Setanta loses Premier League contract
Updated on 19 June 2009
The future of troubled sports broadcaster Setanta has been thrown into doubt as rescue negotiations have failed and a key football contract has been cancelled.
A potential deal with US tycoon Len Blavatnik's Access Industries, thought to be worth £20 million in return for a 51 per cent stake in the broadcaster, collapsed after "a number of issues" were not resolved in time, the investor said.
The news comes as a further blow for Setanta, which has lost its licence to broadcast 46 Premier League football matches next season after failing to meet "certain contractual obligations".
An Access Industries spokesman said: "Access believed that this proposal could potentially 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.
"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."
The Premier League had given Setanta a deadline of Friday to meet demands relating to the final season of its £392 million three-year deal.
It had already launched an emergency tender of the matches, which are for the 2009/10 season, and they will now go ahead with the sale.
In a statement, the Premier League said: "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."
Setanta said in a statement: "The board of Setanta notes the statement issued earlier today by the Premier League and will consider its options over the weekend. In the meantime, Setanta's sports channels continue on air."
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