SETANTA SPORTS edged closer to collapse yesterday after informing the Scottish Premier League (SPL) that it was not in a position to make a £3 million (€3.5 million) payment due since the beginning of this month.
The SPL yesterday withdrew the rights, which cover Britain and Ireland. A spokesman for the Glasgow-based body said it would pursue Setanta for the money, which relates to last season. “There is a legal process under way,” he confirmed.
The spokesman added that a “range of guarantees” had been given by Setanta in its contract and these would be pursued. He declined to discuss the nature of the guarantees.
In a statement, Lex Gold, executive chairman of the SPL, said: “We are now actively engaging in the process of selling our domestic broadcasting rights for next season and beyond.”
Setanta, which was founded in 1990 by Irishmen Leonard Ryan and Michael O’Rourke, has missed three deadlines for the payment of the £3 million, the latest of which was at 1pm yesterday.
Losing the SPL rights was a significant blow to Setanta given that an estimated one-third of its 1.2 million premium subscribers live in Scotland.
In 2004, Setanta signed a four-year contract with the SPL for £54.5 million. It extended this deal at the end of last year for another four seasons at a cost of £125 million. All of these rights have been revoked.
In England, meanwhile, the Premier League has awarded the rights to the two packs of live games previously held by Setanta to Disney-owned American sports channel ESPN. Setanta lost these rights on Friday after failing to make an overdue £10 million (€11.8 million) payment. The award to ESPN snuffed out any hopes that Setanta might somehow be able to regain the rights.
The loss of the Premier League games followed the collapse of negotiations on Friday with wealthy businessman Len Blavatnik, who had proposed a £20 million investment for a majority stake in the Irish business.
The board of Setanta met in London yesterday to decide the company’s future.
In a statement, the company said: “The board of Setanta Sport Holdings met this morning [Monday] to consider the future of the business. Talks are continuing. A further statement will be issued in due course.”
Speculation mounted late yesterday that the broadcaster could be placed into administration today. Accounting firm Deloitte has been on standby to assume this role for a number of weeks.
In another signal of Setanta’s current difficulties, the FAI and Irish Football Association have cancelled Thursday’s draw for the Setanta Sports Cup, an All-Ireland football tournament that was founded in recent seasons on the back of the broadcaster’s backing.
“This draw has been postponed at the request of Setanta Sports to give the company an opportunity to gain clarity around a number of market-related issues it currently faces,” a joint statement from the Irish football associations said.
Hopes were expressed last night that the Irish and international businesses could be saved.
A customer message on the website of Setanta Sports USA said the loss of Premier League rights in England last week did not affect the American channel.
“Setanta Sports in the US is a separate operation that has separate agreement to show the Premier League,” it stated. “Our channels and other services in the US continue to broadcast.”
The Irish channel, which is profitable and employs 200 staff, has a separate shareholder structure.
Music promoter Denis Desmond owns 20 per cent of the Irish business and has said he would be prepared to participate in a rescue of this company.
