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Setanta in crisis talks with Premier League as cash dries up.

Satellite broadcaster Setanta is seeking to defer a £60million payment due to the Premier League this month and may consider requesting a reduction in its rights fees.

The broadcaster is understood to be facing a potential cash-flow crisis and is hoping to renegotiate its payment schedule. Talks between League chief executive Richard Scudamore and the broadcaster are understood to have taken place this week.

Setanta currently has a £392 million three-year contract to show two packages of live Premier League games, with the money payable in six equal instalments over the course of the contract. Setanta met its January payment in full but there are now concerns over whether it can meet the May instalment.

The uncertainty arises as a result of Setanta's failure to retain both packages of Premier League games in the auction for 2010-13 rights. The defeat has prompted a review of the business.

Setanta is thought to be attempting to defer as many payments as possible to refinance and seek new lines of credit.

In March Setanta was late with a scheduled £10 million payment to the Football Association, prompting fears that it might not be able to fulfil its numerous contracts across UK and international sport.

It eventually made the payment to the FA, but its negotiations with the Premier League could cause fresh concerns. The Premier League is Setanta's most important partner and its biggest creditor, and should it fail to meet its obligations to them then other sports and governing bodies will fear the worst.

Setanta has already held talks with other rights holders including the Scottish Premier League, with whom it has a four-year deal worth £125 million. The broadcaster has been said to be seeking a reduction of as much as 20 per cent in that fee but the SPL will resist any such move unless it receives guarantees that there will be no further calls for cuts.

http://www.telegraph.co.uk/sport/fo...lks-with-Premier-League-as-cash-dries-up.html
 

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A while ago there was an article posted about Setanta apparently struggling financially. They paid too much for the broadcasting rights of all their sport, and didn't have enough subscribers (short by an expected amount of about at least half a million people) for it to be worthwhile.

I can't say I'm really surprised though. They're quite a costly channel, and their coverage isn't great. The SPL will feel the financial side more because of the fact they don't get a lot anyway but nobody else is covering it.

It doesn't look good for them at all though, and I think that the broadcasting rights they won might be up for grabs again (though I'm not totally sure what would happen there.)
 

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Setanta

Billionaire saves Setanta from collapse | Premier League - Times Online

British football can carry on spending after a deal was agreed to save Setanta Sports last night that should mean clubs and governing bodies continuing to pocket hundreds of millions of pounds in television revenue from the broadcaster.

Access Industries, a company run by Len Blavatnik, a billionaire businessman, will pay £20 million for a 51 per cent stake in Setanta to help it to avoid administration.

Setanta’s football rights include the FA Cup, World Cup qualifiers, the Barclays Premier League, the Clydesdale Bank Premier League and the Blue Square Premier.

Setanta’s three-year, £392 million deal with the Premier League to show 46 live matches a season expires after 2009-10. The broadcaster paid £159 million to screen 23 games annually for three years from 2010-11. Setanta ran into financial trouble when it lost half its Premier League live games, leading to fears of a mass exodus of subscribers. The crisis evoked memories of the collapse of ITV Digital in 2002, when the operator went under owing Football League clubs £180 million.

The Premier League is due a £30 million payment but is understood to be willing to wait while the rescue is finalised. Under the terms of ITV’s deal, it would gain the rights to eight England friendlies until 2012 if Setanta went under, which seems unlikely.

Setanta has already failed to pay the Scottish Premier League £3 million it is owed. Setanta closed itself to new subscribers on Wednesday but once the deal has gone through it is expected to continue selling subscription packages via Freeview and Sky. It has about 1.2 million subscribers but needs closer to 1.9 million to break even.

ESPN, which is thought to be eager to break into the market for live rights, distanced itself this week from suggestions that it could take over Setanta’s Premier League games if the company went into administration.

Blavatnik is a Russia-born American citizen who has invested in Russian oil. He also backs TopUp TV, which operates pay television on Freeview, has a stake in Sport 5, an Israeli channel, and a stake in Perform Group, a digital sports rights business with clients including the Premier League and some of its clubs. Other investors are expected to come forward to help Setanta to become profitable in future years.
 

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I hope they go bust tbh.

The subscription fee of £12 per month is ridiculously high considering last season I only watched 5 football matches on Setanta (United aways and England games) and you have to pay extra per box in the house if you have Sky Multiroom. I'm also p***** off that I'm being forced to pay for Liverpool and Arsenal TV as part of my subscription.

With MUTV at least its on every box in the house for a flat fee of £6 per month and I watch it daily.
 

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People hoping they go bust - you do know this will send hundreds of clubs in Scotland and the Conference in England into turmoil?

I hope they survive just for this.
no ....... i hope they go bust ....... and they will

1. they are not going to be able to pay those clubs
2. ...... clubs had it coming to them ..... over reliance on tv money rather than making investments with their profits ........

why should we have to save clubs
 

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I've watched loads of games on Setanta, especially Setanta Ireland on a saturday afternoon when Sky can't show games. I don't subscribe to them though, I go to the pub
 

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People hoping they go bust - you do know this will send hundreds of clubs in Scotland and the Conference in England into turmoil?

I hope they survive just for this.
They overpaid for broadcasting rights and overcharged for subscription fees. It was always going to end in disaster. If other broadcasters had their more sensible bids accepted then the clubs would have budgeted accordingly. Setanta have caused a huge mess and it's the FA's and football leagues who will end up bailing the clubs out, which will take money away from grassroot level football.

I remember England fans chanting 'we hate Setanta' at fixtures being shown on their channels and even without the recession they would have struggled to attract the minimum number of subscribers required to break even.

They have made terrible business decisions and, as a subscriber, I feel ripped off at the amount of money I have paid to them.

As for the job losses why should I be bothered when they are an Irish company? I'm not particularly bothered when Spanish/French/German companies go bust so why should this be any different?
 
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