Old Firm would strike it rich in England

THE Old Firm can become financial powerhouses if they are allowed to join the Barclays Premier League, according to the author of an annual report on Scottish football's finances.

David Glen, a partner at PricewaterhouseCoopers, believes the prospect is more likely to occur than ever before because of the nature of the latest proposal.

Bolton chairman Phil Gartside has formulated a plan for two 18-team divisions, the second of which would initially include Celtic and Rangers.

There are many obstacles to overcome, not least the approval of Uefa and governing bodies on both sides of the border, and talks on the matter have been delayed until at least the summer.

But Glen feels this particular plan is more attractive to clubs in the bottom half of the English top flight, whose status would naturally be threatened by the arrival of the Glasgow clubs.

And he argues the Old Firm would challenge the hierarchy of power in the English game if they had access to massively increased TV revenue.

Both clubs have average attendances above 50,000 – only Manchester United can accommodate more fans than Celtic in Britain – and large fan bases in parts of the world including Ireland, North America and Australia.

"Rangers and Celtic have always had a very large income stream despite not being in England or in one of the large European leagues," Glen said. "They have always teetered around the top 20 in the money league in Europe. It always seemed to me there's a fantastic income base already. If you add the TV income to that, they would become very powerful."

Gartside's plan would need backing from 14 of the 20 top-flight clubs but, with the spectre of relegation haunting most this season, the prospect of softening the financial blow of dropping a division could hold appeal.

Glen said: "I think what it's going to boil down to is how the TV money gets split between the two divisions. At the moment, the bottom club is getting £26-28 million whereas the top of the table gets £50 million, which totally dwarves what we get in Scotland.

"The current Setanta deal supplies £13 million a season across all clubs. That is due to be increased but, as we have heard in recent days, Setanta are looking to renegotiate."

Glen added: "This plan might have more chance. Any time it has been talked about, it was on the basis they would go direct into the top flight. Clubs near the relegation zone would never have voted for it, it would have been like turkeys voting for Christmas.

"The difference here with the two league set-up is that they would have to come into the bottom league."

Crystal Palace chairman Simon Jordan has argued the Old Firm should pay £100 million for such a privilege.

Glen said: "I can see what he is saying, 'You're coming to join our league and that's generating the income so why should you have that for nothing?'

"But the other side of the coin is that the Old Firm can attract more fans, particularly into a Premier League 2. Those clubs will get a shot in the arm from the travelling support."

The Scottish Football Association has refused to comment on the proposal, but it is likely to oppose any exit of the two biggest clubs. But Glen believes a financial pay-off could possibly pave their way from the Clydesdale Bank Premier League.

"There's the potential to have less excitement without the Old Firm but also the potential to become more competitive," Glen added.

And representatives from both clubs could find themselves back in the SPL before long. "We're already seeing talk of plans for a Celtic reserve team to get into the lower divisions," he said. "You might find Rangers and Celtic reserves getting promoted back to the top flight."

Jordan said: "Football is evolving all the time and this would be great for the Scottish clubs but they should pay to come down.

"I'd suggest £100 million and the immediate financial benefits that arise for both clubs would soon cover it. Their share price would go through the ceiling on the back of massive revenue increases. The SPL does not attract a worldwide audience – the Premiership does.

"It would be a great thing for Celtic and Rangers but the Old Firm would not add enormously to the levels of interest in a league that's already massively exposed."

Jordan added: "I wouldn't be surprised to see it happen but it's still a long way off as no deals can be done until the next round of talks with broadcasters, scheduled for 2013."