Digital TV News

Setanta Sports enters administration

Tuesday 23 June, 2009

becca.talbot@consumerchoices.co.uk

Struggling Irish sports broadcaster Setanta has been put into administration following the collapse of its business in Britain.

Setanta Sports (www.setanta.com) will soon cease to broadcast in the UK after administrators confirmed the broadcaster’s debt-ridden British arm could not be rescued.

Deloitte will take control of the administration, and the business is expected to be wound up, at a loss of 200 jobs and some £450million of shareholders’ money.

Neville Kahn, one of the joint administrators, 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.”

“This decision means that it will shortly cease broadcasting to its customers in Great Britain,” added Kahn. “However the International and Ireland businesses continue to trade on air whilst we are in discussions with parties to take these businesses on as going concerns.”

The move was expected following the Premier League’s decision to remove Setanta’s rights to air 46 of next season’s live matches.

Disney-owned American sport broadcaster ESPN successfully won the rights to show these matches, and the company has confirmed it will be airing them on all available platforms, including Sky - owned by BSkyB, who was also bidding for the matches.

Setanta Sports, which has 1.2 million customers, also shows the Scottish Premier League, the Blue Square Premiership, cricket’s Indian Premier League and the golf PGA tour. The future of these broadcasts is unclear.

It is also uncertain what will happen to Setanta subscribers with Virgin Media and BT Vision, however yesterday BT Vision confirmed it had suspended sales of Setanta Sports.

However, Setanta Sports has confirmed that no further monthly subscriptions or direct debits will be accepted from customers of the UK business.

Michael Phillips, product director at DigitalChoices.co.uk said: “The key driving force for Setanta in the UK was its Premiership rights so with that now under ESPN ownership, it’s not surprising that the administrators have moved in so swiftly.”

“It’s likely that broadcasting will cease very quickly so customers receiving Setanta Sports through Virgin Media or BT Vision should speak directly to their provider to understand what refunds or alternative channel packages might be available to them,” advised Phillips.

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