Premier League Hands Setanta Payment Deadline
The Premier League has handed troubled broadcaster Setanta a deadline of Friday, 19th June to pay a reported £30m due for its latest rights payment or face losing the games it has bought for next season.
With administration a very real threat, Setanta has been struggling to make its payments to the sporting bodies from which it buys television rights – missing payment deadlines for both the Premier League and the Scottish Premier League in the last month.
In handing Setanta this deadline, the Premier League has threatened to sell the rights to the 46 live matches Setanta is supposed to be showing in the 2009/2010 season to the highest bidder if the payment is not met.
The Premier League said it had invited bids for the 46 live matches with Setanta’s agreement.
‘In view of the shortage of time before the start of next season, the Premier League has determined, with the agreement of Setanta, that it shall today issue its invitation to tender in respect of the 46 UK live matches for the 2009/10 season only,’ the league said in a statement.
‘The bid deadline has been set for Monday, 22nd June, but we will give all prospective bidders notice late on Friday, 19th June, if Setanta have met their conditions, thereby negating the need for bids to be submitted.’
However, there is cause for optimism for the ailing broadcaster with Access Industries, controlled by the US investor Len Blavatnik, tabling a £20m bid for a 51% share in the company over the weekend.
Additionally, media speculation linked production firm Endemol, which devised the Big Brother reality series, to negotiations over further investment regarding taking up a 49% stake in Setanta
As a result of the expressions of interest, having suspended sales last week Setanta has now reopened its website to new subscribers.
Setanta has around 1.2m subscribers, but that is short of the estimation of industry analysts, who say it needs 1.9m to break even.
Potential investors are now carrying out intense ‘due diligence’ on the company which should be completed by the Premier League’s deadline of 19th June.
Deloitte has been lined up as administrator if Setanta’s efforts fail.
