Money Matter$

Financial trouble suggests England’s game on Saturday may be Setanta’s last

Irish TV network is on the brink of collapse


Since they lost half of their Premier League live rights for the 2010-2011 season, Setanta Sports have been teetering closer and closer towards administration.

The Ireland-based TV network have been unable to pay a £3m bill to the Scottish Premier League, which doesn’t put them in a particularly good position to pay the impending £40m bill coming from the English Premier League. They must now rely on hefty investment from third parties or a takeover bid to stop them collapsing.

If Setanta were to become insolvent, a fire sale of all their TV rights would probably occur, meaning their grossly overvalued contracts (including the £425m one for England and FA Cup games) could fall into the hands of rivals for knock-down prices.

A surprise lifeline may actually come from big-dog rivals Sky, who have been asked to provide a £50m interest free loan in exchange for Setanta becoming part of the Sky Sports package.It may sound like a bizarre request, but it is actually in Sky’s interest to keep their weak competitor afloat, rather than letting a huge shark like ESPN into the tank. It is The Spoiler’s understanding that BSkyB will do just about anything to keep the monolith Disney-backed network out of the picture, and since Monopoly rules prevent Murdoch’s lot simply taking all of Setanta’s packages, bailing out their ailing competitor would actually make sound business sense.

While the collapse of Setanta would have negative consequences for employees and viewers (you can kiss goodbye to news bulletins from Charlotte Jackson), it may also have a devastating knock-on effect for Premier League clubs.

This week, The Guardian reported that top flight sides cumulatively owe £3.1bn in bank overdrafts, loans and other borrowings. Without the steady income of TV money they were expecting, who knows how many clubs could find themselves in trouble…

6 responses so far
  • Raph88 // June 4, 2009 at 2:56 pm

    well, the spoiler’s content just moved up a step on the quality ladder.

  • Ellsass // June 4, 2009 at 4:18 pm

    As an American I’d love for ESPN to get the rights since it’s actually on TV here. It’s difficult to get Setanta, and Fox Soccer Channel (which airs half of the games) requires a more expensive cable package. Plus it’d help push soccer over here and reduce some of the incredulous looks I get when I say I watch “that” sport.

  • Evan // June 4, 2009 at 4:55 pm

    Even if ESPN ended up buying the rights I don’t think they’d put all that much more footie on in the States. All in all…

    I just hope it’s not the end of Special1 TV :D

  • Liverpool bid for Argentinean sensation, West Ham’s new owners and Alex Curran | The Spoiler // January 12, 2012 at 6:40 pm

    [...] Wenger fears Manchester City [Football365] Since we wrote about it last week, Setanta’s financially screwed position remains unchanged [Guardian Alex [...]

  • Setanta Sports stop accepting new subscritions – are they about to fold? | The Spoiler // January 12, 2012 at 6:41 pm

    [...] The resulting deadlink suggests the ailing broadcaster is about to collapse – an outcome that was feared last week. [...]

  • Video: The final minutes of Setanta Sports News | The Spoiler // January 12, 2012 at 6:46 pm

    [...] Three weeks ago we suggested the England/ Kazakhstan game would be Setanta’s last, and yesterday our prophecy of doom finally came to pass*. As you know by now, the Irish broadcaster was the latest victim of the financial nuclear winter, as they failed to honour the payments on their hugely over-priced TV rights packages. [...]

Leave a comment
  1. View comments in RSS feed