The clubs have issued a joint statement to clarify their position which read: "Regretfully, the Old Firm has elected not to vote for the SPL Resolutions to develop Scottish Premier League Television under the arrangements currently proposed.
"Given our initial support for the concept the Old Firm has participated fully in the feasibility working groups, SPL board and SPL general meetings in relation to SPL TV providing constructive input and seeking clarity on points of detail when appropriate.
"Fundamentally our decision not to support the current proposal is based on the incompleteness of information available, the high level of business risk attached to the project that is not adequately addressed and a lack of firm substantiation of the plan assumptions.
"In our view:-
SUBSCRIBER ASSUMPTIONS ARE OPTIMISTIC AND THERE IS NO PROVISION FOR DEALING WITH THE FINANCIAL CONSEQUENCES OF ANY SHORTFALL:
The Year 1 subscriber numbers built into the business plan and the timing profile of take-up are both over optimistic and there is no sound empirical basis to support the business plan assumption that subscriber numbers will substantially increase in Years 2 and 3.
RISKS AND LIABILITIES HAVE NOT BEEN FULLY ADDRESSED AND PROVIDED FOR:
The business plan, as it stands, does not pass the appropriate due diligence tests that we would expect for a project with this risk profile.
Insufficient clarity is available in relation to subsequent liabilities to creditors should the channel fail as a commercial enterprise. The independent advice sought by the SPL and provided by KPMG endorses the Old Firm reservations.
THE PAY TV CHANNEL COULD ABSORB OTHER INCOME SOURCES AS INITIAL FUNDING:
SPL media rights payments, successfully negotiated for payment to clubs next year from areas other than pay TV could be required to fund start-up costs, placing an inappropriate level of risk on otherwise certain income streams to the clubs.
THERE IS INSUFFICIENT SAFEGUARDING OF THE CLUBS MEDIA RIGHTS:
The very recently declared SPL proposal to grant media rights to the project is not well defined, particularly in the area of safeguarding the media rights of all the Premier League clubs including the Old Firm in the event of the channel failing.
THERE IS A LACK OF CLARITY IN THE SPL PROPOSAL FOR THE GOVERNANCE AND CONTROL OF THE CHANNEL'S OPERATION:
It is understood that there may be a recently declared intent to have a control and voting rights structure for the management of the SPL channel that is inconsistent with the majority voting rights contained in the SPL constitution.
Unfortunately the above concerns and questions still remain and any responses that have been provided have not allayed our concerns. Also our requests for alterations to the proposal and clarification of SPL rules to address the safeguarding of media rights have not been dealt with.
Therefore the directors of Celtic and Rangers are unanimous in their view that to support the proposal in its current form would be inconsistent with their responsibilities as company directors. It was an appropriate course of action to assess the feasibility of SPL TV but on the basis of the findings presented, the Old Firm do not believe it would be commercially wise to proceed at this stage given the status described above.
Finally in recent days there has been considerable speculation and misinformation in relation to the Old Firm's involvement and intent towards this project.
For the avoidance of doubt:
The Old Firm has not been party to discussion with Sky or any other media company on the subject of an Old Firm channel as a substitute for or a competitor to SPL TV.