Soccer:While the future of Setanta Ireland remains in the balance the sports broadcaster reaffirmed its sponsorship commitment to the cross-border Setanta Sports Cup on the basis the company can "secure the future of their Irish operation".
The Setanta Sports Cup organising committee today met with participating clubs to discuss issues surrounding the future of the competition’s sponsorship.
The issue arose after Setanta Sports ceased broadcasting after going into administration but Irish founders Leonard Ryan and Michael O’Rourke along with concert promoter Denis Desmond are currently in talks with secured lenders in a bid to ensure the survival of Setanta Ireland.
Today’s statement from the FAI said: “The broadcaster has written to the organising committee outlining their intention to secure the future of their Irish operation. They also underlined that they are positively disposed to the Setanta Sports Cup.
“Setanta Sports has made a commitment to remain in close contact with the organising committee while they endeavour to secure their Irish operation.
“The Setanta Sports Cup organising committee, the FAI and the IFA will continue working closely with Setanta Sports during this process. Clubs were understanding of the situation and will be kept informed of developments.”
It appears the fate of Setanta Ireland lies in the hands of secured lenders, who provided the broadcaster’s failed parent company – Setanta Sport Holdings – with €225 million in payment-in-kind (PIK) loan notes. These include Goldman Sachs.
It is understood that Ryan, O’Rourke and Desmond were hoping for some breathing space – possibly three to four weeks – to keep the Irish channel on air while they put together the finance to acquire the company. This could involve a payment by the three executives to meet the Irish group’s running costs in the short term.
Setanta Ireland is believed to be burning about €300,000 a week, and the lenders want either to agree a quick sale or close the business to prevent a further drain on finances.
