How important is Rangers FC to Scottish media? – media buyer’s views
Glasgow football club Rangers FC is set for liquidation following HMRC’s decision not to accept a company voluntary agreement (CVA) of around 9p to the pound to take the club out of administration. This looks set to be the final nail in the coffin for the Ibrox-based club. But with newspapers publishing news daily in order to sell titles, and so many other companies working with and around the club, what impact will it have on the Scottish media scene? Two media buyers from Carat offer their views.
Stuart Bell, director of Carat and Rangers fan, first begins by highlighting that the club has not yet closed, but adds that should that occur, that the impact on Scottish media ‘would undoubtedly be significant.’
Bell continues: "Media owners publish / broadcast stories that are of interest to their readers / viewers / listeners in an attempt to increase their audiences. The volume of words that were written/ spoken on Rangers prior to this debacle were always extremely high. Since Rangers went into administration the level of coverage has been huge which suggests media owners believe it helps boost their audiences. As such to lose this opportunity must surely have a negative impact on their audience/circulation figures. This in turn has a negative effect for their advertisers and the opportunity to generate advertising revenue is reduced.
“Would Sky Sports renew their broadcast deal with the SPL? Possibly. Would they pay the SPL the same figure for the rights - not a chance.”
Meanwhile, non-Rangers fan Kenneth McFarlane, account executive for Carat offered his own view of the impact that the closure will have.
The demise of Glasgow Rangers as the club we have known for over a century has effects that will spread far and wide through the whole of Scotland. The media has been able to count on a guaranteed news story since Valentines Day - but what hasn't been analysed as much is how the dramas at Ibrox will affect Scottish media itself. The reason for this is that we are still dealing in hypotheticals. We don't know at what level Rangers will be playing, or what will happen to the SPL if they are thrown out. We can hypothesise that interest in Scottish football will wane, and that may affect media coverage of it. Sports content will still be consumed in this country and should not suffer greatly from reduced revenue from advertisers targeting male audiences, with significant losses limited to radio & press, media with more resting on specific strands of sports coverage for sponsorship and advertising revenue.
It's worth noting that the decision to create a "new-co" ensures that the intrigue will continue for months ahead, so the affects will not be felt immediately, giving media owners time enough to prepare for any eventuality.
Sky Sports' decision to renew their contract with the SPL will rest heavily on what happens to Rangers and where they will be playing. But an SPL without them is not as enticing a proposition for a broadcaster.
A likely scenario is that they would strike a deal to show the games at a much-reduced cost, with potential viewing figures slashed. Though any deal for covering the lower leagues would suddenly be worth much more."
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Carat Edinburgh
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