Setanta faces end of the line

Setanta’s fate should be decided today, with time looking to have run out for the stricken broadcaster.

Another emergency board meeting to try to stave off administration was held last night with directors considering a last-ditch rescue package.

It also emerged yesterday that BSkyB refused a £50m (€58m) lifeline to the Irish pay-TV broadcaster which is in crisis with a payment of more than £30m (€34.8m) due to the Premier League this week and backers refusing to advance them any more money.

Setanta’s subscription services for new customers also became unavailable yesterday. Internet applicants were flashed a message saying: “Oops! Something has gone wrong....”

Setanta’s customer services confirmed to callers that new subscriptions were unavailable due to a “technical problem”.

Sky’s chief executive Jeremy Darroch said it was “a broadcaster not a bank”, but insisted it had no wish to see Setanta go into administration.

Setanta had asked Sky for £50m (€58m) and in return offered access to the live rights to 46 Premier League games next season as an add-on option to Sky Sports.

Mr Darroch told a Sports Industry Group event: “Our job is not to fund other companies.

“We have been talking to Setanta, and trying to work with them and help them.

“At the end of the day we are not a bank, we are a broadcaster, not a supplier of working capital to a business and rights holder.

“Our job is not to fund other companies. This is a huge amount of money.”

Another broadcaster, ESPN, is favourite to step in and take over Setanta’s Premier League games if it goes into administration.

The Premier League should not be too badly affected should Setanta go into administration as they have only won one of the six live broadcast packages for 2010 to 2013.

The Football Association, which has a £150m (€174m) deal for England and FA Cup games with Setanta, and the Scottish Premier League have more significant problems, however, even though their agreements have been front-loaded in terms of cash being paid in advance.

Under a pre-arranged deal, ITV would take over the rights to up to eight England away friendlies for a pre-agreed sum.

The FA Cup would provide more problems but it is understood the FA would approach ITV in the first instance to see if it wants to take over any live games. If ITV was not interested, it would approach other broadcasters – both terrestrial and subscription.

Scottish Football Association chief executive Gordon Smith admitted he was concerned about the situation.

Setanta failed to pay the final instalment of this season’s TV deal last week, leaving the SPL to dip into its own coffers to distribute around £3m (€3.5m), the amount due, to its 12 member clubs.

In April, the SPL clubs agreed to Setanta’s request to change the terms of the contract due to begin at the start of the 2010-11 season, which was initially worth £125m (€145m).

Smith said: “We don’t really know what is going on, it is an SPL broadcasting deal but obviously it is a concern if there is a problem for the league.”