A rival faction of First Division clubs is emerging who have not given up hope of remaining in the Scottish Football League

A RIVAL faction of First Division clubs is emerging who have not given up hope of remaining in the Scottish Football League - assuming the league itself is prepared to transform its commercial basis, staffing levels and constitution.

SFL clubs met at Hampden in a number of different sittings last Thursday - one also attended by SPL chairman Lex Gold and secretary Iain Blair - to consider a scathing report by lawyers Pannell Kerr Foster into the league's administration.

The report concluded that the structure of the SFL was out of date and significantly more expensive to run than the Nationwide Conference south of the border, which effectively presides over more than twice as many teams.

Some of the more hardline First Division clubs have utilised the report's findings to restate their determination to join some form of SPL2 set-up as early as next season.

However, the Sunday Herald understands that a significant number remain willing to enter a debate on how to reinvigorate and revolutionise from within the SFL.

These clubs are thought to be concerned by the lack of financial assistance guaranteed by the SPL and are significantly more sceptical about the timescales involved, and the prospects of the rebels raising the 20 member clubs who could vote to release them from their SPL membership.

Additionally, the clubs remain doubtful the 16 member clubs required to call an extraordinary general meeting at the SFL this summer, will be found.

So far, with a total of 13 clubs having been involved in discussions, no such proposal has been received.

"There are some clubs that are interested in seeing what can be done from a completely reconstituted SFL run properly on a commercial basis and differently staffed - there are clubs that are willing to have a look at that," a source close to this week's meetings said.

"That has not been ruled out by a number of clubs, despite what people are saying. There is mileage in it and I think it is too important not to look at it."

The one thing that all the clubs are agreed upon, if not the administrators themselves, is the fact that the PKF report has finally shed some impartial and specialist light on the subject, away from all the vested interests that so often pollute the debate.

With the SFA currently arbitrating over differing legal opinions as to the likely implications of the £1.6m sum which the SPL pays the SFL each year according to the initial settlement agreement, the question is whether the PKF report has persuaded enough clubs in the Second and Third Divisions about the scale of the change required.

It remains to be seen whether any changes endorsed by the smaller clubs would be sufficient for the bigger fish in the pond.

"SPL2 has still got a lot of meat to be thrashed out," a source close to the talks said. "The SPL want to have their cake and eat it, they want SPL2 to give them a trampoline but not give them a single penny, and it tells me lots about their agenda.

"All they have done is said: how do you fancy using the SPL name to get some extra sponsors and a TV deal?' I'm not sure we have moved forward too much from this time last week.