Setanta sinks into administration
- 00:02:53
- ITN
Setanta sinks into administration
Beleaguered Irish sports broadcaster Setanta Sport has gone into administration in the UK with the loss of 200 jobs. Its UK channels went off-air just before 6pm, with a message saying the firm had "ceased trading in Great Britain". Deloitte, which has been appointed as administrator for Setanta Sports Holdings - the parent firm which owns businesses in Britain, Ireland and internationally - said the non-UK businesses continue to trade while talks with possible buyers are under way. On Monday, Disney-owned ESPN won the rights to show 46 live Premier League matches for the 2009/10 season and 23 matches for the following three years after Setanta was forced to give them up after missing a contractual payment. The US sports network said it plans to make its coverage as widely available as possible, across multiple pay-TV platforms, and has already agreed for its coverage to be retailed by BSkyB, to residential and commercial customers. For the 2009/10 season, BSkyB will show 92 games and ESPN 46. For the following three years, BSkyB will show 115 and ESPN the remaining 23. The company still holds the rights to other major sporting fixtures including the FA Cup, some England matches, US PGA golf and, from next year, Guinness Premiership rugby. Setanta, which employs around 430 people, hit trouble after failing to secure sufficient subscribers to cover the cost of its sports rights. It has 1.2 million direct subscribers but needs nearer 1.9 million to break even, according to analysts. Last Friday, a potential investor in the group also walked away from a rescue deal, leaving the group's future in serious doubt. In 2006, Setanta won the rights to break BSkyB's hold on English soccer, agreeing to pay £392 million over three seasons from 2007. The League declined to give a figure for the new deal on Monday, but analysts had said they expected the terms to be lower. The Scottish Premier League has also taken its rights back from Setanta after a £3 million payment was missed. It said it is actively engaged in finding a new partner and BSkyB and ESPN are expected to lead the bidding.
ITN | June 23, 2009
