Setanta Sports

Setanta Sports Channel Ireland Limited
Limited company
Industry Sports broadcasting
Founded Dublin, Ireland (1990)
Headquarters Dublin, Ireland
Area served
 Ireland
Northern Ireland
Asia
Turkey
Owner Gaiety Investments (60%)
Danu Partners (40%)
Website www.setanta.com

Setanta Sports (/sɛˈtɑːntə/) is an international sports broadcaster based in Dublin, Ireland. Setanta Sports was formed in 1990 to facilitate the broadcasting of Irish sporting events. The channel operates individual channels in Ireland, Northern Ireland, Asia and Turkey

Ownership

In July 2009, the ownership structure of Setanta Sports Channel Ireland Limited (previously Setanta Sports Ireland Ltd) changed. Setanta Sports Channel Ireland Limited is co-owned by Gaiety Investments (60% share) with the remaining 40% share made up by Danu Partners Limited. The main shareholders in Danu are Michael O'Rourke, Leonard Ryan, and Mark O'Meara. Danu purchased 100% of the shares in Setanta Sports North America Limited which was disposed of in early 2010. Setanta Sports Channel Ireland Limited is licensed by the Broadcasting Authority of Ireland.

The Setanta business in Ireland has managed to survive despite the difficulties with Setanta GB. Colin Morgan, formerly CEO of Quinn Direct Insurance, joined the Setanta Ireland business in October 2010.

Availability

Setanta Sports offers commercial venues in several countries around the world programming of sports such as football (soccer), Gaelic football, hurling, golf, cricket, Australian rules football, boxing, NHL ice hockey and rugby union and league.

Channels

Ireland

Northern Ireland

Asia

CIS

Turkey

Previous operations

Australia

As of August 2014 both Setanta Sports Australia and Setanta Sports Plus were sold to Al Jazeera Media Network with approval sought from regulators in Australia.[1] The channel became BeIN Sports Australia in November, 2014.

Africa

Setanta operated Setanta Sports and Setanta Action until October 2013 when the channels were acquired by 21st Century Fox. In July 2014, Fox announced that from August 2014 the channels would be rebranded Fox Sports and Fox Sports 2.[2]

Great Britain

Setanta GB operated Setanta Sports 1 & 2 and Setanta Golf within Great Britain. Under a joint venture with Virgin Media, it operated Setanta Sports News. Setanta GB also operated Arsenal TV, Celtic TV, LFC TV and Rangers TV with their respective clubs. Setanta GB went into administration on 22 June 2009, and at 18:00 most of its channels ceased operations within Great Britain.[3]

Arsenal TV continued until August 2009 while Arsenal explored alternative options.[4] Liverpool FC assumed responsibility for LFC TV and decided to continue broadcasting as normal.[5]

United States of America

Setanta Sports previously broadcast in the United States with Setanta Sports USA from 2005 to 2010. Fox Sports purchased the network's programming rights out of bankruptcy, adding them to Fox Soccer Channel's existing schedule and that on of a new network, Fox Soccer Channel.[6]

Canada

Setanta Sports previously operated a version of the channel in Canada as a joint venture with Canadian media company Rogers Communications (Setanta itself owned 20% of the network). However, its minority stake was acquired by Rogers in July 2011 and the channel was re-aligned as part of its Sportsnet networks, and become Sportsnet World on 3 October 2011.[7] The re-launch would also come alongside an overall re-branding of the Sportsnet networks.[8]

Other business

Criticism

Just as when Sky Sports, in the 1990s, first obtained the exclusive rights to screen live coverage of the England national football team's away qualifying matches for the World Cup, so Setanta attracted similar criticism as a result of it having obtained the same contract. Whereas Sky often sold on a highlights package to a terrestrial broadcaster (BBC), Setanta indicated that the sums offered by terrestrial broadcasters, reported to be £100,000 to £200,000, were five to ten times lower than their perceived market value; Setanta paid £5 million to screen England's away qualifier with Croatia on 10 September 2008 and believed a sensible highlights package should attract a fee of £1 million.[9] Thus, no highlights package was agreed, and Setanta themselves showed highlights of both England and Scotland qualifiers free-to-air after the live games had concluded. This was announced at 18:00 on the day the matches took place, and received 220,000 viewers.[10] Setanta then accepted "a low, six-figure deal" with ITV to show delayed "extended highlights" a few days later.[10]

Setanta's GB subscriber numbers were lower than those of Sky Sports, and the number of households watching the match live was estimated at around 1.5 million. Because of the availability of Setanta on both digital satellite and digital terrestrial television, the theoretical possible subscriber base surpassed that of Sky Sports (not available via DTT at the time) but fans who were unwilling to subscribe could not see the match live. British Prime Minister at the time Gordon Brown indicated he felt it "unfortunate" more fans could not see the match live for free.

