The Scottish Football League have defied the chill economic wind with the announcement of a two-year extension to their agreement with Co-operative Insurance for sponsorship of the league cup.

The firm have sponsored the competition since 1999, though it was known as the CIS Insurance Cup until this term. The new deal will extend their commitment until 2011 with an option for renewal thereafter, and represents a significant endorsement of the strength of the tournament.

David Longmuir, the SFL chief executive, was delighted to conclude the deal. "They are a great company to work with," he said. "It's not just about the cash value, it is what it delivers. It helps deliver a TV contract as well and brings a lot of revenue into the game. Everyone benefits, from the third division up to the SPL. It is one of the top value sponsorships in Scottish sport, not just in football.

"It would have been very easy for Co-operative Insurance to walk away in the current climate, but they realise the value they are getting. We have worked hard to give them as much value as we can."

The straight knock-out format of the competition will remain unchanged for now, though Longmuir admitted that they have considered tinkering with some aspects in the future.

"We are going to look at some innovations next year," he said. "We will try to make it more family friendly. We might even start the season off with the first round of the Co-operative Insurance Cup on a Saturday and make it a family weekend, rather than have so many midweeks.

"We were also talking about the old sectional ties there were in the League Cup back in the 1960s and 1970s. It was like a mini Champions League, with the bigger clubs seeded. We will do whatever we can to help promote this tournament in the early stages."

The current economic climate has placed the existence of several SFL clubs in jeopardy and the governing body have already given each club an interim payment from commercial revenues this season to help keep them afloat.

"We've still got 30 clubs at the moment and I'd like to keep it that way," added Longmuir. "As long as the clubs operate within their means, with sustainable business models, we will do everything we can to deliver as much revenue as possible into their pockets. We have quarterly meetings with the clubs and part of that is about marketing. I think all the clubs do a grand job in their communities. There is a limit to how much they can stretch their appeal, but they have to maximise what they can."

Last season's Co-operative Insurance cup final was the perfect showcase, with Rangers eventually overcoming Dundee United on penalties after a thrilling 2-2 draw at the end of 120 minutes. It was also a significant staging post in the Craig Levein revolution at Tannadice. This season, United have drawn with the Old Firm on four occasions and face Celtic in the semi-final of the competition later this month.

"Last year's final showed that we can live with Rangers and Celtic on the big stage," insisted David Robertson, the United midfielder. "We're not going to bottle it and can stand up and be counted. Hopefully we can produce another good performance in the semi-final. We feel that we should have won last year's cup final. If we get the chance again, the boys will be as determined as ever, and maybe even more so."

There is a growing belief in the Tannadice ranks that they can continue to close the gap on the Old Firm, reflected in Robertson's stated desire to "turn those draws into wins". To inch ever closer, they must retain their manager and key players. Lee Wilkie and Willo Flood are both out of contract in the summer and have been linked with moves, although the former seems set to agree a new deal. Robertson believes Levein is the key to the club continuing to move forward.

"I think the manager himself has been approached by other clubs but he has stayed because he believes that with the players he has got, they will continue to improve and be even better than they are now. I'm sure there will be no shortage of offers for Willo and Lee but I'm sure the manager could talk anyone around if he gets them in a one-on-one.

"The manager is the biggest part of the team. He had a fantastic relationship with the chairman Eddie Thompson, who died last year and I'm sure that will carry on with the new chairman Stephen Thompson, Eddie's son. The fans love him and I think he is part of Dundee United now."