Setanta is turning away new subscribers

Jun 11 2009 by Iain Laing, The Journal

CRISIS-HIT pay-television firm Setanta has suspended all new customer subscriptions as the fate of the company hangs in the balance.

The cash-strapped Irish firm is seeking to stave off administration with a last-minute rescue and is trying to raise fresh funds from investors, although sources close to the company say it is still reviewing all options.

A statement on its website said: “The company has not gone into administration. All our channels are still broadcasting across all platforms and our subscribers can continue to enjoy our programming.

“However, in the current circumstances, we have decided to suspend temporarily the acceptance of new subscriptions.”

Setanta has TV rights including the FA Cup, World Cup qualifiers, Premier League, Scottish Premier League, and the Blue Square Conference but is struggling to pay for them due to its low number of customers.

The firm has been looking to reduce its rights bills, raise cash from investors or even sell a stake in itself to another company, but Deloitte has been lined up as administrator if the rescue efforts fail.

Talks are under way between founders Leonard Ryan and Michael O’Rourke and its backers, private equity firms Doughty Hanson and Balderton Capital, as well as Goldman Sachs.

Setanta suffered a fresh blow this morning as BT Vision suspended any further sales of Setanta Sports.

The home digital TV service said: “We are closely monitoring the situation with regard to the current position of Setanta Sports.

“As a precaution we have currently suspended any further sales of Setanta Sports from this morning.”

It emerged on Tuesday that BSkyB had refused a £50m lifeline to the Irish pay-TV broadcaster who are in crisis with a payment of more than £30m due to the Premier League this week and backers refusing to advance them any more money.

Some Scottish Premier League clubs could be forced out of business if Setanta goes into administration, according to former Hearts chairman Lord Foulkes.

Another broadcaster, ESPN, is favourite to step in and take over Setanta’s Premier League games if the company goes into administration.

The Premier League should not be too badly affected should Setanta go into administration as they have only won one of the six live broadcast packages for 2010 to 2013.

But the Football Association, which has a £150m deal for England and FA Cup games with Setanta, and the Scottish Premier League have more significant problems, even though much cash has been paid in advance.