Setanta 'could be forced into administration'
Cash-strapped sports broadcaster Setanta could be forced into administration this week after failing to make payments due on TV rights, reports said today.
Deloitte is on standby to act as administrator for the firm unless it agrees a last-minute rescue with its investors, the Sunday Times and the Sunday Telegraph said.
The Irish firm, which showed England’s 4-0 World Cup win away to Kazakhstan on Saturday, is struggling to pay cash owed to football associations under its rights deals.
Setanta – which was unavailable for comment – has about 1.2 million customers but this is well below the 1.9 million it needs to break even, the Sunday Times says.
If the company fails to cut its rights payments or raise more cash from investors and falls into administration, it could trigger a fire-sale of TV rights, including the England national team’s away qualifiers and FA Cup matches.
ITV and Setanta won the contract from the Football Association in 2007 before the recession hit, impacting on advertising revenues.
The FA is said to have rebuffed attempts by Setanta to reduce its £150m (€171m) share of the £425m (€486m) four-year deal by 25%.
Setanta also has rights to screen matches from the Barclays Premier League, which is awaiting a £35m (€40m) payment later this month, the Sunday Times said.
Last week it failed to pay the £3m (€3.4m) owed to the Scottish Premier League under the final instalment of this season’s TV deal, and has until tomorrow to come up with the cash.
It has also been seeking to cut the price of its current £125m (€142m) deal with the SPL. The SPL has agreed to pay the £3m (€3.4m) outstanding from its own funds to its 12 member clubs to ease the financial pressure.
The two founders of the business, Irishmen Michael O’Rourke and Leonard Ryan, set up Setanta in 1990.
Deloitte was unavailable for comment.
