Rangers key to SPL's new television deal

Television companies believe Rangers are crucial to SPL coverage
Television companies believe Rangers are crucial to SPL coverage

The Scottish Premier League's new live television contract will be under threat should Rangers drop out of the top flight following administration.

Its TV deal includes a clause stipulating the participation of both Celtic and Rangers in the SPL.

Rangers' administrator must now agree a Company Voluntary Agreement with the Glasgow club's creditors.

Should it fail to do so, any new company taking the Rangers name would have to apply for re-admittance.

And that would be subject to a vote from the remaining 11 clubs.

At least four of those clubs are believed to be owed money by Rangers - Hearts for the £1.5m summer purchase of Scotland full-back Lee Wallace and Dundee United, Dunfermline Athletic and Inverness Caledonian Thistle for ticket sale proceeds.

Clark and Whitehouse have been appointed Rangers' administrators
Clark and Whitehouse have been appointed Rangers' administrators

The SPL announced a new five-year contract worth £80m in November and it is due to come into effect at the beginning of next season.

Rangers entered administration following a legal battle with HMRC over tax arrears, with new owner Craig Whyte estimating that a court action could lead to a demand for £75m.

Joint administrators Paul Clark and David Whitehouse, from Duff and Phelps, have since confirmed that HMRC's action stemmed from the alleged non-payment of £9m in VAT and PAYE dating back to last year, when Whyte bought the club from Sir David Murray.

Following Rangers' appointment of Duff and Phelps, the Glasgow club were immediately docked 10 points by the SPL, which also imposed an embargo on player signings.

SPL chief executive Neil Doncaster is hoping to meet representatives from the administrator in the next couple of days.

His Scottish Football Association counterpart, Stewart Regan, on Wednesday met the men given responsibility of handling Rangers' financial affairs.

Meanwhile, the brewer, Tennent's, has already said that it will continue its deal with Rangers despite the club being in administration.

Dundee were the last Scottish club to face a similar plight to Rangers, the First Division club spending seven months in administration until May.

Livingston were demoted by the Scottish Football League from Division One to the Third Division in 2009 after going into administration.

Gretna were the last senior Scottish club to go out of business, suffering relegation from the SPL in 2008 while in administration, being demoted to Division Three but being unable to come out of administration in time to continue in the league.

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