Administration Looms For Setanta
According to media reports, pay-TV broadcaster Setanta is facing the prospect of administration this week after failing to secure a last-ditch investment deal to guarantee its immediate future – a scenario that will leave a substantial revenue hole for its partners including a number of the major football rights holders.
Accountants Deloitte are reported to be on standby to take over as the private equity-owned business struggles to close a funding gap of nearly £50m.
Setanta’s board will hold another crisis meeting this week but has thus far failed to persuade shareholders to produce further backing or find a new investor or buyer for the business, which analysts estimate is losing £90m a year.
Its backers, led by Goldman Sachs, Doughty Hanson and Balderton Capital, have refused to offer more than £50m of the £100m needed to secure its future.
The ailing broadcaster failed to make a £3m payment to the Scottish Premier League (SPL) last week because it could not release cash to third parties until it found out whether it was viable.
The SPL said that it was still talking to Setanta and there were no immediate plans to seek a winding-up order to get its outstanding payment although Setanta has five years to run of a £125m contract.
Setanta has asked the SPL and its other rights holding partners the Football Association, the FA Premier League and the US PGA, the American golf body, to make concessions.
Setanta has one season left on its three-year, £392m deal with the FA Premier League, with a new £159m three-year deal to follow after that. It also holds rights to show some FA Cup and England games, bought for £150m in a four-year deal.