Cancellation issues

Setanta GB also received significant criticism of its cancellation policy, with the issue investigated by the BBC's Watchdog programme and Radio 5 Live.[11] While customers were able to subscribe either on-line or over the telephone, many customers found it "nigh-on impossible to cancel" the service, with the only means of a cancellation being to inform the company in writing.[12]

Because of the amount of negative feedback received, Setanta GB eventually changed this to allow for cancellations to be done through email. Furthermore, while customers were originally entered into a 30-day notice period once their cancellation letter was received, this was increased to 60 days without any information being sent to customers; again, because of the negative feedback, this was quickly reduced back to 30 days.[12] These customer service issues were compounded by the fact that customers had to phone a premium rate number should they have any issues to resolve, with calls costing at least 10 pence per minute.[13]

Financial difficulties and Setanta GB administration

Reports on 7 June 2009 suggested that Setanta could be forced into administration that week[14] after failing to make payments due on TV rights. Because of late payment and renegotiation over fees by Setanta to football clubs, several British football clubs were put into financial difficulties as money promised had been spent in annual budgets. On 4 June 2009, the Scottish Premier League announced they would be paying the sums that some of the clubs were owed to avoid causing them financial problems.[15]

On 19 June 2009, Setanta Sports failed to pay the latest instalment of £30 million (€35 million) it owed the English Premier League. The Premier League had to sell the rights to the 46 live matches Setanta had for the 2009/10 season. A Premier League spokesman said, "It is with considerable regret that we announce that Setanta has been unable to meet their obligations. As such the existing licence agreement between us has been terminated with immediate effect."[16][17]

Following this, the Daily Mail reported that a rescue deal had failed.[18] Two days later, it was reported on RTÉ News that the original Setanta Sports channel Setanta Ireland might be bought out by an existing consortium who already hold interests in Setanta Sport Holdings Ltd the Irish arm of Setanta Sports. Setanta Sports Ireland and Setanta Sports North America were the only brands which made a profit in 2008.[19] The same day, Setanta lost all their SPL TV rights because they were unable to pay the £3m (€3.5m) owed to the league.[20] Following this, it was announced that ESPN had bought the rights to show the 46 Premier League games bought by Setanta next season.[21] Setanta GB went into administration following failure to make payments to a number of sporting organisations. About 200 employees were made redundant. The administration was handled by Deloitte.[22]

According to the final report published by Setanta's administrator Deloitte, released in July 2010, the broadcaster had outstanding bank loans of UK£261m and unsecured debt of UK£288m.[23] Deloitte said that unsecured lenders received just 2p for every pound that they have claimed back from the defunct operator.

Reaction in Great Britain

On 21 June 2009, BT Vision stopped selling Setanta Sports.[24] Disney's ESPN won the rights to broadcasting the Premier League matches forfeited by Setanta[25] for the 2009/10 season.[26][27] 430 jobs, 200 of which were in Ireland, were expected to be lost as a result of its going into administration.[28]

Recovery

Setanta made a strong recovery in Ireland since the adversity in Great Britain, continuing its resurrection by employing a further 50 employees in February 2010.[29] The Setanta Ireland channel is available to entire UPC base as a basic channel in Ireland, around 1.3 million homes but actually in about 530,000. Setanta also has operations in Canada, Australia and Asia.[30]

In June 2013 it was announced that Setanta Sports will carry the new BT Sport channels as part of its overall sports package for Irish viewers. The deal will add 38 live Premier League games to its TV package and bring to 71 the total number of top-flight English matches on offer to Irish subscribers for the next three years.[31]

High definition TV

In September 2010, Setanta Ireland announced that it would be Ireland's first indigenous channel to broadcast in HD.[32] The service launched in February 2011.[33] The Dublin v Armagh Gaelic football encounter on 5 February 2011 was Ireland's first broadcast of Gaelic Games in high definition.[34]

