The Scottish FA is subsidising the Scottish Cup in lieu of a sponsor, its chief executive Gordon Smith has said.
The competition is still without backing after Tennent's ended its 18-year sponsorship in 2007.
"Last year we didn't have a sponsor and we paid out well over £1m to clubs for their participation," Smith told a BBC Scotland documentary.
"That money comes out of proceeds at the SFA and it's money that could be spent on other things."
However, Smith, who was appointed chief executive in June last year, is hopeful that a new sponsor will soon be found.
"We're quite confident we're going to get a sponsor and it's just a case of working on it," the former Rangers and Brighton player said.
"It's a hard economic climate. It's not easy to get somebody to suddenly come up with the money.
I'm accountable for the fact we don't have a sponsor but I'm not responsible
SFA chief executive Gordon Smith
"We've been working on it for quite some time but I think we're addressing it much more closely now in order to make sure that we get one in place because it's a big factor."
The draw for the first-round of this season's competition will take place on Monday 8 September, ahead of the matches due to be played 19 days later.
"I'm accountable for the fact we don't have a sponsor but I'm not responsible," said Smith.
"There is a commercial department who are in the process of trying to do that. I've been speaking to a great number of people. I've been helping along with the process.
"I'm still confident that we'll get one."
Smith was BBC Scotland's main football pundit and also owned a players' agency, but he relinquished both roles when he joined the SFA.
Gordon Smith: From Player To Power will be broadcast on Friday 5 September on BBC One Scotland at 2235 BST.
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