Setanta (merged)

[ictchris]

http://news.bbc.co.uk/1/hi/business/8090633.stm

"Setanta faces administration "within days" unless backers provide more funds to pay ?30m it owes to the English Premier League, reports suggest."

3 SPL clubs possibly forced into administration (possibly out of business totally). Would this force a 10 team SPL? or would we get promotion by finishing in the top 3? I am hoping for the latter. Time to get rid of all these over spending over-the-hill clubs. Football is now a game which is played both on and off the park

Or if Falkirk or St Midden were declared bankrupt before the start of the season, would we be invited straight back into the SPL again?

St Mirren have no debt - they made a big profit on the deal to move into their new ground, which paid off all the outstanding money they owed. I don't think Falkirk owe money to anyone either.

I'd imagine that Kilmarnock could be in danger - they are over ?5,000,000 in debt. Hearts 'business' model would suggest that they need regular injections of cash.

[Kylef]

How likely is it though?

Basically all i think will happen is the teams will have to renegotiate their contracts, and players, and would have to go back to the drawing board about what players they want/need to bring in.

[WYNESS101]

If teams did go bust i think whoever finished 2nd in the 1st division would go up with the saints from perth and i think we would be aloud to stay up aswel

[absent friend]

Setanta's financial input into the SPL is 66% of the total turn-over and almost exactly equals tha yearly wage bill of the players.

I would submit that this is going to have an enormous impact on clubs/player pool/contracts as of this moment.

Perhaps a knight in shining armour will ride in but if you were the financial director of any club you will now be wondering just how legal that contract with the wet ink is!

Rough times ahead, I think.

[Alex MacLeod]

The question is could we afford to go up. The Setanta problem may, or may not, result in some teams going to the wall. Teams will have already set their budgets based on tv money. Without the money they may not be able to perform. The SFL is also going to suffer.

I dont think we need worry about whether or not we would get back in. I believe if nobody takes over the Setanta committments and no other tv deal can be found then the SPL as we know it will not be in existance. Without tv all other sources of revenue will diminish. No tv means no advertising exposure.

[WYNESS101]

Heard the other day that ESPN were trying for the SPL games?? Any truth

BBC might go for it?

Cant see Sky Sports

[Hiro]

I wonder if we've had a lucky escape in some wierd way.

[Johnboy]

Bet TB's glad he packed in his situation with them, and got a nice secure wee job here in Inverness.

[RiG]

According to todays Sun, "ICT, along with St. Mirren and Motherwell are three SPL clubs who depend on Setanta cash for 25% of their income."

Interesting...

[Harry Chibber]

Interesting...

Worrying....

[Kingsmills]

Interesting...

Worrying....

Not really considering we will be depending on Setanta for none of our income for at least the next year.

[WYNESS101]

According to todays Sun, "ICT, along with St. Mirren and Motherwell are three SPL clubs who depend on Setanta cash for 25% of their income."

Interesting...

Surely Falkirk and Killie will be needing money from them aswel

[tokelyisvictorious]

i thought we were getting only ?50,000 from them? Or was that purely a parachute payment?

at least we have had the benefit of preparing for this, falkirk and st mirren and killie hav had cutbacks thrust on them.

[Harry Chibber]

I think they might be talking about Killie as the club, which could potentially go bust.. I'm sure we'll be fine but I don't think it will have helped us, especially after being relegated

[Johnboy]

I was paying Setanta by bank direct debit which I cancelled on the Monday after the Falkirk game.

I'm now getting letters from them saying I am in breach of contract and threatening me with debt collectors and possible court action.

Anyone else getting hassle from them?

[WYNESS101]

http://news.bbc.co.uk/1/hi/business/8092595.stm

"BSkyB refused a ?50m lifeline to Irish pay-TV broadcaster Setanta - which is facing administration - it has emerged"

[Kingsmills]

Falkirk reached the CIS Cup semi final last season together with the final of the Scottish Cup. That would have given them something in the order of ?800,000 above their budget as a result of which they are unlikely to br in quite such a precarious financial position as they were rumoured to be in mid way through the season.

[absent friend]

According to todays Sun, "ICT, along with St. Mirren and Motherwell are three SPL clubs who depend on Setanta cash for 25% of their income."

Interesting...

Rig, this is a lower figure than all the reports I have seen maintain. The figures I saw showed the income from Setanta as being 66% of our income and equal to our wage bill. There is also the 'little' problem with advertising - no TV - no adverts - no income, which will also compound the problem.

I would like to think that we are immune from it all this year but that is not possible, any loss of revenue must be felt throughout the Scottish game and we must all be worse off.

The SPL however could be in big trouble with reconstruction a possibility, if no new company takes over the agreements from Setanta and clubs go to the wall.

[Yngwie]

I was paying Setanta by bank direct debit which I cancelled on the Monday after the Falkirk game.

I'm now getting letters from them saying I am in breach of contract and threatening me with debt collectors and possible court action.

Anyone else getting hassle from them?

There is a cancellation notice period which you presumably didn't give, so strictly speaking they are fully entitled to claim from you. No doubt an awful lot of people will be doing the same as you though.

For a small outstanding balance like yours, they normally don't go any further than the threatening letters.

There is a chance that if they end up in receivership, the receiver could pursue debts more vigorously, because that is his job, and nobody cares at that stage if it is bad PR for Setanta.

If it were me I'd sit tight for a while and see what happens.

[CaleyD]

Not sure what our total income would have been from Setanta over a season, but with a turnover somewhere in the region of ?2.5 Million then if we can come up with a figure then it's a fairly straight forward calculation.

[gordyfromsneck]

Interesting...

Worrying....

Not really considering we will be depending on Setanta for none of our income for at least the next year.

I would think that this is the best way of looking at it. We were doing our sums without the help of Setanta, now other clubs are as well. Except they are in a league above us. Selfishly, the "lucky escape" story is the right one here.

[Yngwie]

Not sure what our total income would have been from Setanta over a season, but with a turnover somewhere in the region of ?2.5 Million then if we can come up with a figure then it's a fairly straight forward calculation.

Would be useful to know what our turnover was back in Division 1 days, because that's pretty much what its going to drop to.

[Kingsmills]

Not sure what our total income would have been from Setanta over a season, but with a turnover somewhere in the region of ?2.5 Million then if we can come up with a figure then it's a fairly straight forward calculation.

Would be useful to know what our turnover was back in Division 1 days, because that's pretty much what its going to drop to.

Around about 1.6 million as far as I recall.

[CaleyD]

I think Kingsmills cheated.....the turnover for our last season in SFL1 was ?1.7 Million.

I might have got our current turnover a little off as well, so the 25% figure might not be so far off the mark.

[DornochJAGGIE]

I wonder who will be next broadcaster to screen the spl, if setanta goes into admin.