The Scottish Premier League has agreed to grant a reduction in its broadcast contract from struggling broadcaster Setanta.

All 12 SPL clubs have agreed to renegotiate the deal with Setanta, which was originally to be worth US$188 million over the next four years. That deal, worth almost double the current agreement, raised eyebrows at the time and is certain to fall significantly given Setanta's current woes, most strongly underlined by the loss of one of its English Premier League packages to rival BSkyB.

While no terms have been released - or likely even agreed upon as of yet - it is widely predicted that the deal could see the four-year deal reduced in value to as little as US$150 million, with a possibility that the SPL may have to settle for as little as US$25 million per season in a worst-case scenario. That would still be more significant than the current contract, but will do nothing to stop Glasgow giants Celtic and Rangers, the commercial and sporting powerhouses of the league, from continuing to cast eyes at the possibility of abandoning the competition in favour of the lucrative English Premier League.

Another alternative would be for the two clubs to market their rights separately. 'Rangers and Celtic have made it plain privately that they wish to sell their own television rights directly; they could regard the collapse of the latest television deal as the ideal opportunity to seek that again,' reported The Guardian newspaper.

The bad news comes just days after the SPL was guaranteed overseas broadcast payments of US$15 million by Sportfive.