Plug is pulled on ailing Setanta Sports
The company has been hit by the loss of football television rights and went off-air in Britain just before 6pm with the loss of 200 jobs. Nineteen Irish-based jobs are also going – 15 in the media companies and four in Setanta Sport Holdings.
The move was fully expected after the company failed to meet the second of three payment deadlines last Friday for transmission rights for its English Premiership football coverage next season, and an expected rescue bid headed up by Russian financier, Len Blavatnik didn’t materialise.
Setanta Ireland and other international broadcasting arms of the group (it also operates in the US, Canada, Australia, the Caribbean and Africa) have not gone into administration, as they are still profitable, and will continue to air as normal for the foreseeable future.
It is the intention to sell these off as going concerns in the coming weeks.
A number of names have been linked to a possible purchase of the Irish broadcasting arm, including music promoter Denis Desmond, but nothing concrete has emerged as yet.
In the immediate future, Irish viewers are now likely only to be able to access Setanta Ireland and Setanta 1 as of this week.
Deloitte’s Neville Kahn said the company is “in discussions with parties to take those businesses on as going concerns”.
The move comes just 24 hours after the Premier League handed Setanta’s football rights – containing 46 matches for the 2009/10 season and 23 matches per season from 2010/11 to 2012/13 – to US broadcaster ESPN.
News of the Premier League’s sale followed an announcement by the Scottish Premier League that it was ditching Setanta and looking for another television partner.
Cash-strapped Setanta missed a €3.5 million (£3m) payment to the SPL and failed to meet a deadline for a €11.6m (£10m) payment to the Premier League last week – prompting the auction.
It was unable to pay the Premier League following the collapse of a potential rescue deal with tycoon Len Blavatnik’s Access Industries.
Setanta’s backers, private equity firms Doughty Hanson and Balderton Capital, and Goldman Sachs, were “prepared to commit substantial additional funds” to the business, in return for an improved performance, the firm said.
But despite progress in renegotiating rights agreements it was not enough to return the firm to profit.
Setanta chairman Robin Miller said it was “a sad day for all concerned”.
The Football Association will have to auction off the rights to FA Cup and England matches to cover a €11.6m (£100m) gap in its finances following the administration.
Deloitte will also act as receiver to Irish parent company Setanta Sport Holdings and three other Irish subsidiaries, as well as administrator to the two British firms, Setanta Sport Limited and Setanta Transmissions Limited.
