E Mail From Stewart Regan Of The SFA

Many thanks for your contribution and support over the last two weeks in trying to deliver a programme of change that will move Scottish football forward whilst addressing the need to deal with the Rangers matter with integrity and in line with our own values as an organisation. I was hugely encouraged with where we got to last night on a long and tiring phone call and I thank all of you for your efforts to move this issue forward. I thought it would be helpful if I summarised where I think we are: 1. The Rangers Football Club will be relegated to the 1st Division of the SFL with immediate effect and will be replaced in the SPL by Dundee FC. 2. The television rights for Rangers FC matches in the SFL will be purchased by the SPL for the sum of £1m as a one-off fee for the season 2012/2013. 3. The two leagues will merge into a single league body – The Scottish Professional Football League – effective season 2013/14 – with a working party set up immediately involving representatives from the SPL, SFL and (if required) the Scottish FA to plan the integration of the two bodies – people, rules, rebranding, commercial considerations and so on. 4. A new Board of Directors will be appointed to govern the single league. The make up of this Board will consist of an Independent Chairman, CEO, 3 representatives from the Premier League, 2 representatives from the Championship/Leagues 1 & 2 and 2 Independent Non-Executive Directors. 5. Play-offs will be introduced immediately with the first matches taking place at the end of the coming season 2012/2013. 6. Enhanced parachute payments will be implemented from the end of the season 2012/2013 to soften the landing for club(s) relegated from the Premier League. 7. A revised all-through distribution model will be put in place to provide: a) An all-through distribution model for clubs 1-22 and a minimum guarantee for 20 clubs in Leagues 1 & 2, equivalent to what they would earn under the current settlement agreement. 8. A Pyramid System will be put in place which open up the bottom of League 2 effective from the end of season 2013/2014 with the first opportunity for promoted clubs to enter the league being 2014/15 thus allowing for licensing to take place. 9. Consolidation below the Third Division to take place to create a Lowland & Highland League structure effective 2014/15 with appropriate play-offs and promotion/relegation to be put in place. Clubs to be briefed that the previous season 2013/2014 will involve the opportunity to enter play-offs for the first time. In terms of actions/timings I think the following needs to happen in this coming week: A) A joint statement today from all 3 bodies confirming that productive discussions have taken place on a new blueprint for Scottish football. Consultation will continue over the next two weeks with a view to clubs getting together week commencing 2nd July to try and agree the way forward. (D Broadfoot to provide this and circulate to DL/ND for approval) B) Rod P / Jim B to finalise the all-through financial model by Wednesday this week latest. C) Neil / David to finalise the detail on Governance, Commercials and Play-Offs (ideally Monday/Tuesday) and incorporate these, plus the financials in B) above into a legally binding Heads of Terms ‘draft’ for presentation to each league body w/c 2nd July. D) DL to organise SFL Board Meeting w/c 25th June to gain buy-in to the plan and also arrange an all club meeting w/c 2nd July E) ND to gain support from SPL Clubs 28th June F) SFL Clubs Meeting to be planned for 3rd July G) SPL Club Meeting to be planned for 4th July H) Scottish FA Board to sign off on the final plan post 4th July. Subject to approval all bodies (including Newco) to sign legal documentation. I) Agree joint communication strategy J) In parallel to A-D above, could Rod Petrie please brief Charles Green confidentially on the discussions from a Scottish FA perspective so that there are ‘no surprises’ and there is a general acceptance of the plan plus all of the other conditions discussed e.g. transfer embargo, fines, repayment of football debt, waiving rights to legal challenge, acceptance of relegation and so on. K) Andrew to ensure our check list of disclosures relating to Newco and Fit & Proper Person criteria are delivered by 2nd july. The Board will need these plus the Heads of Terms above in order to complete this plan. The Scottish FA Board have agreed to provide a one-off restructuring budget of £1m on condition the above plan is delivered. I hope this covers everything. Speak soon….now off to the airport! Regards Stewart