Setanta Sports is in last-ditch talks with an unidentified white knight rescuer, in an attempt to stave off a collapse of the broadcaster that could otherwise come as soon as tomorrow.
The company has received what it described as “major interest” from an unnamed “very credible organisation”. It is understood that this is neither ESPN, the US sports broadcaster, nor al-Jazeera.
Setanta must make a payment of about £30 million to the Premier League today. However, it is widely believed that it has not got the funds to make the payment unless a rescue goes through. If the money does not come through, the League is theoretically able to demand that Setanta be wound up from next week. The company would then fall into administration. Deloitte is on hand to take over.
A separate effort, led by Leonard Ryan and Michael O’Rourke, the company’s Dublin-based founders, to raise money from wealthy Irish individuals has not succeeded, leaving Setanta several million short of the £100 million needed to secure its future.
The collapse of Setanta, which has suspended all new customer subscriptions as it battles to organise the rescue package, would leave British sport needing to plug a £500 million-plus black hole, with football and rugby union clubs at risk of having their incomes cut.
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ESPN, owned by Walt Disney, ruled itself out of a rescue takeover of Setanta Sports, although it is still believed to be interested in buying football rights should the Irish sports group collapse.
The American company, which has been repeatedly linked to a takeover, as Setanta’s problems deepened said that it wanted to set the record straight. A spokesman said: “We have no plans to buy Setanta.”
While ESPN refused to say whether it would bid for Premier League broadcasting rights if they became available, the American company would be expected to see if it could take on British football for the first time.
ESPN bid unsuccessfully against Setanta and Sky for Premier League rights this year and, given its size in America, has long been touted as an eventual entrant into the British market. It has always acted cautiously and so far has failed to bid enough to win rights.