Murray hits out at SPL over Setanta deal; Rangers honorary chairman

0 Comments | Sunday Herald, The, Mar 21, 2004 | by EXCLUSIVE BY MICHAEL GRANT

DAVID Murray has launched a stinging criticism of the SPL for agreeing a television deal with Setanta Sport rather than the BBC. Murray said he feared Scottish football could "end up in a Nationwide situation" and criticised the SPL for declaring the deal was done before Setanta's resources had been fully investigated.

SPL auditors are still carrying out due diligence to satisfy themselves about Dublin-based Setanta's accounts, but the governing body have already announced that a (pounds) 35 million, four-year deal has been agreed in principle. Nine SPL clubs voted to accept Setanta's offer at a Hampden board meeting last month, with only Rangers and Celtic voting against and Dundee United abstaining.

Celtic chief executive Peter Lawwell said his club voted against because the deal was too long. Talking exclusively to the Sunday Herald, though, Murray revealed that his own opposition was far more wide-ranging.

"I'd have done the BBC deal without a shadow of a doubt," said Rangers' honorary chairman. "It's safe, it's secure, it's not as many games being shown live. I would rather have certainty. There must be uncertainty at the moment because we're doing due diligence on Setanta.

"What the SPL have done is like buying a house without doing a survey first. I don't think it's in the best interests of Scottish football."

The BBC offered (pounds) 6m a year to broadcast 24 live games, compared to Setanta's 38 matches, but the offer excluded two Old Firm games per season. Murray's contention was that those games could have been sold on a one-off basis for (pounds) 1m a time, meaning the overall income was equal to Setanta's offer and far more secure.

"Financially the BBC deal might not have been any less than Setanta's. So why have the clubs done it? I think some of them wanted to announce it, to put in their cash flow that they've got this money coming.

"John McClelland [Rangers' chairman] voted against it and came out of the meeting and said to me 'I can't believe this has happened'. Celtic voted against it too. I just think the length of the contract is too long for someone who doesn't have a financial track record.

"That's borne out by the fact we are doing financial diligence. You wouldn't be doing financial diligence on Sky or the BBC would you?"

Setanta Sport recorded an operating loss of almost (pounds) 25,000 in 2001-02, its most recent published figures, and turnover fell to just over (pounds) 2m.

"What I can't understand is why the clubs have gone public on this when it's still subject to due diligence. They have approved it, let Setanta know, and the BBC and others are saying 'well, we've lost it'.

"If for whatever reason the Setanta deal doesn't go through, what then?"

Setanta structured payments will see the SPL receive (pounds) 8m for 2004-05, then (pounds) 8.5m, (pounds) 9m and (pounds) 9.5m over the remaining years of the deal.

But Murray echoes the concerns of those who fear the worst about agreeing a deal with a pay-per-view broadcaster in light of the collapse of ITV Digital, which was unable to honour its (pounds) 315m deal with the Nationwide League and left several clubs on the brink of financial ruin because they had already spent money which then was then denied them.

"My fear is that we end up in a Nationwide League situation," said Murray.

"There isn't much we can do about this now but I just don't feel that people are fully aware.

"The vote's been and gone and it's a democratic vote so you have to accept that. I'm not trying to shut the stable gate after the horse has bolted. But I think people should be made aware and I don't think they have been."

Rangers and Celtic are united in their belief that Scottish football's market value is at an all-time low, and that it is foolish to commit to a four-year deal with Setanta at the moment because broadcasters may be willing to pay far more in two or three years' time.

"I think there is no doubt that football's at the bottom now in terms of its media value and it will improve, definitely.

"I think Setanta has done a great job for itself - it has picked us off when we've been most vulnerable. Its timing's been brilliant and that's why it has gone for four years.

"I hope it works, because it has to. If it doesn't work that's Scottish football in a right mess. I hope I'm wrong but I have serious reservations about the way it's been negotiated and the final outcome."

The SPL are confident that the due diligence process will proceed without a hitch and will report their findings to the clubs at a meeting onMarch 30.

Setanta has put up its entire corporate structure, of 17 operating companies with a projected 2004 turnover of (pounds) 26m, as security against the SPL deal.

Last night, SPL secretary Iain Blair said: "The SPL have followed all the necessary procedures and now we are moving the deal forward. David obviously has his own views, but the correct procedure has been followed."

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