Irish-run broadcaster Setanta's UK division files for bankruptcy

200 jobs to go as ESPN purchases rights to Premier League games

Irish-run broadcaster Setanta's UK division filed for bankruptcy protection Tuesday, while ESPN have purchased the rights to broadcast English Premier League in the UK for the 2009/2010 season.

Setanta released a statement Tuesday saying that the UK division of the company was going into administration, but the Irish and international branches would continue to function as normal.

"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,” said Deloitte’s Neville Khan, whose company is handing the administration process.

"This is a sad day for all concerned,’ said Setanta chairman Robin Miller.”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 (the company's) survival."

Around 200 jobs are expected to be lost as a result of the announcement.

Setanta lost the rights to show both the English Premier League (EPL) and Scottish Premier League (SPL) games in the UK market when they failed to make payments of £10 million ($16.5 million) and £3 million ($5 million) to each respective league.

At one point it looked like the company might be rescued by a £20 million ($33 million) investment from American businessman Leonard Blavatnik, but the billionaire investor pulled out of the deal to purchase a 51 percent share of the company when negotiations broke down.

The following day, the EPL announced that time was up for Setanta and rights to the 46-game package were up for tender. Things got worse when the SPL told Setanta that failure to hold up their financial obligations meant that it had also lost that contract.

Given that 400,000 of the channel’s 1.2 million subscribers came from Scotland, this was another huge blow to the ailing company.

Developments over the past few days do not affect Setanta customers in the United States.  The company posted the following message on its U.S. Web site today:

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Nster.com