THE Challenge Cup has been axed because of financial cutbacks in Scottish football. And that means the trophy which has been played for by clubs in the first, second and third divisions is the first major tournament victim of the lack of sponsorship in the game.

A further sign of the worrying financial situation in Scottish football was that the first round draw for the League Cup - which has been sponsored by Coca Cola - was not held on Thursday at the annual meeting as in previous years.

That will now be held at a later date, possibly after a television deal has been struck. Only recently the ten clubs in the premier league decided against accepting a #5.4m four year deal from Sky, although the clubs in the lower divisions were in favour.

Hamilton have won the Challenge Cup twice and their secretary Scott Struthers said: ''It has been a marvellous competition, and we will be sorry that it cannot be continued. But in the present financial climate the league must decide, with no sponsors, whether it is better to use their money in other directions.''

Stranraer manager Campbell Money said: ''It was a huge boost to our club when we lifted the trophy.

''It will be a financial blow to the small clubs if they don't have the chance to compete and reach the final stages.''

q Two-goal Derek Young of Aberdeen earned the points for the Scots in their second game in the Four Nations youth tournament in Portugal. And that was a huge boost following the opening game goalless draw with Portugal.

Young opened the scoring from the penalty spot in 74 minutes only for Spain to equalise five minutes later. But in the final minute Young crashed in a 30 yard drive for the winner.

Coach Ross Mathie said: ''We played very controlled football and fully deserved the win. To be unbeaten after facing two of the strongest European youth nations shows how well the side is doing.''

Scotland now face Russia tomorrow to decide the tournament winner.