"Setanta Sports founders Michael O’Rourke and Leonard Ryan have found an international backer that could help them secure the future of the Dublin-based pay TV sports broadcaster.
Mr O’Rourke and Mr Ryan will put an offer for a majority stake in the cash-strapped business to the company’s directors at a board meeting in London today.
This offer is backed by a major international group and will involve an investment of about £50 million (€58.7 million) in the company.
This will result in Mr O’Rourke, Mr Ryan and their backer taking a majority stake in the business.
If accepted, other shareholders, including private equity firms Balderton Capital and Doughty Hanson, which owns TV3, would have their holdings in the Irish firm diluted.
A deal would also secure about 450 jobs at the broadcaster, including about 200 in Ireland.
Setanta, which is loss-making, urgently needs an injection of cash to prevent the company from slipping into administration.
Mr O’Rourke and Mr Ryan have worked around the clock this week to secure a rescue package to save the company they founded in 1990.
Accounting firm Deloitte was placed on standby to act as administrator to the business if new investment could not be secured.
Setanta has committed close to £1 billion in recent years to secure live rights to top sports including Premier League football and the FA Cup in England, the Scottish Premier League (SPL), PGA golf in the US, Uefa Champions League football and Formula One motor racing.
Earlier this month, Setanta missed a £3 million payment due to the SPL. It was reportedly due to make a £35 million payment to the Premier League in England this week.
Its difficulties began in February when Setanta lost one of its Premier League live rights packages to Sky. This means it will only be able to show 23 live games from August 2010 for three seasons.
In parallel with seeking new investment, Setanta has sought to renegotiate its various rights deals with rights holders. It is believed to have sought discounts of up to 25 per cent from rights holders. The firm has sought to trim other costs within the business in a bid to put the company on a footing to reach breakeven.
Failure to agree a deal today could push the company towards administration. This would result in its rights reverting to the various sporting bodies and could result in Setanta being broken up."
Its going to be difficult for them, even if they get funding, with consumers reluctant to pay more out due to the economy and existing subscribers reluctant to renew due to loss of confidence in the long term future any new investor will only shore them up for a period of time. They will need to spend more marketing money, make some of the people, whose jobs are saved, redundant. The alternative would be for them top drop their channels and sell the rights they own to other channels i.e. ESPN, BBC etc,. again losing the jobs of many who currenlty may feel they are saved.
BSKYB only became BSKYB after they shot BSB and their square satellite dish out of the market. This rescue package could result in a long slow death for Setanta.
[cite]Posted By: les_says[/cite]is it a good time to cancel my subscription?
Depends if you like sport other than football as there won't be much of that on over the next 6 weeks.
Or alternatively ring up and say you'd like to cancel and they'll ask you if you'll stay with them at a cheaper rate. My dad rang up to cancel his and they said would he be interested in staying for just £4.99 a month.
i rang up to change payment details , we were paying £12.99 per month and they said ' you can have it for £9.99 now' ... i should ring up and cancel now
The probelm with Setanta failing will not be with the Premiership but the Scottish League where outside of a few this was vital money and who now willbe bothered to pick it up. For Scotland this could send some clubs to the wall
so is it right that ESPN will be another channel you have to pay extra for to get it on sky, like setanta was? more money to pay to be able to watch all the PL games
if the bbc hadn't paid for forumla 1 which was already on a terrestrial channel then they could have put in a bid for one of the packages.
Has Setanta still got the rights to England away and U21s etc? If so, thanks to the EU, I will be paying three subscriptions instead of one - so much for "competion" benefitting the consumer....
They've just gone into administration, according to the BBC they'll stop subscription payments immediately, but it's best to cancel your direct debit now.
cancelled mine this morning anyway. email requests@setanta.com with your name, address, phone no. and setanta account number. they'll respond in 48 hours (allegedly.....)
I'll try to find out some info at work about this and how it will affect subscribers (currently working at Ofcom). 200+ jobs to go in UK. Irish and international services staying on air for time being whilst they look for a buyer.
ITV hold FA Cup and England home matches, so these comes won't be adversely affected. I suppose ESPN or Sky will bid for Sultana's share of the FA Cup coverage IF they go under.
[cite]Posted By: carly burn[/cite]How many clubs do you reckon have all ready spent the millions of pounds that sultana were going to give them over the coming years? oops.
I do hope Scally hasn't made the same mistake again... Still, at least he'll have someone else to blame other than ITV Digital
[cite]Posted By: nth london addick[/cite]where the hell am i going to watch the UFC
SKY BUY THIS SPORT NOW SOD CAGE RAGE
I thought ufc have guarenteed that ufc 100 would be shown in England regardless of whether setanta went bust. I dont really want sky to get it, I think they will turn it into a PPV event .
The US broadcaster ESPN has announced plans to launch a new UK sports channel, called ESPN, on 3 August.
The channel will show 46 live Barclays Premier League football games, which were to have been shown by Setanta until it missed a payment deadline.
The channel will also show some of the US sports to which ESPN owns rights.
ESPN has reached an initial deal to have the channel shown on Sky, but it is in talks with all UK pay-TV platforms about carrying the service.
Sky will also be responsible for selling advertising on the new channel.
ESPN owns the rights to broadcast 46 live Premier League games in the 2009/10 season and 23 matches for each of the following three seasons.
Sky's residential customers will have to pay a premium of £9 a month for the new channel if they already pay for Sky Sports or £12 a month if they do not.
For commercial customers it will be part of the "ultimate" channel package.
The Premier League matches on ESPN will be produced by Sky Sports, although it will feature ESPN branding.
ESPN also owns rights to show American football, ice hockey, baseball and college football and basketball throughout Europe, which it used to show in the UK on its ESPN America channel.
Comments
Just rang them up and they are doing 3 months for £6.50, whereas I was paying £12.00.
Smells like they are definately going to go pop. . . .
Going the same way as Jim's On Digital.
Yes, you won't be getting your £9.99 back!! ;-)
"Setanta Sports founders Michael O’Rourke and Leonard Ryan have found an international backer that could help them secure the future of the Dublin-based pay TV sports broadcaster.
Mr O’Rourke and Mr Ryan will put an offer for a majority stake in the cash-strapped business to the company’s directors at a board meeting in London today.
This offer is backed by a major international group and will involve an investment of about £50 million (€58.7 million) in the company.
This will result in Mr O’Rourke, Mr Ryan and their backer taking a majority stake in the business.
If accepted, other shareholders, including private equity firms Balderton Capital and Doughty Hanson, which owns TV3, would have their holdings in the Irish firm diluted.
A deal would also secure about 450 jobs at the broadcaster, including about 200 in Ireland.
Setanta, which is loss-making, urgently needs an injection of cash to prevent the company from slipping into administration.
Mr O’Rourke and Mr Ryan have worked around the clock this week to secure a rescue package to save the company they founded in 1990.
Accounting firm Deloitte was placed on standby to act as administrator to the business if new investment could not be secured.
Setanta has committed close to £1 billion in recent years to secure live rights to top sports including Premier League football and the FA Cup in England, the Scottish Premier League (SPL), PGA golf in the US, Uefa Champions League football and Formula One motor racing.
Earlier this month, Setanta missed a £3 million payment due to the SPL. It was reportedly due to make a £35 million payment to the Premier League in England this week.
Its difficulties began in February when Setanta lost one of its Premier League live rights packages to Sky. This means it will only be able to show 23 live games from August 2010 for three seasons.
In parallel with seeking new investment, Setanta has sought to renegotiate its various rights deals with rights holders. It is believed to have sought discounts of up to 25 per cent from rights holders. The firm has sought to trim other costs within the business in a bid to put the company on a footing to reach breakeven.
Failure to agree a deal today could push the company towards administration. This would result in its rights reverting to the various sporting bodies and could result in Setanta being broken up."
BSKYB only became BSKYB after they shot BSB and their square satellite dish out of the market. This rescue package could result in a long slow death for Setanta.
Depends if you like sport other than football as there won't be much of that on over the next 6 weeks.
Or alternatively ring up and say you'd like to cancel and they'll ask you if you'll stay with them at a cheaper rate. My dad rang up to cancel his and they said would he be interested in staying for just £4.99 a month.
http://news.bbc.co.uk/1/hi/business/8109954.stm
very funny.................
Just rang them up and they are doing 3 months for £6.50, whereas I was paying £12.00.
Smells like they are definately going to go pop. . . .[/quote]
After I posted this I cancelled my direct debit. Robbin b'satrds weren't getting my hard earned.
I want ESPN to get Setanta's bits as I love the baseball and Ch442.
if the bbc hadn't paid for forumla 1 which was already on a terrestrial channel then they could have put in a bid for one of the packages.
As for away rights, I refer you to answer Ledge gave earlier
I do hope Scally hasn't made the same mistake again... Still, at least he'll have someone else to blame other than ITV Digital
SKY BUY THIS SPORT NOW SOD CAGE RAGE
I thought ufc have guarenteed that ufc 100 would be shown in England regardless of whether setanta went bust. I dont really want sky to get it, I think they will turn it into a PPV event .
Uk Ufc Dude on Setanta and UFC 100
The channel will show 46 live Barclays Premier League football games, which were to have been shown by Setanta until it missed a payment deadline.
The channel will also show some of the US sports to which ESPN owns rights.
ESPN has reached an initial deal to have the channel shown on Sky, but it is in talks with all UK pay-TV platforms about carrying the service.
Sky will also be responsible for selling advertising on the new channel.
ESPN owns the rights to broadcast 46 live Premier League games in the 2009/10 season and 23 matches for each of the following three seasons.
Sky's residential customers will have to pay a premium of £9 a month for the new channel if they already pay for Sky Sports or £12 a month if they do not.
For commercial customers it will be part of the "ultimate" channel package.
The Premier League matches on ESPN will be produced by Sky Sports, although it will feature ESPN branding.
ESPN also owns rights to show American football, ice hockey, baseball and college football and basketball throughout Europe, which it used to show in the UK on its ESPN America channel.