Setanta, ITV Reportedly Seek To Restructure FA Broadcast Deals
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Setanta And ITV Looking To Renegotiate
Contracts For Football Association Broadcasts |
Setanta and ITV are looking to renegotiate contracts worth US$596.7M for England's Football Association (FA) broadcast rights "in response to major financial pressures," according to Paul Kelso of the London TELEGRAPH. Setanta yesterday reportedly "delayed making a scheduled payment on their [US$210.6M] contract," though a network source "insisted they would continue to meet their commitments." Setanta was scheduled to make a payment of more than US$14.0M, but Setanta officials have "withheld the money as they attempt to renegotiate the terms of their deal." Meanwhile, ITV reportedly is "seeking to reschedule payments" on its US$386.0M deal as the company seeks to "address a short-term cash-flow problem." ITV is understood to have "met all scheduled instalments so far," but the company is "seeking to smooth the payment schedule, which is front-loaded to the opening years of the deal." ITV sources stressed that they have "met all their payments to date and remain committed to their deal with the FA." Kelso notes the news that both Setanta and ITV are "actively seeking to renegotiate their contracts will raise fears about the financial position" of the FA, but the organization has rejected such concerns and "will resist attempts to reschedule payments" (London TELEGRAPH, 3/3). The FINANCIAL TIMES' Ben Fenton reported ITV "has already undergone a round of redundancies in which staff levels were cut by 1,000," and a "second 'efficiency' review is expected to end with up to 500 staff losing their jobs." Meanwhile, at Channel Five "as many as 100 out of 350 staff are under threat, with an announcement also due this week" (FINANCIAL TIMES, 3/2).
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