Setanta on the brink of collapse

[TightEnd]

bbc

Setanta faces administration "within days" unless backers provide more funds to pay £30m it owes to the English Premier League, reports suggest.

The broadcaster has already failed to pay the Scottish Premier League £3m it owes in television rights money.

Setanta, which also shows cricket, golf and rugby union, has about 1.2 million subscribers, but is losing up to £100m a year, analysts say.

Deloitte is set to step in to run the firm if it goes into administration.

The rights to show the English Premier League - and the subscribers that this pulls in - lie at the heart of Setanta's business model.

But the firm had only about 60% of the subscribers it needed to break even, said Professor Chris Brady of the BPP Business School.

"They have predicated the whole thing on getting those subscribers. The problem is they are taking on Goliath in BSkyB," he told the BBC.

Not only did Setanta have only a small percentage of televised Premier League games, but they tended to be "weaker" matches, he added.

There had also been problems with customer service, Professor Brady told the BBC.

Setanta's viability was cast into doubt earlier this year when it lost the rights to show 46 live Premier League matches from 2010/2011.

In future it will show only 23 games per season, compared with BSkyB's 115, with industry observers saying that thousands of customers would give up their subscriptions.

It is expected that a rival broadcaster - perhaps ESPN - would buy up its Premier League football rights.

But the worsening economy has led observers to suggest that the rights to 46 games which Setanta holds for next season, the final year of its current contract, would not be worth as much as they had been.

There are also doubts about whether the Premier League could match the £159m Setanta paid for the right to screen 23 Premier League games each season from 2010-11.

A shared deal with ITV saw them secure rights for England and FA Cup matches for £425m - and it is likely another firm would buy up these rights.

[Acidmouse]

I really hope they fail bigtime, a right bag'o'shite they are. Let sky have the lot.

[Josedinho]

Their picture quality is very poor, they employ Graham Poll and they're down with ITV in terms of commentary standards.
As it is only a month to month contract there isn't much to keep you from cancelling for June and July and then rejoin in August with one of their discounted joining offers.
Hopefully Sky will be allowed to pick up all the premiership games and BBC take the England games off their hands.
I don't want to lose Racing UK though.

[Jon MW]

I thought about posting this article yesterday, but I thought only finance geeks like Tighty would be interested.

It's basically the same story written for private equity chaps.

Setanta close to the edge
Monday, 8th June 2009

Doughty Hanson, Balderton Capital and Goldman Sachs-backed sports broadcaster Setanta may be forced into administration this week after failing to make payments due on TV rights.

Deloitte is poised to act as administrator for the company unless an 11th hour agreement can be reached with its investors, according to the Sunday Times.

The Barclays Premier League is awaiting a £35m (€39m) payment later this month.

In addition, Setanta failed to pay the £3m it owed to the Scottish Premier League under the final instalment of this season's TV deal last week. It is understood to have until the end of today to come up with the cash.

The FA is also understood to have turned down an offer from Setanta to reduce its £150m share of a £425m four-year deal on England and FA Cup games by 25 per cent.

Doughty Hanson and Goldman Sachs were reported to have written down the value of their stakes in the business to zero in March, after Setanta missed out on a deal to broadcast Premiership football.

It won rights to screen just 23 Premier League fixtures per season from 2010, a 50 per cent reduction on its current haul of televised games.

Former Emap head Sir Robin Miller was parachuted into the company recently to spearhead an emergency £100m refinancing.

Doughty Hanson and Balderton each have a 20 per cent stake in the business, while Goldman Sachs owns five per cent.

[NoflopsHomer]

Oh noes, where will Charlotte Jackson go?

[TheChipPrince]

Oh noes, where will Charlotte Jackson go?

Right about here I think...

http://blondepoker.com/forum/index.php?topic=42202.345

[Rooky9]

Cancelled my subscription on Saturday, they didn't go for the usual thing of trying to make you stay. Sky aren't allowed all packages, could we see BBC or itv pick up a package on the cheap?

[MC]

I really hope they fail bigtime, a right bag'o'shite they are. Let sky have the lot.

+1

[Rooky9]

I really hope they fail bigtime, a right bag'o'shite they are. Let sky have the lot.

+1

-1

Have a think about the people who work for them. I wouldn't wish any company to go under.

[rossfourfive]

I really hope they fail bigtime, a right bag'o'shite they are. Let sky have the lot.

+1

-1

Have a think about the people who work for them. I wouldn't wish any company to go under.

Will also put at least 3 SPL clubs into administration.

[Rod Paradise]

I really hope they fail bigtime, a right bag'o'shite they are. Let sky have the lot.

+1

-1

Have a think about the people who work for them. I wouldn't wish any company to go under.

Will also put at least 3 SPL clubs who forced us into the Setanta deal in the first place  into administration.

FYP.

In a long history of dumb moves the one to  knock back Sky, attempt to launch SPL TV, & eventually sign up with Setanta was the worst. All forced by the numpty 10 to try and screw more money out of the big 2.

Click to see full-size image.

[rossfourfive]

I really hope they fail bigtime, a right bag'o'shite they are. Let sky have the lot.

+1

-1

Have a think about the people who work for them. I wouldn't wish any company to go under.

Will also put at least 3 SPL clubs who forced us into the Setanta deal in the first place  into administration.

FYP.

In a long history of dumb moves the one to  knock back Sky, attempt to launch SPL TV, & eventually sign up with Setanta was the worst. All forced by the numpty 10 to try and screw more money out of the big 2.

Incorrect. Aberdeen were for the Sky deal aswell.

[Rod Paradise]

I really hope they fail bigtime, a right bag'o'shite they are. Let sky have the lot.

+1

-1

Have a think about the people who work for them. I wouldn't wish any company to go under.

Will also put at least 3 SPL clubs who forced us into the Setanta deal in the first place  into administration.

FYP.

In a long history of dumb moves the one to  knock back Sky, attempt to launch SPL TV, & eventually sign up with Setanta was the worst. All forced by the numpty 10 to try and screw more money out of the big 2.

Incorrect. Aberdeen were for the Sky deal aswell.

Were they?

OK then 1/2 an apology to Aberdeen, but they still jumped in with the Numpty 9 to continue forcing Scottish football down the wrong road.

[gatso]

I really hope they fail bigtime, a right bag'o'shite they are. Let sky have the lot.

+1

-1

Have a think about the people who work for them. I wouldn't wish any company to go under.

Will also put at least 3 SPL clubs who forced us into the Setanta deal in the first place  into administration.

FYP.

In a long history of dumb moves the one to  knock back Sky, attempt to launch SPL TV, & eventually sign up with Setanta was the worst. All forced by the numpty 10 to try and screw more money out of the big 2.

Incorrect. Aberdeen were for the Sky deal aswell.

rod meant aberdeen and rangers when he said big 2

[gatso]

why will this put spl clubs into admin? I'm completely clueless about any deal that was done with setanta, didn't even know there was one