club owners feel that Scottish football is getting a raw deal,” he said. “But it is not quite as simple as saying it’s the SPFL’S fault. Everybody has to take some responsibility.
“When the SPFL did have a global marketing agreement, Rangers weren’t comfortable with that, with the cinch deal, and they are not part of it. That makes other sponsors slightly more wary as well going forward.
“Having to get all of the clubs on board is difficult, but it is not impossible. You can agree deals which get universal support. It is in all the clubs’ interests for this to be a success. They all acknowledge this.
“It (increasing annual income from £28.5m to £50m by 2029) is a very challenging target, but nothing is impossible in football. We saw Rangers get to the Europa League final last season. It is achievable.”
Maguire stated that having both Celtic and Rangers – who take on PSV Eindhoven in the first leg of the Champions League play-off at Ibrox tonight - both playing in the group stages of Europe’s premier club competition will be hugely beneficial financially for the entire Scottish game.
“If Scotland regularly gets two teams qualifying for the Champions League then it helps Scottish football in terms of getting global brands who want to buy into the game,” he said.
“If Rangers join Celtic in the group stages it increases the profile of the SPFL indirectly and that will help in terms of boosting revenues.
“The extra revenue they have targeted would be considered very modest by Premier League standards. The extra money will help. But it is not going to move the dial significantly. It is far more important that the clubs qualify for the Champions League. It is worth an extra £40m a season.”
Premiership clubs are set to vote on a new Sky broadcasting deal which will run from 2025 to 2029, increase the number of games which are shown live every season from 48 to 60 and bring in at least £30m a year – a £5m increase on the current agreement.
The new Sky deal will see cost of screening a live game fall from £520,000 to under £500,000 and has been criticised by many supporters – but Maguire stressed that Scottish football suffers because of the huge interest in the Premier League in England in the United Kingdom.
“There are smart, practical, pragmatic people at the Premiership clubs,” he said. “They know they have a good product. But it is not the product that is the problem. It is trying to find the right place for the product to be shown.
“If you benchmark Scottish broadcast income against that of other nations it does appear to be on the low side. Scottish football is probably worth more in its own right. The challenge that it has is that it is competing with English football.
“In the United Kingdom, the prime slots, like those at 2pm and 4pm on a Sunday, are picked up by Sky and BT for the Premier League. That means that Scottish football is going for the less lucrative time slots.
“Sky would rather put money into the Premier League than the Premiership. They want to do both, but they know where the highest ratings are. It is a tragedy and Scottish football is losing out. But Sky are not prepared to pay any more because nobody else is prepared to pay any more. There is not a huge pool of broadcasters who are willing to pay.
“There is a sense of frustration when the clubs compare their commercial deals and TV deals in other countries. But Scotland is in a quasi-unique position. It suffers because of England. The national broadcaster is going to relegate Scottish football to second place when it comes to timings. In the Scandinavian countries and some of the central and western European countries, that is not the case.”
The new SPFL broadcasting deal will allow clubs to show games live on a pay-per-view basis if they are not picked up by Sky and fall outside the blackout window between 2.45pm and 5.15pm – but Maguire feels that could have a negative impact on crowds.
“Clubs can increase revenue through streaming,” he said. “But if you speak to club owners about streaming, they will tell you that they know that is the way forward, but also point out that they have to make sure they don’t cut off their nose to spite their face.
“If people are paying £10 a throw to watch a stream how do clubs attract people to physically watch the matches. It is complex. Gate receipts are still the main source of income for Scottish Premiership clubs.”