See also

References

  1. ↑ http://www.irishtimes.com/business/sectors/media-and-marketing/setanta-sports-australia-set-to-be-sold-to-al-jazeera-1.1897079
  2. ↑ http://foxinternationalchannels.com/press/fox-sports-launches-two-new-sports-channels-in-africa
  3. ↑ "Important Customer Message". Setanta Sports. 23 June 2009. Retrieved 24 June 2013.
  4. ↑ "Arsenal FC statement regarding Arsenal TV". Arsenal FC. 24 June 2009.
  5. ↑ "Liverpool FC: TV channel to continue". Digital Spy. 23 June 2009.
  6. ↑ Reynolds, Mike (27 January 2010). "Setanta Sports USA To Go Dark Feb. 28". Multichannel. Retrieved 24 June 2013.
  7. ↑ Krashinsky, Susan. "Rogers builds Sportsnet brand with soccer station". The Globe and Mail (Phillip Crawley). Retrieved 27 July 2011.
  8. ↑ Krashinsky, Susan. "Sportsnet drops the 'Rogers' and gains a whole new look". The Globe and Mail (Phillip Crawley).
  9. ↑ Interview, Victoria Derbyshire (programme), BBC Radio 5 Live, 10–11 September 2008
  10. ↑ 10.0 10.1 ITV to show England-Croatia highlights after striking Setanta deal, TheGuardian.com, 11 September 2008; Retrieved 12 September 2008
  11. ↑ Victoria Derbyshire (10 September 2008). "I've fallen out of love with the England team, you've fallen out of love with Setanta". 5 live – Victoria Derbyshire's Blog. BBC. Retrieved 23 June 2009.
  12. ↑ 12.0 12.1 Lou Birt – Programme Editor (21 January 2009). "The Setanta situation". 5 live – Victoria Derbyshire's Blog. BBC. Retrieved 23 June 2009.
  13. ↑ "Contact Us". Setanta. 14 November 2008. Retrieved 23 June 2009.
  14. ↑ "Setanta 'on brink of administration'". STV News. 7 June 2009.
  15. ↑ "SPL pays up in lieu of TV money". BBC News. 5 June 2009. Retrieved 23 June 2009.
  16. ↑ "Setanta loses Premier TV rights". BBC News. 19 June 2009.
  17. ↑ "Deadline looms for Setanta rights". BBC News. 21 June 2009.
  18. ↑ Sale, Charles (20 June 2009). "Setanta bust! FA face £100m crisis after TV company is forced to pull the plug". Mail Online (Associated Newspapers). Retrieved 21 June 2009.
  19. ↑ "ESPN snaps up Premier League rights". RTÉ News. 22 June 2009. Retrieved 23 June 2009.
  20. ↑ "SPL statement on Setanta". Scottish Premier League. 22 June 2009.
  21. ↑ "ESPN buys rights to Setanta games". BBC News. 22 June 2009.
  22. ↑ "Setanta goes into administration". BBC News. 23 June 2009. Retrieved 23 June 2009.
  23. ↑ "Sports broadcaster Setanta collapsed with £550m debts". City AM. 12 July 2010.
  24. ↑ BT Vision stops selling Setanta BBC News, 21 June 2009
  25. ↑ Setanta loses Premier League contract after failing to repay debt Times Online 19 June 2009 (subscription required)
  26. ↑ ESPN buys rights to Setanta games, BBC Sport, 22 June 2009
  27. ↑ Setanta collapses could cost Premier League clubs £30m The Guardian.com, 18 June 2009
  28. ↑ Setanta goes into administration, BBC News, 23 June 2009
  29. ↑ Setanta to add 50 to workforce Irish Examiner, 24 February 2010
  30. ↑ Setanta set to broadcast top-class sport on new Asia station Independent.ie, 24 February 2010
  31. ↑ "Setanta Sports adds BT Sport Channels to line-up". IFTN.ie. 25 June 2013. Retrieved 25 June 2013.
  32. ↑ Setanta becomes first Irish channnel to go HD TechTV101 Ireland, 17 September 2010
  33. ↑ GAA goes HD for the very first time on Setanta GAA.ie, 31 January 2011
  34. ↑ Setanta to broadcast GAA matches in HD Business and Leadership, 1 February 2011

External links