Setanta board taking stock after losing contract
Updated on 20 June 2009
The board of troubled broadcaster Setanta is "considering its options" after a rescue bid failed and the pay-TV firm lost a key football contract.
Talks over a possible deal with US tycoon Len Blavatnik - thought to be worth £20 million - collapsed after "a number of issues" could not be resolved in time.
Setanta had been given a deadline of Friday to meet demands relating to the final season of its £392 million three-year deal.
But the failure to meet "certain contractual obligations" means Setanta has now lost its licence to broadcast 46 Premier League matches next season.
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."
The broadcaster released a statement in response, saying: "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."
The Premier League had already launched an emergency tender of the 46 matches, which are for the 2009/10 season, and they will now go ahead with the sale.
It had been hoped Mr Blavatnik could prove a white knight for the Irish firm, which started taking new subscriptions again this week on hopes of a rescue.
Setanta is trying to stave off administration by raising funds to help pay TV rights bills, which include the FA Cup and Scottish Premier League.
The firm has about 1.2 million subscribers - but that is still well short of the reported 1.9 million it needs to break even.
Deloitte has been lined up as administrator if the broadcaster's survival efforts fail.
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