UK channels switched off by cash-hit broadcaster

Jun 24 2009 by Iain Laing, The Journal

SETANTA'S UK channels shut down last night after it called in administrators. The Irish firm – which has been hit by the loss of football television rights in England and Scotland – went off-air just before 6pm.

Viewers were met with a message saying that the firm had “ceased trading in Great Britain”. The wind-down of Setanta’s British business, which has 420 staff, will mean 200 job losses.

Setanta’s international and Ireland businesses continue to trade while talks with possible buyers are under way, administrator Deloitte said.

Setanta, which has 1.2 million subscribers, has suspended the collection of subscription payments from customers in the UK.

Administrator Neville Kahn said: “After a huge effort by the Setanta board, management team and its backers, it has not been possible to save the GB business, which will be wound down in due course.”

The move comes 24 hours after the Premier League handed Setanta’s football rights – containing 46 matches for the 2009/10 season and 23 matches per season from 2010/11 to 2012/13 – to US broadcaster ESPN.

News of the Premier League’s sale followed an announcement by the Scottish Premier League that it was ditching Setanta and looking for another television partner. Setanta missed a £3m payment to the SPL and failed to meet a deadline for a £10m payment to the Premier League last week – prompting the auction.

It was unable to pay the Premier League following the collapse of a potential rescue deal with US tycoon Len Blavatnik’s Access Industries.

Setanta’s backers – private equity firms Doughty Hanson and Balderton Capital, and Goldman Sachs – were “prepared to commit substantial additional funds” to the business, in return for an improved performance, the firm said.

But despite progress in renegotiating rights agreements it was not enough to return the firm to profit.

Setanta chairman Sir Robin Miller said it was “a sad day for all concerned”. He said: “Setanta and its financial backers have invested hundreds of millions of pounds buying UK and international sports rights. With the hard work and dedication of its staff, a pay-TV broadcaster was created which entertained people in three million homes with top-class sport.

“Unfortunately, in a difficult and highly competitive market, and despite strenuous efforts by the board and management, it has not been possible to find sufficient additional funds in the time available to ensure its survival.”

Setanta still holds the rights to the FA Cup, some England matches, US PGA golf and, from next year, Guinness Premiership rugby.