johnnybluenose
Well-Known Member
Update on Satan-Ta
One SPL club chairman told the BBC that, if the broadcaster goes into administration, it would be "absolutely horrific" for the future of the game in Scotland.
Setanta has too few of the "big" Premier League games, say observers
He went on to say that it will have a massive impact on the whole financial structure of football and restrict the clubs' ability to bring in quality players.
Players would leave the country in search of better wages and jobs will be lost at all levels within the game.
Another SPL club has told BBC Scotland that income from Setanta alone accounts for 33% of their income, while another said it was 20% for his club.
"With cuts already being made for next season, the loss of revenue of 20% would undoubtedly have a knock-on effect on and off the pitch," said a source.
It is feared that the loss of cash from Setanta could force as many as three SPL clubs into administration.
'Weaker' matches
The rights to show the English Premier League - and the subscribers that this pulls in - lie at the heart of Setanta's business model.
But the firm had only about 60% of the subscribers it needed to break even, said Professor Chris Brady of the BPP Business School.
"They have predicated the whole thing on getting those subscribers. The problem is they are taking on Goliath in BSkyB," he told the BBC.
Not only did Setanta have only a small percentage of televised Premier League games but they tended to be "weaker" matches, he added.
There had also been problems with customer service, Professor Brady told the BBC.
Setanta's viability was cast into doubt earlier this year when it lost the rights to show 46 live Premier League matches from 2010/2011.
In future, it will show only 23 games per season, compared with BSkyB's 115, with industry observers saying that thousands of customers would give up their subscriptions.