Setanta’s TV rights put out to tender

THE holding company which runs the Premier League in England has put the English transmission rights for Premiership football matches still controlled by Setanta out to tender.

However, the move is understood to be a precautionary action taken in case the Dublin and London- based broadcaster goes out of business. It is also believed the rights will be returned to Setanta once the rescue package currently being hammered out copper fastens its long-term future.

The rights are for the upcoming 2009/10 season, the last year in whichSetanta will have the rights to screen 46 live top division games in Britain. The following three years, covering the 2010/11-2012/13 seasons, will see Setanta cover only half that number of live matches, after losing out to Sky in the last tender round, earlier this year.

Endemol, the Dutch television production company behind the Big Brother reality television series, is believed to be the latest investor to join Setanta’s estimated £50 million (€59m) rescue consortium; currently comprising Irish founders Michael O’Rourke and Leonard Ryan and US-based Russian-born financier Len Blavatnik, whose Access Industries vehicle is looking for a 51% controlling stake.

Although reports suggest Endemol’s interest may cool if a small minority stake is all that is on offer, it is still interested.

Endemol already has a link with Setanta. It is run by Ynon Kreiz, who is a former partner at venture capitalist (and current Setanta shareholder) Balderton Capital and a previous board member of the broadcaster.

The board of Setanta accepted a rescue bid on Friday. The takeover deal is due to go through in the coming days, after due diligence is completed.

Setanta had until yesterday to pay off a £35m (€41m) debt relating to transmission rights to the Premier League in England.

Part of this sum, around £10m (€12m), was paid off last Friday. A similar amount is due to be paid later this week. And the remaining £15m (€18m) is expected to be cleared before the end of the summer.

The company is also set to pay debts owing to the Scottish Premier League.

A Setanta spokesperson said: “Given the speed of events and Access’s offer being subject to due diligence it is not unexpected that the Premier League would offer Setanta’s TV rights for tender as a contingency measure. Providing Setanta’s board approves the transaction by next Friday we expect the Premier League will withdraw the tender process.”