Setanta Edges Closer to Administration

[The RealDeal]

English Premier League voids contract with Setanta


Ailing broadcaster loses rights to show 46 top-flight matches as prime investor backs away from buying large stake in company.



Setanta has received a double dose of bad news, as the English Premier League terminated its contract with the cash-strapped broadcaster while it learned that a financial backer has stepped away from the negotiating table.

The developments put the troubled company on the brink of collapse and raises concerns for the Scottish Premier League, which relies heavily on multi-million pound rights fees from the broadcaster.

Setanta said is remains on air as it weighs its options.

The Irish broadcaster had until Friday to pay ?0million to the league as part of its deal to show 46 English matches each season. It is understood the broadcaster made a ?0million payment last week to the league and would have owed another ?0million in July.

The league had given Setanta this latest deadline to meet demands relating to the final season of its ?92million three-year deal.

Setanta will lose its licence with immediate effect after it was unable to meet "certain contractual requirements", the English league said in a statement.

The matches, which are for the upcoming 2009-2010 season, will now be put on the market. Sky Sports and American broadcaster ESPN are likely to make an offer before bidding closes on Monday.

Setanta issued a statement late on Friday. It said:

"The Board of Setanta notes the statement issued earlier today by the Premier League and will consider its options over the weekend. In the meantime, Setanta's sports channels continue on air."

The broadcaster is attempting to stave off administration by raising funds to help pay TV rights bills, which include the FA Cup, professional golf and rugby, as well as the SPL.

Shortly after the league's announcement came word that a Russian-American investor had backed out of negotiations to support the business. Investment group Access Industries, which was founded by multi-millionaire Len Blavatnik, said it was unable to reach agreement with Setanta and will not be investing in the ailing company.

Setanta offered no comment on this development.

Setanta boasts around 1.2million subscribers, about 700,000 shy of what analysts believe would allow the business ot break even. It recently resumed offering new subscriptions, after a brief suspension, prompting fears over the future of the business.

The firm earlier missed a ?million payment due to the SPL under the current deal, forcing the league to pay clubs from its own pocket.

Deloitte has been lined up as administrator if the broadcaster pulls the plug.


Last updated: 19 June 2009, 22:35

[The RealDeal]

ESPN buys rights to Setanta games


ESPN has bought the rights to show 46 games in next season's English Premier League that were to have been shown by struggling broadcaster Setanta.



Disney-owned ESPN has won the two packages of games shown on Saturday teatimes and Monday evenings. Both will be sold to customers through BSkyB.

It has also won the 23 games per season Setanta was due to show from 2010-13.

The league took the broadcasting rights back from Setanta on Friday after it missed a payment deadline.

Meanwhile, the Scottish Premier League (SPL) has taken back its UK rights for 2009/10 "and beyond" from Setanta after the Irish broadcaster missed a ?m payment.

The SPL said it was now "actively engaging in the process of selling our domestic broadcasting rights".

'British commitment'

ESPN said in a statement it had "reached an agreement for its coverage to be retailed by Sky to residential and commercial customers", who will pay extra to view the games. ESPN also hopes to make coverage available on other platforms.

It is the first time that ESPN will broadcast live Premier League football in the UK.


WHAT IT MEANS TO YOU
ESPN's matches will be available on BSkyB
You will pay an extra amount for the ESPN matches
Games likely to be on a new branded ESPN channel - separate from the existing ESPN Classic and ESPN America
ESPN want it on other platforms other than BSkyB, though BT Vision and ****** Media are yet to comment

The broadcaster already has two channels in the UK, one covering American sports and another showing archived action.

"This move demonstrates our commitment to British sports fans and our ongoing commitment to delivering football to fans around the world across a variety of media," said Russell Wolff, managing director of ESPN International.

Premier League chief executive Richard Scudamore said that ESPN had a "formidable worldwide reputation and experience in sports".

I am sure we will enjoy a long and fruitful relationship with them," he added.

"I would like to thank ESPN, as well as all the other broadcasters who submitted bids, for their professionalism and effort in engaging in our sales process at such short notice."

Other rights

BSkyB had been expected to buy the package of Monday night games, which it has already won from 2010/11 onwards. It will show 92 games next season and then 115 in each of the following three years.

Attention could now turn to the other broadcasting rights that Setanta owns.

It has contracts with the FA for England and FA Cup matches, and with the Blue Square Premier, the top division of English non-league football.

It also owns rights to the PGA golf tour, as well as cricket and rugby union deals.

It is running at an estimated loss of ?00m a year, after missing subscriber targets.

The broadcaster has 1.2 million subscribers, 700,000 short of the 1.9 million that industry experts believe they need to break even.

Deloitte has been lined up as administrator should, as is widely expected, Setanta fail.

[Sroey]

Its shocking for the sport in the UK where the only decent TV coverage is going to go under (Setanta). ITV4 shows were really good with Mick Hennessy (sp?) and then you had Setanta boxing which was great too but I cant see them lasting much longer. You can tell how much interest the BBC has in boxing just by looking at the BBC Sport website and the shockingly bad boxing section. Rarely updated and poor.

That sums up the BBC and boxing. Frank Warren has hit the nail on the head with Sky (and the other TV stuff) about Friday nights - its a bad slot and Saturday night would be awesome.

All of this sort of thing just promotes the use of bad quality internet streams. But thats going to be the only way we are going to be able to see fights in the UK soon.

[Savino]

The UFC just cut it's ties with the Setanta and now looking for new network.

[Savino]

Setanta offically gone into adminstration.

[Sick/]

Setanta offically gone into adminstration.

Yeah English website is gone

[Shanks]

SETANTA IN ADMINISTRATION

no way am i going to pay some ****ing american company to watch ENGLISH football games. generally i liked the variety setanta had, decent football, UFC, boxing, baseball etc they even showed the NBA play offs. so unless ESPN can come up with some sort of package like this i will NOT subscribe.

[The RealDeal]

R.I.P. SETANTA


Your going to be missed, thats for sure.