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http://business.timesonline.co.uk/tol/busi...icle6445881.ece

SETANTA, the sports broadcaster, is on the brink of collapse this weekend as it struggles to agree a rescue plan with rights holders and investors.

Deloitte, the accountancy firm, is on stand-by to put the company into administration. This would mean Setanta could disappear from the airwaves immediately.

For the past six months Setanta – which has 1.2m customers, considerably short of the 1.9m needed to break even – has been desperately trying to raise new capital to meet rights’ payments.The broadcaster has until tomorrow to pay the Scottish Premier League (SPL) £3m as part of its £31m a year deal.

The SPL held an emergency meeting last Wednesday to discuss the situation and has already decided to dip into its own emergency funds to distribute the payments to member clubs.

There are also huge repercussions for the Barclays Premier League, which is awaiting a £35m payment from Setanta due on June 15.

The company’s collapse could result in a fire sale of rights, including the £425m four-year deal for England and FA Cup matches it shares with ITV. Analysts say no-one will pay anywhere near Setanta’s rates to pick up the contract.

Setanta was started in a pub in Ealing, west London, in 1990 by founders Mickey O’Rourke and Leonard Ryan who bought the rights to the Republic of Ireland’s World Cup game against Holland and screened it, charging £5 entry.

The most likely outcome is understood to be a straightforward administration with most of the rights reverting to their holders.

I wonder what will happen to the TV rights, one would assume they'll be picked up by Sky, but at what price? Can Sky afford them?

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http://business.timesonline.co.uk/tol/busi...icle6445881.ece

I wonder what will happen to the TV rights, one would assume they'll be picked up by Sky, but at what price? Can Sky afford them?

Surely Sky will just offer a paltry amount ? They have everything in place to take over the coverage immediately. The football bubble is another one close to bursting.

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Good.

I have heard a few stories of how simple it wa sto sign up but how difficult it was to cancel a subscription with them.

This way everybody gets to leave without any hassle.

And a draining of TV money out of football will be a plus, it has just gone on ludicrous player wage inflation and encouraged debt accumulation because of speculative future gains. Sound familiar?

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I wonder what will happen to the TV rights, one would assume they'll be picked up by Sky, but at what price? Can Sky afford them?

Probably depends exactly what Setanta have paid already.If as suggested the rights go back to the league to resell they can't sell the EPL rights to Sky because the EU have prevented one broadcaster holding all the packages. They would auction them to the highest bidder maybe ITV or the BBC could get them?

Some of the other packages they own would probably sell for considerably less than Setanta paid which could cause some real problems for the SPL amongst others.

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Probably depends exactly what Setanta have paid already.If as suggested the rights go back to the league to resell they can't sell the EPL rights to Sky because the EU have prevented one broadcaster holding all the packages. They would auction them to the highest bidder maybe ITV or the BBC could get them?

Some of the other packages they own would probably sell for considerably less than Setanta paid which could cause some real problems for the SPL amongst others.

Forgot about that. Will make things a bit more interesting.

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Probably depends exactly what Setanta have paid already.If as suggested the rights go back to the league to resell they can't sell the EPL rights to Sky because the EU have prevented one broadcaster holding all the packages. They would auction them to the highest bidder maybe ITV or the BBC could get them?

Some of the other packages they own would probably sell for considerably less than Setanta paid which could cause some real problems for the SPL amongst others.

ITV would be out as they are broke, wasn't ESPN(?) interested before?

If not that leaves only the BBC.

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Surely Sky will just offer a paltry amount ? They have everything in place to take over the coverage immediately. The football bubble is another one close to bursting.

+1

All those season tickets, footbal shirts and other rubbish bought on credit cards for extortionate prices to fund £50k a week pay packets for primadona footballers. About time a reality check was taken.

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+1

All those season tickets, footbal shirts and other rubbish bought on credit cards for extortionate prices to fund £50k a week pay packets for primadona footballers. About time a reality check was taken.

It's called the 'Championship' or whatever it'll be re-branded to next season.

As a Geordie, I hope it finally sorts out our problems :<

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http://business.timesonline.co.uk/tol/busi...icle6445881.ece

I wonder what will happen to the TV rights, one would assume they'll be picked up by Sky, but at what price? Can Sky afford them?

It will be fascinating to see what happens to the Prem and Championship if TV revenue falls off a cliff (esp the Prem). This 800k PDF from today's Sunday Times shows that only Birmingham, Hull, and Stoke are essentially debt free. The likes of Man U & Liverpool may be able to generate enough dosh to stay alive, but Fulham, Wigan, Bolton??? See also Debt no threat to Big Four if they keep winning.

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It will be fascinating to see what happens to the Prem and Championship if TV revenue falls off a cliff (esp the Prem). This 800k PDF from today's Sunday Times shows that only Birmingham, Hull, and Stoke are essentially debt free. The likes of Man U & Liverpool may be able to generate enough dosh to stay alive, but Fulham, Wigan, Bolton??? See also Debt no threat to Big Four if they keep winning.

Not a lot of TV money in the Championship - ?£1.5m pa.

The risk is to clubs gambling to go up or coming down with debts.

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I hope they crash and burn. I cannot stand Setanta.

It p*sses me off no end the the EU forced a split of TV rights in the "interests of consumers". All I did was force up the price of watching the same number of matches, with the quality of coverage highly degraded for the games Sky lost.

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I hope they crash and burn. I cannot stand Setanta.

It p*sses me off no end the the EU forced a split of TV rights in the "interests of consumers". All I did was force up the price of watching the same number of matches, with the quality of coverage highly degraded for the games Sky lost.

Yep, they are a bunch of leeches. From my POV it was a case of "Here, we have taken away something you used to get for free but you can still watch it, provided you pay us for the privilige."

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SETANTA has one of worst customer service records of any company in the UK

Along with Talk Talk and ..................

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Will be nice to get all sports back on Sky as having two subscriptions is a bit much - will also be nice to be able to watch Republic of Ireland matches again. Perhaps RTE will start up a channel showing Gaelic football and hurling etc to compensate for the loss to Ireland.

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Along with Talk Talk and ..................

the banks and.............

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Brilliant news. Good riddance.

Theres no point trying to bust Skys monopoly with ANOTHER pay tv service.

Make the competiton free to view or dont bother.

Apparently England played yesterday, i wonder how many saw it live?

As i said, good riddance.

Brown and Setanta both gone inside a week?

Not to mention Smith, Blears, Hoon, McNumpty.

What a week!!! :lol:

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The likes of Man U & Liverpool may be able to generate enough dosh to stay alive, but Fulham, Wigan, Bolton??? See also Debt no threat to Big Four if they keep winning.

OMG Nick Harris's complacency there is staggering! It would take only a tiny swing in revenue for one of these clubs to go under.

e.g a season with less TV revenue and gates going down

The short sightedness of the article makes me think Nick really belongs in our banking sector or in BTL

<edit to change 'profits' to 'revenue'>>

Edited by slurms mackenzie

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Yep, they are a bunch of leeches. From my POV it was a case of "Here, we have taken away something you used to get for free but you can still watch it, provided you pay us for the privilige."

When did you ever get Premiership coverage for free?

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I follow my local team in the Blue Square Premier and we make a bit of money from Setanta showing league games and I get to see us away a couple of times a season in a local club showing Setanta. Not sure anyone else would want to take on showing conference game would effect turnover of smaller clubs

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Surely the real significance here is that it massively improves Sky's bargaining power when it comes to the next Premiership deal.

But isn't there something of a Catch 22 here? The Premiership needs the money from Sky to fund the investment in players to attract the money from Sky etc. etc.

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