From The Times
June 8, 2009
Setanta edges closer to administration
Setanta faces the prospect of calling an administrator ?a collapse that would wreak havoc with football club finances ?after the loss-making sports broadcaster failed to secure a deal that would guarantee its future as a business.
Deloitte, the accountant, is on standby to take over as the private equity-owned business struggles to close a funding gap of nearly ?0 million. A board meeting on Saturday failed to achieve a breakthrough, raising concerns that lucrative television deals will cease both north and south of the border.
Setanta’s board will hold another crisis meeting today against a bleak backdrop. It has failed to persuade shareholders to produce more cash, or find a new investor or buyer for the business, which analysts estimate is losing ?0 million a year.
The mood at Setanta has become increasingly gloomy over the past week as no answer to its problems has emerged. Its backers, led by Goldman Sachs, Doughty Hanson and Balderton Capital, have refused to offer more than ?0 million of the ?00 million needed to secure its future.
The ailing broadcaster failed to make a ? million payment to the Scottish Premier League (SPL) last week because it could not release cash to third parties until it found out whether it was viable. It is thought that it will be in default from today.
The SPL said that it was still talking to Setanta and there were no immediate plans to seek a winding-up order to get its cash. Setanta has five years to run of a ?25 million contract. Nevertheless, the SPL said that it would “do whatever was needed to protect our member clubs?interests?
Setanta has asked the SPL and its other sporting partners the Football Association, the FA Premier League and the US PGA, the American golf body, to make concessions.
Setanta has one season left on its three-year, ?92 million deal with the FA Premier League, with a new ?59 million three-year deal to follow after that. It also holds rights to show some FA Cup and England games, bought for ?50 million in a four-year deal.
June 8, 2009
Setanta edges closer to administration
Setanta faces the prospect of calling an administrator ?a collapse that would wreak havoc with football club finances ?after the loss-making sports broadcaster failed to secure a deal that would guarantee its future as a business.
Deloitte, the accountant, is on standby to take over as the private equity-owned business struggles to close a funding gap of nearly ?0 million. A board meeting on Saturday failed to achieve a breakthrough, raising concerns that lucrative television deals will cease both north and south of the border.
Setanta’s board will hold another crisis meeting today against a bleak backdrop. It has failed to persuade shareholders to produce more cash, or find a new investor or buyer for the business, which analysts estimate is losing ?0 million a year.
The mood at Setanta has become increasingly gloomy over the past week as no answer to its problems has emerged. Its backers, led by Goldman Sachs, Doughty Hanson and Balderton Capital, have refused to offer more than ?0 million of the ?00 million needed to secure its future.
The ailing broadcaster failed to make a ? million payment to the Scottish Premier League (SPL) last week because it could not release cash to third parties until it found out whether it was viable. It is thought that it will be in default from today.
The SPL said that it was still talking to Setanta and there were no immediate plans to seek a winding-up order to get its cash. Setanta has five years to run of a ?25 million contract. Nevertheless, the SPL said that it would “do whatever was needed to protect our member clubs?interests?
Setanta has asked the SPL and its other sporting partners the Football Association, the FA Premier League and the US PGA, the American golf body, to make concessions.
Setanta has one season left on its three-year, ?92 million deal with the FA Premier League, with a new ?59 million three-year deal to follow after that. It also holds rights to show some FA Cup and England games, bought for ?50 million in a four-year deal.
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