Background
Previously, the Scottish Football League had a two divisional structure (Divisions One and Two) between which clubs were promoted and relegated at the end of each season. However, by the mid 1970s, this organisation was perceived to be stagnant, and it was decided to split into a three divisional structure: Premier Division (formerly Division One), First Division (formerly Division Two) and a newly added Second Division. This system came into force for the 1975–76 season. This setup continued until the 1994–95 season, when a four divisional structure was introduced, along with a new Third Division, with all four divisions consisting of ten clubs.
On 8 September 1997, the football clubs in the Premier Division decided to split from the Scottish Football League and form the Scottish Premier League, following an earlier example in England, which came into force during the 1992–93 season. This decision was fuelled by a desire by the top clubs in Scotland to retain more of the revenue generated by the game. Originally, league sponsorship money was divided proportionally between clubs in all four divisions. After the SPL was formed, its clubs retained all of its commercial revenues except for an annual payment to the SFL and a parachute payment to relegated clubs.
Read more about this topic: Scottish Premier League
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