Uncertainty over Scottish football coverage as sponsor and broadcaster Viaplay confirm UK exit
- Planet Sport writer
- 20 July 2023
Viaplay sponsors the Scottish League Cup and also holds broadcasting rights for some Scottish Cup matches.
Viaplay has indicated that it will be scaling back its involvement with Scottish football after announcing plans for "a new strategy" aimed at cutting costs amid financial difficulties.
The Nordic broadcaster currently sponsors the League Cup, has the rights to screen and stream all matches involving the Scotland men's national team, and also has a deal to show some Scottish Cup matches until next year.
Viaplay announced on Thursday that it will be laying off 25% of its staff and will focus resources on markets where it feels it "can compete for the long term" as it takes "a number of immediate decisions for the sake of the future of our business".
It is understood that all payments from Viaplay to the Scottish Professional Football League are up to date, and the SPFL anticipates that matches will continue to be broadcast as scheduled this season.
In a statement released on the broadcaster's website, Viaplay president and chief executive Jorgen Madsen Lindemann said: "We are today announcing a new strategy and plan, which includes, but is not limited to, focusing on our core Nordic, Netherlands and Viaplay Select operations; implementing a new operational model; downsizing, partnering or exiting our other international markets; rightsizing and pricing our product offering in the Nordics; undertaking a major cost reduction programme; and conducting an immediate strategic review of the entire business to consider all options including content sublicensing, asset disposals, equity injections or the sale of the whole Group.
"The content investments that have been made are not all paying off, and are committed in the short and medium term. Furthermore, the pursuit of subscriber volume growth has been at the cost of value, especially when it comes to our partner agreements.
"The weakness in the advertising markets and currency exchange rates are additional factors that we must live with.
"The international expansion assumptions, including the timelines to profitability, have also been pushed materially into the future since the expansion started. We are moving quickly to address all of these challenges.
"Going forward, our focus will be on the Nordic markets with the new operating model in place, on the right content mix, on the development of our soon to be profitable Dutch operations, and on the sale of our content internationally through Viaplay Select.
"We are focusing our attention and resources on those markets where we can compete for the long term, and ensuring that our products are relevant, popular and generate healthy returns."
Viaplay acquired previous League Cup sponsor and broadcaster Premier Sports last year and took over the rights to show the competition until 2027, while the deal for Scotland matches - brokered through UEFA - runs until 2028.
