SETANTA ON BRINK

A Dub in Glasgo

A Dub in Glasgo wrote: »

You mean those backers were idiots for not throwing their money away?

No not really.
If they had bought the packages they could have increased their subsciber numbers over the next couple of years which is exactly the plan.They were starting to do ok.

Setanta as op said needed 1.8 million subscribers,the plan was to operate on a managable loss for a few year steadily increasing subscribers until they started making a yearly profit,not buying the premier league packages ruined this and sent the company into freefall.

If they had bought the packages then their subscriber numbers would have kept going up.

leninbenjamin

Aadhya Spicy Economist wrote: »

If they had bought the packages then their subscriber numbers would have kept going up.

this is where we differ. i don't think they were going up at enough of a rate to suggest holding onto the matches were a worthwhile investment.

besides, you can only operate at a loss for so long, particularly in the current fincancial crises.

A Dub in Glasgo

Headshot wrote: »

maybe setanta should concentrate on other sports and leave the soccer to sky

Setanta were OK when they had the soccer from Scotland. It is really only the EPL that caused problems (for me) with Setanta. The EC would not allow Sky have a monopoly on the rights for the EPL.

A Dub in Glasgo

Aadhya Spicy Economist wrote: »

No not really.
If they had bought the packages they could have increased their subsciber numbers over the next couple of years which is exactly the plan.They were starting to do ok.

Setanta as op said needed 1.8 million subscribers,the plan was to operate on a managable loss for a few year steadily increasing subscribers until they started making a yearly profit,not buying the premier league packages ruined this and sent the company into freefall.

If they had bought the packages then their subscriber numbers would have kept going up.

They were only needing the 1.8m subscriber base because they paid loads of money in the first place.

leninbenjamin

leninbenjamin wrote: »

this is where we differ. i don't think they were going up at enough of a rate to suggest holding onto the matches were a worthwhile investment.

besides, you can only operate at a loss for so long, particularly in the current fincancial crises.

Yeah thats a good point but do you not agree that by not buying the packages the investors basically put the final nail in setantas coffin?

If they company go under,which they look like they will then the investors have lost alot of money.

If they had increased the amount of packages people would have soon started to subscribe because sky wouldnt show them.
I suppose they just didnt want to take the risk but they only have themselves to blame now hat their investment has gone tits up.

Guy:Incognito

What happens to the rights should Setanta fold? If SKy are the only bidders is the monopoly rule abandoned or could the likes of BBC pick them up for buttons?

Mitch Connor

ESPN or Disney will pick up the rights if Setanta drop 'em.

Mossy Monk

Mitch Connor wrote: »

ESPN or Disney will pick up the rights if Setanta drop 'em.

ESPN are owned by Disney

mikemac

Earlier this week I see Setanta advertising their package.
79 Premier League games, SPL games and possibly Europa League coverage.
Sign up now the ad stated!!!

And all this time they are in financial trouble and failed to make payments to SPL clubs.

Even if they survive this will damage them badly.
Remember Smart Telecom. They had huge difficulty selling their services for years and years because because people assumed they had gone bust.
Which a division of the company did

Hank Scorpio

Pat Dolan should bring a packed lunch instead and the company would be saved

homer simpson

Honestly i would be sad to see it go. I'm getting it half price for 18 months (the power of a little complaining) but i think the varity of sports they show is second to none! More importantly the varity of irish sports rugby soccer,and motorsports.

Headshot

http://www.examiner.ie/business/setanta-could-face-administration-93598.html

CASH-strapped sports broadcaster Setanta could be forced into administration this week after failing to make payments due on TV rights, according to reports.

Deloitte are on stand-by to act as administrator for the firm unless it agrees a last-minute rescue with their investors, the reports said.

The Irish firm, which televised England’s 4-0 World Cup qualifying win away to Kazakhstan on Saturday, is struggling to pay cash owed to football associations.

Setanta – which was unavailable for comment – has about 1.2 million customers, but this is well below the 1.9 million they need to break even, according to the Sunday Times.

If the company fails to cut its rights payments, or raise more cash from investors and fall into administration, it could trigger a firesale of TV rights, including the England national team’s away qualifiers and FA Cup matches.

ITV and Setanta won the contract from the Football Association in 2007 before the recession hit, impacting on advertising revenues.

The FA are said to have rebuffed attempts by Setanta to reduce their £150 million (€171m) share of the £425m four-year deal by 25%.

Setanta also has rights to screen matches from the Premier League, which is awaiting a £35m payment later this month, the reports claimed.

Last week it failed to pay £3m owed to the Scottish Premier League under the final instalment of this season’s TV deal, and has until today to come up with the cash. It has also been seeking to cut the price of its current £125m deal with the SPL, which has agreed to pay the £3m outstanding from funds to their 12 member clubs to ease the financial pressure.

Irishmen Michael O’Rourke and Leonard Ryan set up Setanta in 1990. Deloitte was unavailable for comment.