DUBLIN-BASED Setanta Sports could be placed into administration today by its directors, who will meet in London to decide the troubled pay-TV company’s future.
This follows a dramatic end to last week for Setanta, which saw the firm lose its rights on Friday to 46 live Premier League games in the UK for the 2009/10 season. This followed a missed payment of £10 million (€12 million) by Setanta to the league.
A proposed £20 million investment by wealthy industrialist Len Blavatnik also collapsed on Friday.
Accounting firm Deloitte has been lined up to act as administrator to Setanta Sport Holdings Ltd (SSH), the broadcaster’s main trading company.
SSH employs about 430 people, including 200 in Dublin, who work for Setanta Sports Ireland.
The Irish business is profitable and there are hopes that it and Setanta’s international businesses can be rescued. The company has interests in Australia, Canada and the United States.
About €50 million is believed to have been invested by Setanta’s backers in the Irish business in recent years.
Music promoter Denis Desmond, who owns 20 per cent of Setanta Sports Ireland, told The Irish Times yesterday that he hoped the business here could be saved and said he was willing to participate in any rescue.
“The hope would be very much to keep Ireland going,” Mr Desmond said. “There’s no reason, in my opinion, why Ireland can’t continue as a going concern but it all depends on what happens in the UK.
“It’s down to what happens tomorrow [Monday] but we’re all keen for to continue. We’ll look at what’s possible.”
Mr Desmond said he would be willing to invest more money in Setanta’s Irish business.
Setanta Sports Ireland has a separate shareholding structure – SSH owns 80 per cent with Mr Desmond holding the balance.
It is understood that a profit of about €500,000 had been projected for the Irish business for 2009. The channel is carried as part of the basic packs of cable TV providers NTL and Chorus, a lucrative deal that gives it access to about 600,000 households.
A number of the sports rights held by Setanta Sports Ireland are for this market only and do not apply to the UK. This includes the Magners League rugby, Formula 1 motor racing, the Uefa Champions League and Gaelic games.
Rights to the Premier League in England and the Scottish Premier League were held by its parent group.
Latest accounts for Setanta Sports Channel Ireland show it made an operating loss of €13 million on turnover of €26 million in 2007.
However, revenues are believed to have risen substantially since then and the company is now operating in the black.
If Setanta is placed into administration, the Irish business will fall under the control of Deloitte. The Irish channel held rights to 79 live Premier League games in England for the coming season.
This comprised mirror rights for the 46 matches that Setanta secured for Britain and 33 games that it could broadcast in Ireland only on Saturday afternoons. The Irish rights are expected to be put up for grabs in the next fortnight.
