More like this
Setanta Sports declares bankruptcy
The ailing broadcaster is forced to seek protection from its creditors after debts rack up and a buyer fails to emerge
After teetering on the brink for some time, Setanta has now gone into administration and finally ceased its operations in the UK. A blank screen greets viewers and the company has stopped taking subscriptions from customers, although Setanta Ireland and Setanta International are continuing to trade. The group had 1.2m subscribers in the UK, 700,000 short of the number required to break even. Overseas it broadcasts to another 200,000.
Chairman Sir Robin Miller said "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."
The company had debts of about £300m and its collapse will see 200 staff lose their jobs after the most likely buyer, US billionaire Len Blavatnik, withdrew his offer to buy a 51 per cent stake for £20m.
The focus will now turn to who will buy the company’s rights to sporting events such as the Scottish Premier League, English FA Cup matches and IPL cricket. On Monday Disney-owned ESPN bought the rights to the 46 Premier League games Setanta owned for next season as well as the 23 games for the following three years.
WHAT THEY ARE SAYING
Sean Williams, managing director of strategy at BT Retail, on BBC: "Competition in pay TV in the UK is not working effectively. This gives rise to significant harm to consumers in the form of higher prices, restricted choice and diminished innovation."
Toby Syfret, analyst at Enders Analysis, in the Independent: "People just didn't see a future for it, and thought it would suck up too much money. The basic problem was they didn't get enough subscribers to make the business model work." ·
Comments are now closed on this article
Comments
It's just the UK rights that have gone to shot. Canada is in the safe because the joint venture with Rogers is a different deal, so you can still continue to watch the Premier League and loads of other sports that's in their line up. International (which includes the US, Canada, Australia, S.Africa) did not go under with UK. International is still going strong.
I live in Canada and have watched the international Setanta for the Barclays premier league games, but now that they have lost them it not worth the $14 a month subcription so they will lose a lot of the International subscribers as well look for them to go under completely.