SPL and SFL should merge, says SFA boss Stewart Regan

Jun 9 2011 By Hugh Keevins

SFA chief executive Stewart Regan last night called for a merger between the SPL and SFL.

The Hampden chief, whose football revolution began with the removal of the SFA’s outdated committee system, believes Scotland is too small for two league groups.He said: “I’d like to think that, over time, we could get to one league body. I think two league bodies in a country of five million people isn’t particularly helpful.”It makes it difficult to move forward in a speedy way.”But last night the SFL’s chief executive David Longmuir hit back at the SFA chief.Longmuir said: “We have a system that works for us.”I’ve spoken about amalgamation, and I’m not shying away from the subject. But I’m trying to bake a cake, not slice it up differently.”But Regan insists pooling resources is the way ahead.He said: “There are a lot of different agendas and differences of opinion. But I think one league body would be a massive step forward.”I would urge the leagues to consider not what they can’t do, but what they can do.”Could they achieve play-offs, which have been one of the best things the Football League in England has done for years and years?”Can we look at opening up the bottom of the league to create a pyramid system?”Can they look at a winter break to focus on performance?”I think there are lots of things we can do, but they are not going to happen overnight. We need consultation and discussion.”But I think that now we have a Professional Game Board it gives us a perfect place to have these discussions.”It’s got the right people round the table to talk about the professional game.”

(Daily Record )

Forget English Premiership.. Old Firm are best off in the SPL, says finance expert

Jun 9 2011 By Gary Ralston

 

A LEADING football finance expert has told the Old Firm they are better off in the SPL.Accountancy firm Deloitte have published their annual report on football finance – and it is a worrying read for English Premiership outfits.Top clubs were £3.5billion in debt to the end of 2009-10 season and wages are spiralling out of control, up five per cent to over £1.4b a year.Premiership revenues smashed through the £2b barrier but wage cost increases of £64million exceeded the rise in revenues of £49m.There is now a record wages to revenue ratio of 68 per cent in the Premiership – and it’s a staggering 88 per cent in the Championship.The Old Firm have spoken about their desire to move to the milk and honey of England but Alex Byars of Deloitte has warned the cream could easily curdle.He reckons they are better off staying in Scotland where success in the SPL opens the door to lucrative European earnings.Byars said: “Rangers and Celtic have significant financial advantages over other clubs in the SPL because finishing first or second in the league allows access to UEFA competition and additional revenue sources.”The Old Firm already boast strong matchday revenues in comparison with other clubs in Europe and their share of UEFA broadcast revenues is also quite lucrative.”There has been talk of the Old Firm joining the Premiership for a long time but if it was going to happen you’d think it would have happened by now.”You would expect them to slot into the middle tier of Premiership clubs were they to be given access but they are the ones who find it most difficult to turn a profit.”Clubs like Spurs, Arsenal, Manchester United and Liverpool are all generating operating profits and newly-promoted clubs can make profits too as they have low cost bases.”However, the clubs between seven and 15 in the league face the biggest challenge. They must decide whether to bridge the gap to the teams above them or settle for mid-table, which may not be exciting for their players or fans.”TV revenues are more significant in England but for every pound clubs get from broadcasters they are paying it out on wages. Don’t forget Old Firm fans are also used to seeing their teams win every week and that wouldn’t happen in the English Premiership.”The Deloitte report shows the average SPL wage to turnover ratio is a respectable 61 per cent and Byars says our top league is in relatively good shape after years of boom and bust saw Livingston, Dundee and Motherwell enter administration.The total turnover in the SPL was 208m Euros to the end of 2009-10, matching the Greek league. That’s better than Denmark, Norway and Austria and only marginally behind Belgium and Portugal on 234m and 238m Euros respectively.Amazingly, revenues from matchdays in Scotland sit at 99m Euros. That is only five million Euros less than the Eredivisie in Holland, which turns over 420m Euros a year. The Dutch total is more than any other league outside the big five of England, Germany, Italy, France and Spain.Scotland attracts around the same in broadcast revenues – 51m Euros to 54m – but the Dutch get more than four times as much from sponsorship and other commercial streams.Byars added: “The SPL is among the group of major non-big five European leagues and is holding its own pretty well.”There is a financial realism in the SPL and that has been necessary. The collapse of Setanta forced clubs to look closely at their budgets and the wage to revenue sits at 61 per cent, which is healthy.”Premiership sides sat between 58-62 per cent between 1999-2008 and it’s only in the last couple of years it has crept up to 68 per cent. We’d like to see it closer to 60 per cent.”However, there is no reason why any club in the Prmiership should go into administration. There’s plenty of revenue coming in and it’s growing.”Football across Europe shows revenue growth in times of recession many other sectors of the economy would loved to have emulated.”Cost control is still a challenge but steps have been taken by UEFA initiatives such as financial fair play.”Still, we have seen a Premiership club, Portsmouth, in administration. That was down to bad management more than anything else. We hope it’s a one off and serves as a warning to others in England’s top flight.

(Daily Record )