Originally Posted by The Times Online

Setanta came close to falling into administration this morning, but the embattled sports broadcaster was able to negotiate last minute breathing space to ensure it would survive in the short term.

The reprieve, however, was not due to the emergence of a rescue plan, and Setanta remains on the verge of collapse as shareholders battle over whether the loss-making business could be made viable.

A source close to the negotiations between Setanta and its private equity owners, Balderton Capital and Doughty Hanson, said the company’s survival “hung in the balance.” Setanta’s future would be decided “in a matter of days rather than weeks,” the source said.

The Irish company, led by new chairman Sir Robin Miller, is understood to have raised nearly £50 million to fund its operations, well short of the £100 million it was seeking.
Setanta's board met, amid talk of a split between its principal shareholders Balderton Capital and Doughty Hanson over whether to stump up another £50 million to secure the future of the company.

Football clubs around the country, and particularly in Scotland, where Setanta is the only broadcaster of Scottish Premier League games, face financial shortfalls running into the millions if Setanta's lucrative deals with the SPL, the FA and the Premier League cannot be replaced.

Deloitte, the accountancy firm, remains poised to take over the private equity-owned business, which failed to make a £3 million payment to the Scottish Premier League (SPL) last week.

The viability of Setanta’s business model was cast into doubt in February when it lost the rights to show 46 live English Premier League matches. In future it will show only 23 games per season against BSkyB’s 115, leading to concerns that thousands of subscribers will defect. BSkyB is 39.1 per cent owned by News Corporation, parent company of The Times.

Unable to pay £3 million in Scotland, Setanta faces bigger financial hurdles later this month, when a reported £40 million payment to the Premier League falls due.
The broadcaster showed England’s World Cup qualifier on Saturday, but that may be the last time Setanta is involved. A shared deal with ITV saw it secure rights for England and FA Cup matches for £425million.

Setanta, co-founded by Irishmen Leonard Ryan and Michael O'Rourke, which also shows cricket and PGA Golf, has about 1.2 million customers but needs nearer 1.9 million to break even and is losing £90 million a year, according to analysts.