The fate of pay-per-view sports TV group Setanta will be decided this week when football authorities in England and Scotland will decide whether or not to continue to support it.

 

Setanta has spent more than £400 million on buying the rights to screen top-flight matches in England and Scotland from their respective authorities.

 

However, the cash-strapped broadcaster is trying to reduce the payments it owes to the clubs. The club authorities will decide this week.

 

Yesterday, Setanta’s board met to look for ways to recapitalise as the firm battles for survival.

 

The main options it considered were the broadcaster’s existing investors putting in more money, finding new backers, or selling the firm to ESPN, the Disney-owned US sports network.

 

Administrator Deloitte is monitoring the situation closely in case the recapitalisation efforts fail.

 

Setanta’s future has been in doubt since it lost one of its packages of Premier League football rights to rival Sky, which knocked the confidence of its investors.

 

If Setanta were to collapse it would have dire implications for several Scottish clubs, which rely heavily on TV money.

 

English clubs would also take a hit but they would be better placed to weather the loss due to their Sky contracts.

 

Setanta is owned by private equity groups Balderton Capital, Doughty Hanson and investment bank Goldman Sachs.

 

 

Source: Sunday Express

 

Setanta have missed 2 deadlines to pay their next instalment to the Scottish Premier League, do you think they paid far too much for the rights for matches in England & Scotland?

It seems in a way to be more a case of not paying enough. The suggestion is that they missed out on the second set of Premier League games by a relatively small amount. If they'd kept that second package, they wouldn't be in so much danger of losing large numbers of subscribers.

Bye bye Setanta :dance:

 

Can only be a good thing if that little rugmunch Craig Burley is out of a job.

Bye bye Setanta :dance:

 

Can only be a good thing if that little rugmunch Craig Burley is out of a job.

It can only be a bad thing if Murdoch manages to destroy another competitor. He simply will not tolerate fair competition.

BSkyB refused a £50m lifeline to Irish pay-TV broadcaster Setanta - which is facing administration - it has emerged.

 

Setanta had offered access to its live rights for 46 English Premier League games next season as an add-on option to Sky Sports, in return for the cash.

 

On Tuesday night, Setanta held an emergency board meeting to discuss efforts to stave off administration.

 

There are conflicting reports from sources close to the company over the firm's future should it collapse.

 

Missed out

 

Setanta's founders Leonard Ryan and Michael O'Rourke are in talks with backers to secure financing for tabling a takeover bid, according to some reports.

 

Meanwhile US sports broadcaster ESPN is also said to be interested in either buying the Irish firm for a nominal sum or simply bidding for its rights to the Premier League.

 

ESPN, which has been expanding in Europe, has remained quiet over its investment strategy.

 

But it missed out on acquiring the rights to English football's top league, when they were auctioned earlier this year.

 

Wholesale changes

 

BSkyB's chief executive, Jeremy Darroch, said that his firm had been "talking to Setanta, and trying to work with them and help them", but that it could not agree to the Irish company's proposal.

 

"At the end of the day, we are not a bank, we are a broadcaster, not a supplier of working capital to a business and rights holder.

 

"Our job is not to fund other companies. This is a huge amount of money."

 

Under the current UK broadcast deal, which lasts for one more season, BSkyB holds four packages of rights to show live Premier League matches next season - a total of 92 games.

 

Setanta has the other two packages, which cover 46 games.

 

Under European Union competition rules, BSkyB could not hold all of the rights packages.

 

However, Setanta could act as a wholesaler - retaining the rights, but then selling on the football coverage, which rivals would show through their channels.

 

Some analysts say that this business model is the only way that Setanta can survive, rather than selling its coverage directly to customers.

 

It already does this for Virgin Media, which makes Setanta channels available as part of its more expensive packages.

 

Setanta would probably receive less revenue this way than by selling directly but it would potentially be able to reach a wider market, thanks to the marketing power of the likes of BSkyB.

 

This business model would also allow Setanta save money, as it would not need marketing or customer services teams.

 

Subscriber shortfall

 

Setanta, which shows cricket, golf and rugby union as well as football, has about 1.2 million subscribers, but this is only about 60% of the number it needs, according to analysts.

 

Consequently, the company is losing up to £100m a year.

 

Deloitte is set to step in to run the firm if it goes into administration.

 

Setanta appears to have closed its online and telephone subscription sales services.

 

But it has played down reports that it is set to call in the administrators.

 

The company needs to pay £30m that is due to the English Premier League and has already failed to pay the Scottish Premier League £3m it owes in television rights money.

 

Analysts widely expect that anybody picking up Setanta's sporting television rights would pay less than the current rates .

 

And Labour peer Lord Foulkes, the former chairman of Edinburgh side Hearts told the BBC that some Scottish top-flight football clubs could be forced out of business if they faced a loss in television revenue.

 

"They are already struggling financially and this on top of it could be the tipping point.

 

"In some clubs it represents up to 20% of their income and the loss of it would be really catastrophic."

 

from: bbcSport

 

It's really not looking good for Setanta anymore....

Good, they had annoying commentators and their Sultana adverts were the most annoying since that black dude advertising the Halifax

I don't like them, but it's gonna cause some damage to the Conference and the North & South divisions. Won't be like ITV Digital as the clubs aren't getting payed anywhere near as much, but it certainly means 70k less for Conference clubs which is 3 players wages for the year...

Good, they had annoying commentators and their Sultana adverts were the most annoying since that black dude advertising the Halifax

That's what the mute button is for.

 

The fact is Murdoch does not like fair competition and doesn't give a stuff who gets shafted in his quest for ever more money. If a few Conference clubs go under he won't lose a moment's sleep. He cares about three things - Murdoch, Murdoch and Murdoch.

The Premier League has stripped Setanta of its two Premiership packages (2x23 games) for next season after it failed to pay the outstanding £30 million bill.

 

Surely there’s no way back for them now…

but who will get those packages?

 

Sky no doubt will get one, but they not allowed both. I have a feeling it will be ESPN. I doubt the BBC with their cost cutting at the moment, and ITV are basically skint :lol: