Cash-strapped Setanta at risk of administration

Cash-strapped sports broadcaster Setanta could be forced into administration this week after failing to make payments due on television rights, according to reports yesterday.

Deloitte are on stand-by to act as administrator for the firm unless they agree a last-minute rescue with their investors.

The Irish firm, who televised England's 4-0 World Cup qualifying win away to Kazakhstan on Saturday afternoon, are reportedly struggling to pay cash owed to football associations under their rights deals.

Setanta – for whom no one was available for comment yesterday – has about 1.2 million customers but this is well below the 1.9 million subscribers they need to break even.

If the company fails to cut their rights payments or raise more cash from investors and fall into administration, it could trigger a fire-sale of television rights, including the England national team's away qualifiers and some FA Cup matches.

ITV and Setanta won the contract from the Football Association in 2007 before the recession hit, impacting on advertising revenues.

The FA are said to have rebuffed attempts by Setanta to reduce their £150m share of the £425m four-year deal by 25 per cent.

Setanta also have rights to screen matches from the Premier League, who are awaiting a £35m payment later this month, according to yesterday's reports.

Last week they failed to pay the £3m owed to the Scottish Premier League under the final instalment of this season's TV deal, and have until tomorrow to come up with the cash.

They have also been seeking to cut the price of their current £125m deal with the SPL, who have agreed to pay the £3m outstanding from funds to their 12 member clubs to ease the financial pressure.

The founders of the business, Irishmen Michael O'Rourke and Leonard Ryan, set up Setanta in 1990.

Life and Style
love + sex
Life and Style
Tikka Masala has been overtaken by Jalfrezi as the nation's most popular curry
food + drink
News
people
Voices
A propaganda video shows Isis forces near Tikrit
voicesAdam Walker: The Koran has violent passages, but it also has others that explicitly tells us how to interpret them
Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot
Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

Poldark star Heida Reed

'I don't think a single bodice gets ripped'
The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn