Setanta Execs Continue Crisis Talks, Suspend New Subscriptions
Setanta execs "will continue crisis talks today," and it is believed that co-Founders Michael O'Rourke and Leonard Ryan are "now considering selling Setanta's US and Irish operations, possibly to" Irish music promoter Denis Desmond, who has a 20% stake in Setanta Ireland, according to Mostrous & Sabbagh of the LONDON TIMES. Setanta has "suspended all new customer subscriptions as it tries to organise" a $164.2M (all figures US) rescue package, but investors "have so far refused to put up more than" $82.1M. The sale of the company's int'l assets "could plug the funding gap in time for Setanta to pay a critical instalment of around" $49.3M to the EPL on Monday. But sources said that "no offers to rescue Setanta have yet been received by the broadcaster." Mostrous & Sabbagh note "many of Setanta's international channels, which focus on showing British sport to the expat community, are profitable," and one industry source said the U.S. and Irish businesses could be "worth a few hundred million" (LONDON TIMES, 6/11). In London, Nick Clark reports Setanta yesterday "took the extreme step of paying staff at two-week rather than monthly intervals, 'to reassure' them as uncertainty grew." A Setanta source said that the "issue was 'clearly not yet fixed' but stressed it had not fallen into administration." Setanta yesterday posted a message on its Web site, reading, "In the current circumstances, we have decided to suspend temporarily the acceptance of new subscriptions. ... Setanta Sports management is in the process of attempting to secure the future of the business" (London INDEPENDENT, 6/11). Meanwhile, Setanta Canada said that the "meltdown of Setanta U.K. has no effect on business" in Canada, as the company is a "separate entity" (THESTAR.com, 6/10).
BRAND BUILDING: BRAND REPUBLIC's Kate Nettleton reports Setanta "has called a pitch to find an advertising agency to relaunch the brand, should it ward off the impending threat of administration." Setanta lined up Beattie McGuinness Bungay, Miles Calcraft Briginshaw Duffy and incumbent Big Al's Creative Emporium "to pitch for the business this Friday, but the contest has been temporarily put on hold while Setanta attempts to secure a last-minute rescue package" (BRANDREPUBLIC.com, 6/11).
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After Long Competition, Sky Gains
Upper Hand In Sports Broadcasting |
LEND A HELPING HAND: In Manchester, Lawrence Donegan notes Setanta "for the past few years has been in heavy competition against Sky to gain the upper hand in the world of sports broadcasting." But Setanta "has lost, Sky is triumphant." Donegan: "The battle is over. Yet why does this feel like one of the worst days for sport in a long, long time?" Even if Setanta "has only itself [to] blame," the company's collapse "will have serious consequences for sport" in the U.K. There "won't be a happy ending" to the quest of England's Football Association (FA) to "find a deal equal to the one it stands to lose." Donegan: "But there should be, and here is how it can happen. Sky and the Premier League should step in and make it so. They are both rich enough, they have both taken so much from football in recent years that the time has come for them to give back: to the FA, to the [Scottish Premier League] and, yes, even to Setanta" (GUARDIAN.co.uk, 6/11).
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