Setanta Sports - Guardian Media: Setanta goes off air with loss of more than 200 jobs

Story from Guardian Media:

Irish pay-TV company Setanta has today been placed into administration after rescue talks designed to secure new funding collapsed.
Accountancy firm Deloitte has confirmed it has been appointed as administrator for the UK part of the business, which employs about 200 staff. 

They will now be made redundant. Setanta Sports News, the company's joint venture with Virgin Media, which is produced by ITN and employs about 60 additional staff, ceased broadcasting at 6pm today.

The broadcaster's other wholly owned channels, including Setanta Sports 1 and 2, went off air around the same time.

However, horse racing television channel Racing UK today said it would become a stand-alone channel again following the demise of Setanta.

The service teamed up with the Irish sports broadcaster in 2006 to offer a combined package of sports channels.

Racing UK said its subscription rate would now revert to its 2004 launch price of £20 a month.

It said it also aimed to continue broadcasting on Sky channel 432, but would move to a new EPG number if necessary.

The pay-TV operator has suspended the collection of subscription payments from customers in the UK with immediate effect.

"We can confirm that no further monthly subscriptions or direct debits will be accepted from customers of the UK business," said Deloitte's Neville Khan, one of the partners appointed to carry out the process.

The company will continue trading and Setanta Ireland and Setanta International are not covered by the appointment, Deloitte added.

After an agreement with US billionaire Leonard Blavatnik, who was in talks to buy a majority stake in the business, collapsed, Setanta's founders were thought to be focusing on trying to rescue its Irish and north American operations, which are believed to make a modest profit.

Those talks are continuing, according to Khan. "The International and Ireland businesses continue to trade on air whilst we are in discussions with parties to take on those businesses as going concerns," he said.

Three Deloitte partners – Kahn, Lee Manning and Nick Edwards – have been appointed joint administrators to Setanta Sport Limited and Setanta Transmissions (UK) Limited.

David Carson, of Deloitte in Ireland, was appointed Receiver to Setanta Sport Holdings Limited, Setanta Media Holdings Limited, Setanta Media Limited and Setanta Sport (PPV) Limited.

Setanta has 420 employees in the UK and Ireland, and approximately 1.2 million subscribers, with channels available in three million homes.

Neville Kahn said: "After a huge effort by the Setanta board, management team and its backers, it has not been possible to save the GB business, which will be wound down in due course."

Setanta confirmed the appointment of Deloitte as its administrator.

In a statement, the company said: "Existing investors were prepared to commit substantial additional funds to the business, subject to improvements in its operating performance. Setanta sought to make significant reductions in its cost base by measures that included renegotiating its agreements with commercial partners and rights holders.

"Although progress was made, the improvements achieved were insufficient to ensure that the business could become profit-making."

Sir Robin Miller, chairman of Setanta, added: "This is a sad day for all concerned. Since its inspired inception a number of years ago, Setanta and its financial backers, have invested hundreds of millions of pounds buying UK and international sports rights. With the hard work and dedication of its staff, a pay-TV broadcaster was created which entertained people in three million homes with top-class sport.

"Unfortunately, in a difficult and highly competitive market, and despite strenuous efforts by the board and management, it has not been possible to find sufficient additional funds in the time available to ensure its survival."

ITN won a three-year contract to produce the content for Setanta Sports News, which is jointly owned by Setanta Sports and Virgin Media, in September 2007.

The deal saw the creation of about 60 jobs at ITN's central London headquarters and the expansion of its newsroom.

Racing UK chairman Will Wyatt said: "We enjoyed a good relationship with Setanta since August 2006, and the current situation at Setanta is very unfortunate. Racing UK flourished as a stand-alone channel before Setanta, and now we have a stronger financial base and an even better relationship with our customers. Racing UK is sound, safe and assured of its future."

Racing UK said it would shortly be in contact with its 55,000 residential subscribers about how to re-subscribe directly and until then would be free to air.

All current broadband subscriptions and the 2,350 pubs which subscribe to Racing UK will be unaffected.

The channel is in discussions with Virgin Media to continue supplying cable customers.

A spokesperson for ITN said: "We are extremely disappointed by the news that Setanta has today gone into administration and will cease trading. As a consequence, Setanta Sports News shut down transmission at 6pm today.

"Over the past 18 months, SSN successfully established itself as a highly-competitive sports news alternative with a loyal and growing audience.

"Thanks to the dedication of a hugely talented team, the channel consistently generated a lively, engaging schedule popular with sports fans across the country.

"We will be consulting with affected staff about the implications of today's decision and, where possible, we will seek to redeploy people within ITN."

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