Setanta facing administration as BSkyB talks collapse

Irish pay-TV sports broadcaster Setanta is on the brink of administration after BSkyB refused to provide a £50 million lifeline.

BSkyB’s chief executive, Jeremy Darroch, said that they had been “talking to Setanta, and trying to work with them and help them”, however, an agreement was not reached.

BSkyB was also reported to say it was “a broadcaster not a bank”.

Emergency talks have been taking place this week with the company’s founders, Leonard Ryan and Michael O’Rourke, who are striving to fight off administration by trying to secure finance to keep the firm up and running.

The company has told its employees that their jobs are safe for now.

In the meantime, US sports broadcaster ESPN is favourite to step in and take over Setanta’s rights to the Premier League. ESPN has been expanding its presence in Europe of late but has been silent about its investment plan.

Setanta, which broadcasts football, cricket, golf and rugby union, has more than 1 million subscribers. However, according to analysts, this is only about two-thirds of the number it needs and as a result the company is facing losses of up to £100 million a year.

Deloitte is on standby should the firm enter administration.

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