Jasmeet_87
19th June, 2009, 06:55 PM
Troubled sports broadcaster Setanta has failed to pay the latest chunk of the ?30m it owes the English Premier League, and will now lose the rights.
The League has threatened to sell the rights to the 46 live matches Setanta has for the 2009/2010 season if the broadcaster failed to make the payment.
It will now put the rights out to auction, with offers needed by Monday.
Setanta has recently struggled to make its payments to the sporting bodies from which it buys television rights.
'Regret'
The Premier League said it had "been working with Setanta for some time to help them continue as the broadcaster of 46 UK live matches for the 2009/10 season".
The Premier League, in agreement with Setanta, stipulated that certain contractual requirements had to be met on or before Friday, 19 June, "to allow the preparations for the 2009/10 season to continue unaffected".
The league added: "It is with considerable regret that we announce that Setanta has been unable to meet their obligations. As such the existing licence agreement between us has been terminated with immediate effect."
The Premier League will now go ahead and auction the 46 UK live matches for the 2009/10 season.
Due diligence
Setanta is running at an estimated loss of ?100m a year, after missing subscriber targets.
Earlier this week Setanta reopened its website to new subscribers - having closed it for several days.
Late last week, Access Industries, controlled by the US investor Len Blavatnik, tabled a ?20m bid for a 51% share in Setanta.
He and other investors had been carrying out intense "due diligence" - examination of Setanta's books - which was completed on Friday.
However Access has now said it was unable to proceed with a deal with Setanta.
'Issues'
"Access believed that this proposal could potenitally have secured the future of the broadcaster for its customers, employees and for football, provided certain conditions required to put the business on a long-term viable footing were met," it said.
"Regrettably, despite intensive efforts on all sides over the past few days, and despite significant progress in a number of areas, there remain a number of issues which we have been unable to resolve within the time available.
"We are disappointed not to have been able to make this deal happen. Access remains committed to sports programming and will continue to explore opportunities in this area."
One of those which may be interest in acquiring Setanta's 46 games is Disney-owned sports channel ESPN.
'Bad news'
ESPN would not comment directly on the new situation but said it continued "to be interested in rights where they are available and where they make business sense".
Meanwhile James Pickles, editor of industry newsletter TV Sports Markets, said that until Thursday there were expectations that Setanta would pull though.
"It's bad news for everyone - no one is a winner," he said, adding: "It's a disaster for rights holders."
He said it was bad news for Sky because having a competitor such as Setanta was beneficial to it from an EU regulatory perspective, which prevents one broadcaster owning all Premier League rights.
However Sky would be legally free to bid for one of Setanta's two packages of 23 games.
BBC NEWS | Business | Setanta loses Premier TV rights (http://news.bbc.co.uk/1/hi/business/8109954.stm)
The League has threatened to sell the rights to the 46 live matches Setanta has for the 2009/2010 season if the broadcaster failed to make the payment.
It will now put the rights out to auction, with offers needed by Monday.
Setanta has recently struggled to make its payments to the sporting bodies from which it buys television rights.
'Regret'
The Premier League said it had "been working with Setanta for some time to help them continue as the broadcaster of 46 UK live matches for the 2009/10 season".
The Premier League, in agreement with Setanta, stipulated that certain contractual requirements had to be met on or before Friday, 19 June, "to allow the preparations for the 2009/10 season to continue unaffected".
The league added: "It is with considerable regret that we announce that Setanta has been unable to meet their obligations. As such the existing licence agreement between us has been terminated with immediate effect."
The Premier League will now go ahead and auction the 46 UK live matches for the 2009/10 season.
Due diligence
Setanta is running at an estimated loss of ?100m a year, after missing subscriber targets.
Earlier this week Setanta reopened its website to new subscribers - having closed it for several days.
Late last week, Access Industries, controlled by the US investor Len Blavatnik, tabled a ?20m bid for a 51% share in Setanta.
He and other investors had been carrying out intense "due diligence" - examination of Setanta's books - which was completed on Friday.
However Access has now said it was unable to proceed with a deal with Setanta.
'Issues'
"Access believed that this proposal could potenitally have secured the future of the broadcaster for its customers, employees and for football, provided certain conditions required to put the business on a long-term viable footing were met," it said.
"Regrettably, despite intensive efforts on all sides over the past few days, and despite significant progress in a number of areas, there remain a number of issues which we have been unable to resolve within the time available.
"We are disappointed not to have been able to make this deal happen. Access remains committed to sports programming and will continue to explore opportunities in this area."
One of those which may be interest in acquiring Setanta's 46 games is Disney-owned sports channel ESPN.
'Bad news'
ESPN would not comment directly on the new situation but said it continued "to be interested in rights where they are available and where they make business sense".
Meanwhile James Pickles, editor of industry newsletter TV Sports Markets, said that until Thursday there were expectations that Setanta would pull though.
"It's bad news for everyone - no one is a winner," he said, adding: "It's a disaster for rights holders."
He said it was bad news for Sky because having a competitor such as Setanta was beneficial to it from an EU regulatory perspective, which prevents one broadcaster owning all Premier League rights.
However Sky would be legally free to bid for one of Setanta's two packages of 23 games.
BBC NEWS | Business | Setanta loses Premier TV rights (http://news.bbc.co.uk/1/hi/business/8109954.stm)