Millions to be lost as Setanta Sports faces administration
Setanta sports is days away from administration, unless investors pump more funds into the company to pay the £30 million it owes top the English Premier Football League. The troubled broadcaster has already failed to pay the £3 million it owes in television rights to the Scottish Premier League.
The broadcaster has been in trouble since it lost the rights to air half of the premier league football matches they were due to show. They have also only raised half of the £100 million in subscribers to fund the operations.
Deloitte, the accountancy firm, remains on the brink to take over the private equity-owned business. Setanta’s business model was in doubt of being viable since February, which was when they lost the rights to air 46 live English Premier League football matches, from August 2010 they will only show 23 games per season, which compared to BSkyB’s 115 games. This has lead to concerns from the broadcaster that thousands of subscribers will desert the channel in favour of its competition.
If Setanta is to go into administration, then it would see more than 1,000 jobs being lost in the UK and Ireland. However BSkyB’s shares rose 3 per cent amid speculation that the group could benefit from a rescue deal.