Premier League Blows Whistle On Setanta Deal

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The future of sports broadcaster Setanta has been thrown into doubt after rescue negotiations failed and a key football contract was cancelled.

A potential £20m deal with US tycoon Len Blavatnik's Access Industries collapsed after "a number of issues" were not resolved in time, the firm said.

The news came after Setanta lost its licence to broadcast 46 Premier League football matches next season after failing to meet "certain contractual obligations".

An Access Industries spokesman said: "Access believed that this proposal could potentially have secured the future of the broadcaster.

"Regrettably... there remain a number of issues which we have been unable to resolve within the time available."

The Premier League had given Setanta until Friday to meet demands relating to the final season of its £392m three-year deal.

It has been taking fresh bids for Setanta's 46 live matches for the 2009/10 season and will now go ahead with the sale.

In a statement, the Premier League said: "It is with considerable regret that we announce that Setanta has been unable to meet their obligations.

"As such the existing licence agreement between us has been terminated with immediate effect."

Setanta is attempting to stave off administration by raising funds to help pay TV rights bills, which include the FA Cup and Scottish Premier League (SPL).

The company boasts around 1.2 million subscribers - but that is way short of the reported 1.9 million it needs to break even.

It suspended new subscriptions last week, prompting fears over the future of the business.

Setanta also missed a £3m payment due to the SPL under the current deal - forcing the league to pay clubs from its own pocket - and owes £30m to the Barclays Premier League.

Deloitte has been lined up as administrator if the broadcaster's survival efforts fail.

In a statement Setanta said it would "consider its options" over the weekend. "In the meantime, Setanta's sports channels continue on air."


Source: SkyNews