Setanta to add 50 to workforce

SETANTA Sports is planning to continue its resurrection from near collapse last year, by expanding into the Asian market and increasing its Dublin-based workforce.

The move by the company – which is now almost fully back under Irish ownership – continues its phoenix-like recovery, after its previously core British division, Setanta Sports Holdings, went bust last summer after a failure to pay for Premier League transmission rights – leading to the loss of 200 jobs.

The eastern expansion will target the Asian market, excluding the Middle East and Japan; with the likes of Hong Kong, Singapore and Malaysia likely to be the launch pads for the new television service. An introductory broadband offering launched there just over a week ago and a full television service should be up and running before the end of this year.

Asia will become Setanta Sports’ fifth division – alongside Ireland, Australia, Canada and its online Setanta Bet gaming business, which is due to go live next week. MLM Management Ltd now owns 100% of Setanta Bet and the Australian and Asian businesses. Setanta Ireland is now 40% owned by MLM and 60% owned by music promoter, Denis Desmond’s Gaiety Investments vehicle.

The only international investment in any strand of the Setanta business now just lies in the Canadian division, where local media player, Rogers Communications controls a 50% stake.

The Asian service will initially cater for rugby-loving expatriates in the far-east, as the company has the rights, for the region, of most major international rugby competitions.

Speaking yesterday, Mr Ryan said that the scale of the new deal proves that Setanta is a “long-term” player in the international broadcasting market.

Given that most of the rights will be paid for on a phased basis, over the next three-to-four years, the initial investment of this move is thought to be relatively small; although Setanta’s management refused to comment on how much will be spent overall in establishing the Asian business.

Nor is it known just how much was paid by the Fox Network in the US for Setanta’s American division, last year. Much of the proceeds from that sale are being used in expanding the company’s interests into Asia. While the collapse of the British business put considerable pressure on the rest of the group, each remaining division of Setanta Sports is now profitable and existing free cash flow is also funding the expansion.

The company is also looking to boost employment figures in Ireland from the 150 to more than 200 inside the next year and a half.

The company has no plans to re-enter the British market in the foreseeable future.