Two of the major shareholders in the struggling satellite sports broadcaster Setanta have written down the value of their holdings to zero.
Both Goldman Sachs and Doughty Hanson have devalued their holdings, which together work out at around twenty five of the entire shares available to the market.
However this will not affect the true value of the business, as it is considered a mere accounting technicality.
The problems started for Setanta when it lost half of its premier league football matches to sports broadcaster Sky Sports.
Since this deal Setanta’s management has been trying to change the contract with the FA but to no avail.
It seems that the broadcaster is in a tricky situation.
It is committed to the FA and other sporting organisations, yet its advertising revenues have fallen, and with the loss of prime Premier League matches, subscriptions are likely to reduce accordingly.