Time running out for Setanta rescue package
Updated on 10 June 2009
Time appears to be running out for Setanta, after BSkyB refused the stricken pay-TV broadcaster a £50 million lifeline.
The Irish firm is said to be in a state of financial meltdown, with a £30 million payment due to the Premier League this week and backers refusing to advance any more money.
Another emergency board meeting to try to stave off administration took place on Tuesday night, with directors considering a last-ditch rescue package.
Setanta had asked Sky for £50 million in return for access to the live rights to 46 Premier League games next season.
Sky's chief executive Jeremy Darroch insisted he had no wish to see Setanta go under, but firmly rejected the offer.
"At the end of the day we are not a bank," he said. "We are a broadcaster, not a supplier of working capital to a business and rights holder."
Setanta has suspended subscriptions for new customers. Internet applicants have been flashed a message saying "Oops! Something has gone wrong" while telephone customers were told subscriptions were unavailable due to a "technical problem".
The broadcaster ESPN has emerged as the favourite to step in and take over Setanta's Premier League games if it goes into administration.
The Premier League is not expected to be very seriously affected. Setanta has only one of the six live broadcast packages for 2010 to 2013.
But the Football Association, which has a £150 million deal for England and FA Cup games with Setanta, and the Scottish Premier League, have more significant problems.
Under a pre-arranged deal, ITV would take over the rights to up to eight England away friendlies for a pre-agreed sum.
Scottish Football Association chief executive Gordon Smith has admitted he is concerned about the situation.
Setanta failed to pay the final instalment of this season's TV deal last week, leaving the SPL to dip into its own coffers to distribute around £3 million to its 12 member clubs.
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