Breaking up is hard to do

Although the discussions have so far been relatively amicable, Natasha Woods reveals that, behind the scenes, the top 10 clubs in the Scottish Football League could be heading for a messy divorce from the rest

DIVORCE can be a messy and expensive business, particularly when lawyers get involved. And that is what is just about to happen in the case of Scotland’s First Division clubs and their desire to leave the Scottish Football League following entreaties from the Scottish Premier League.

The Sunday Herald understands that Peter Donald, the secretary of the SFL, has been asked to obtain up-to-date legal advice on the settlement agreement that was signed when the SPL was established in 1998 after a series of meetings between all the parties last week.

Donald is due to report back at the next SFL management committee meeting on September 21st.

At the crux of the matter are the severance payments that the SPL would have to make to the SFL. Effectively, that is the “alimony” agreed following the original split and it currently stands at around £1.6m a year.

If an SPL2 is to be in place by the start of the 2008/2009 season as planned, it will require a two-thirds majority vote by the 30 remaining SFL clubs. So convincing the Second and Third Division sides that they will not be financially worse off under the new arrangement will be key to securing their support.

The impression given by the SPL is that the basis under which they would continue supporting a smaller SFL is simple enough. “The support payment is index-linked in perpetuity, but there is a mechanism whereby if clubs move from the SFL to the SPL an adjustment is made,” said SPL secretary Iain Blair. “The last time that happened was when the SPL went from 10 to 12 clubs and an adjustment was made at that time.

“It is broadly on a pro rata basis,” he added. Hence if a third of the SFL clubs decide to throw their lot in with the SPL, the alimony should be reduced by a similar amount.

However the Sunday Herald has learned that the legal advice received by the SPL and the SFL may be at odds, so further clarification is being sought. And with the Scottish Football Association primed to act as a final arbiter if the sides cannot agree, David Taylor, the chief executive of the governing body, has already warned against the sort of in fighting that resulted in the SFA paying out more than £100,000 in legal fees last time around.

“I’m absolutely certain there will be changes, but as to what those changes will be, I don’t know,” said Jim Ballantyne, the chairman of Airdrie, and one of those who believes the First Division clubs are not being rewarded for their investment in the game.

“It is obviously an SPL matter now because they are the ones who have picked up the idea and run with it.

“There is a belief among our clubs that the way money in the SFL is split is not for the benefit of the game,” he added.

“There is such a small difference between what the team that sits bottom of the Third Division gets and what a First Division team gets when it has been investing in youth development, on players and has financially committed to the game. That investment is not currently being rewarded.

“Hopefully the SFL and SPL can thrash out something that can be put to the other SFL clubs to make it acceptable. However it also has to be acceptable to the 10 clubs who plan on leaving because there is no point leaving for the sake of leaving.

“There would have to be financial advantages for us in terms of generating substantially more income than is currently being generated.”

With the lower leagues now operating without a title sponsor, the financial imperative is clear. In such circumstances accruing massive legal bills would simply suck more money out of a pot which has already shrunk significantly.

While those at the heart of the negotiations are playing their cards close to their chests, there is plenty of subtle – and some not so subtle – lobbying going on behind the scenes.

Some of those backing plans for an SPL2 point out that administration costs at the SFL currently run into six figures, and such sums could be re-directed straight to the country’s smaller clubs if a second break-away happens since there would be little need for such levels of administrative support for the 20 clubs run largely on a part-time basis.

However there are those among the lower divisions who maintain that the debate over reconstruction of the league system does not simply come down to money.

Eric Drysdale, the chairman of Raith Rovers, admitted there may well be considerable support for the proposal among the Second and Third Division clubs if it can be proved that they will not be financially any worse off, but he had other concerns.

“Of course, money talks and the financial aspect is obviously important, but more important to me is the ability of a club to move up and down the divisions,” he explained.

“It is not just about finance, it is also about the openness of competition. Football should be about sporting merit and not just how many seats you have.

“The perfect example just now is Cowdenbeath, who are in second place in Division Two and who are a damn good football team.

“If these plans went ahead and Cowdenbeath finished top of the division they would have nowhere to go because they do not have the 3,000 seats they would need to join the SPL2,” he added.

“And there would be no point Cowdenbeath building 3,000 seats because they would just lie empty.

“While I understand part of the reason behind that requirement is to improve facilities, there are some clubs for whom that is never going to be possible and my problem with that is that it cuts across the fundamental principle of a meritocracy.”

Given the harsh relatives of life in the SFL, it may be that financial guarantees rather than footballing principles ultimately prove a more significant factor in the current debate.

And with money at the heart of matters, all sides in the debate would surely be advised to invest their time in calm negotiation rather than expensive conflict resolution.

Taken from the Sunday Herald