IRISH FINANCIER Barry Maloney stepped down from the board of troubled broadcaster Setanta Sports yesterday to avoid a potential conflict of interest relating to a proposed £20 million investment in the Dublin-based pay TV group by wealthy industrialist Len Blavatnik.
Mr Maloney is a lead partner with venture capital group Balderton Capital, which owns more than 20 per cent of Setanta.
Balderton is also an investor in Top Up TV, a UK group controlled by Mr Blavatnik’s holding company Access Industries, which is the entity seeking to invest on his behalf in Setanta.
Mr Maloney said he wanted to avoid any potential conflict that these investments might create.
“I decided that it was the right thing for me to do and the right thing for the company [Setanta],” Mr Maloney told The Irish Times.
It is understood that Access Industries has proposed appointing David Chance, the founder of Top Up TV, to the Setanta board as its representative should a deal be agreed.
Setanta’s executives are this week seeking to tie down the investment by Mr Blavatnik, in addition to another £30 million in funding from other investors, including existing shareholders.
The deal with Mr Blavatnik, which would give him 51 per cent of the business, was agreed last Thursday but is subject to due diligence being completed this week.
A revised business plan has yet to be agreed and sources have indicated that a successful conclusion of negotiations with Mr Blavatnik’s group is not certain.
A deadline of Friday has been set to close a deal with Access Industries. This is the same day that Setanta is required to make a £10 million payment to the Premier League in England as the latest instalment for its rights.
The Premier League yesterday invited rival broadcasters to bid for Setanta’s rights to show live games next season.
In a statement issued yesterday, the Premier League said: “Although the Premier League would like to provide Setanta with as much time as possible to re-arrange its finances, the start of the 2009/10 season is only two months away, with the release of fixtures imminent.
“Accordingly, the Premier League has notified Setanta that if necessary the existing licence agreement between us will be terminated, coming into effect if Setanta does not meet certain contractual requirements of the Premier League on or before Friday, June 19th, 2009.”
The league said it has issued an “invitation to tender” to other broadcasters for the 46 Premier League games next season to be broadcast in the UK. Bidders could include BSkyB, controlled by Rupert Murdoch, and ESPN, owned by Disney.
Setanta also holds the rights to show 79 Premier League games in Ireland. The tender relates to the UK rights only.
Setanta said: “Given the speed of events and Access’ offer being subject to due diligence it is not unexpected that the Premier League would offer Setanta’s TV rights for tender as a contingency measure.”
