Setanta maybe going bust this week

nexuss

Numerous local report suggest that today (Monday) is likely to be crunch day for Irish pay-TV sports broadcaster Setanta. Now the talk is of formal administration, one step from full bankruptcy.

Setanta has appointed liquidation specialists Deloitte to examine all options. Top of the list is payment of £3m that should have been paid to the Scottish Premier League last week. Last day for the £3m cheque to land on the SPL’s doormat is today. The SPL has itself made a distribution payment to its own clubs, which means it is wholly out of pocket if Setanta defaults on its obligations.

Next up is a £35m instalment due to be paid to the English Premier League on June 15. There are also other significant contract obligations, not least to transmission operators Globecast and Arqiva.

Setanta, which launched itself as a rival to BSkyB in 2003, has struggled to make its numbers, and reportedly not helped now by a tougher approach to cash-flow from major funders Doughty Hanson. Setanta is said to need at least a £100m immediate injection to see it through this winter – but the problems are compounded given that its soccer offering is reduced. Existing shareholders are pressing for a major rights re-negotiations with the soccer leagues in particular. They, in fairness, are duty bound to get the best possible terms for their member clubs, and if Setanta ends up in formal administration then the rights may revert to Setanta’s rivals.

The ‘usual suspects’ are reportedly in discussions over rescue terms for Setanta, but players like Disney’s ESPN have already looked closely at Setanta’s books and walked away. Of course, today’s picture might be very different for ESPN and the asking price might be very much lower. BSkyB, meanwhile is quietly waiting on the touchline, looking to pick up fresh soccer rights to help consolidate its own position.

stugib

Won't be missed!

spikescot2005

It will be the only time i get a decent picture if the channel gets closed down. Customer service is awful.

nexuss

Beware if they try snatch more money from you before they go bust.

spikescot2005

Already cancelled the direct debit although they say they never received the letter sent to inform them of the request to cancel. Funny that!

hollydays

Frequently accidentally called SATANta on here..

666

LinasPilibaitisisbatman

Sky and other broadcasters will likely bail them out in return for the pickings of the rights.

Already suggestions ESPN are happy to bail them out in return for some sort of deal on broadcasting rights.

el_gringo_3

As a customer who has it on a virgin 'package' i've not had to deal with their supposedly awful customer services, but I'm at a loss as to why Setantas so hated apart from this? I much prefer their coverage to Sky's, but then again I don't support any of the 'big four'.

DCFC79

el_gringo wrote: »

As a customer who has it on a virgin 'package' i've not had to deal with their supposedly awful customer services, but I'm at a loss as to why Setantas so hated apart from this? I much prefer their coverage to Sky's, but then again I don't support any of the 'big four'.

i think its the customer service, the fact its hard very hard to cancel subscriptions

BFG_2

DCFC79 wrote: »

... its hard very hard to cancel subscriptions

never had dealings with them, but surley it's a matter of simply canceling the direct debit with your bank [and sending Setanta an email to tell them that's what you've done?]

mattwallisuk

Got Setanta for free with my Virgin package, football coverage is generally poor.