Setanta Sports sale unlikely to happen for 18 months

THE sale of broadcaster Setanta Sports is unlikely to happen for at least 18 months.

The company had been informally considering its future options, but its shareholders are not thought to be looking at an immediate sale of the company.

Despite weekend media reports in Britain, it is also understood the channel, founded by Leonard Ryan and Michael O’Rourke, is not seeking new funds from investors.

Earlier this year it was reported that Setanta had appointed Goldman Sachs to prepare the company for a sale. It had been speculated that the likes of British Telecom, American sports broadcaster ESPN and Virgin Media were considering making a bid.

However, Setanta had not formally engaged financial advisers and any sale is unlikely until after the next process to bid for English Premier League matches ends.

In 2006, Setanta sensationally snatched some of the rights to broadcast Premier League games from BSkyB in a three-year deal worth €575 million. Those rights end after the 2009/2010 season but the process for the three years after that begins next year.

Another factor against a quick sale is how the company’s subscriber figures hold up over the summer months when the broadcaster has no major football coverage. The company is understood to be lining up the Indian Premier League Cricket to keep its subscribers, including 1.2m direct customers and a further 2m who receive the channels on Virgin cable in Britain interested until the 2008/2009 football season.

In addition to Premier League football, Setanta has snapped up the broadcast rights to England’s international football matches for the next four years and the FA Cup.

With the company loss-making, a sale would not achieve a price that would satisfy all of its investors.

Mr Ryan and Mr Rourke, Setanta’s joint chief executives, also remain significant investors in the company.