What is the future for Setanta?


February 12, 2009

Following the results of the Premier League bidding war between new boy Setanta and the established campaigner BSkyB, the future of Setanta is being questioned.

The loss of one package to Sky Sports has left Setanta with just one package of live matches, which means a loss of revenues through pay TV customers and through advertising too.

Setanta is seeking additional finance of £159 million to buy the package they lost, or to at least come to some agreement with Sky Sports over showing additional matches.

Setanta currently has around 1.5 million customers, while the number needed for it to break-even is estimated at around 1.8 million subscribers, which is not a good sign for the broadcaster.

Should Setanta manage to secure some refinancing the whole situation will be different as they do have Premier League games to show, along with other top sporting events.






 

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