Setanta Sports have gone into administration, and with the loss of 200+ jobs in the UK, along with 1.2million subscribers left out in the 'cold'. Setanta has been running at a loss of about £100m a year, after missing subscriber targets. The broadcaster has (or had...) 1.2 million customers, 700,000 short of the 1.9 million that industry experts believe they need to break even. Setanta had also missed a £3 million payment to the SPL,which was extended to allow them time to find the money but it was unable to pay the Premier League £10 million following the collapse of a potential rescue deal with US tycoon Len Blavatnik's Access Industries.
The English FA were 12 months into a four-year deal worth £150m with Setanta Sports along with terrestrial TV here in England, for the rights to the England matches in the World Cup qualifying matches and now that they (Setanta) have now 'ceased trading' in Great Britain. It begs the question.. who will buy the rights for the sports coverage that they, Setanta, covered. They paid over the top for the English Premier League as it was anyway, in a bid to get a foothold in the UK with football and as such Setanta's have now gone into administration, they have appointed Deloitte to oversee administration, and this has left the Football Association seeking new rights deals for matches valued at £100m for Englands matches, they will not make a loss, but their income from any new deal(s) may be considerably lower. Setanta were due to show England's home friendlies and the Community Shield, as well as some England Under-21 and FA Cup games over the next three years.
The Scottish Premier League is now negotiating with broadcasters who are interested in taking on Setanta's four-year £125m deal which is due to start in 2010, also Setanta has contracts to show Blue Square Premier football, cricket's Indian Premier League, golf's US PGA Tour, rugby union's Guinness Premiership and Australian rugby league.
A lot of sports is now off the table for people who subscribed to Setanta Sports, it seems that Sky, among others will be getting new customers in the very near future. Sky, however cannot have both football packages
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 came just 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 on Monday by the Scottish Premier League that it was ditching Setanta and looking for another television partner.
Setanta missed a £3 million payment to the SPL. It was unable to pay the Premier League £10 million following the collapse of a potential rescue deal with US tycoon Len Blavatnik's Access Industries.
So when will ESPN advertise on TV in GB to promote their newly aquired aquisition, the English Premier League?
No doubt people in the USA who want to watch the EPL will be happy, now they have a 'direct feed' from the UK for their 'weekly fix' of football (soccer to you)