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Premier League

Setanta Receives Reprieve as ?35m Payment Deadline is Extended

Strategic Insights

— 1 min read

Beleauguered sports broadcaster Setanta Sports has secured a reprieve from one of its rights holders, with a ?35m payment to the English Premier League (EPL) deadline extended. The company, which has been struggling to stay afloat, is also in talks with BSkyB to potentially offer its services as part of a package of channels to Sky subscribers. Setanta's negotiations with the EPL and BSkyB come as the company faces significant financial challenges, including a deadline to raise ?100m from existing or new investors.

Key Takeaways:

  • Setanta Sports has received an extension on its ?35m payment deadline to the English Premier League (EPL).
  • The company is in talks with BSkyB to potentially offer its services as part of a package of channels to Sky subscribers.
  • Setanta's new management team is tasked with raising ?100m from existing or new investors.
  • Existing shareholders include TV3 owner Doughty Hanson and Barry Maloney's Balderton Capital.
  • Setanta's business model is under review, and the company is at risk of losing its premium subscribers.
  • Setanta was late with a ?10m payment to the English Football Association just a few weeks ago.
  • The company has renegotiated its contract with the Scottish Premier League, reducing the annual payment and length of contract.
  • Privately, some clubs believe a reduced deal may be better than none at all, and have expressed a willingness to ensure the broadcaster stays afloat.
  • The US PGA tour has also agreed to cut contracts.

Statistics:

  • Setanta paid ?159m in February for the rights to 23 games for three years from 2010.
  • The company's four-year ?125m agreement with the Scottish Premier League is set to begin in the 2010/2011 season.
  • Setanta is expected to raise ?100m from existing or new investors.
  • The company's deadline to raise the funds is not specified in the article.

Sources:

  • "Setanta wins reprieve as ?35m payment deadline is extended"
  • Sources are not explicitly provided in the original text.

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