Setanta Sports founders Michael O’Rourke and Leonard Ryan have found an international backer that could help them secure the future of the Dublin-based pay TV sports broadcaster.
Mr O’Rourke and Mr Ryan will put an offer for a majority stake in the cash-strapped business to the company’s directors at a board meeting in London today.
This offer is backed by a major international group and will involve an investment of about £50 million (€58.7 million) in the company.
This will result in Mr O’Rourke, Mr Ryan and their backer taking a majority stake in the business.
If accepted, other shareholders, including private equity firms Balderton Capital and Doughty Hanson, which owns TV3, would have their holdings in the Irish firm diluted.
A deal would also secure about 450 jobs at the broadcaster, including about 200 in Ireland.
Setanta, which is loss-making, urgently needs an injection of cash to prevent the company from slipping into administration.
Mr O’Rourke and Mr Ryan have worked around the clock this week to secure a rescue package to save the company they founded in 1990.
Accounting firm Deloitte was placed on standby to act as administrator to the business if new investment could not be secured.
Setanta has committed close to £1 billion in recent years to secure live rights to top sports including Premier League football and the FA Cup in England, the Scottish Premier League (SPL), PGA golf in the US, Uefa Champions League football and Formula One motor racing.
Earlier this month, Setanta missed a £3 million payment due to the SPL. It was reportedly due to make a £35 million payment to the Premier League in England this week.
Its difficulties began in February when Setanta lost one of its Premier League live rights packages to Sky. This means it will only be able to show 23 live games from August 2010 for three seasons.
In parallel with seeking new investment, Setanta has sought to renegotiate its various rights deals with rights holders. It is believed to have sought discounts of up to 25 per cent from rights holders. The firm has sought to trim other costs within the business in a bid to put the company on a footing to reach breakeven.
Failure to agree a deal today could push the company towards administration. This would result in its rights reverting to the various sporting bodies and could result in Setanta being broken up.
