UFC TV Partner Setanta Entering Crucial Juncture
May 4, 2009
The Independent of Ireland has the update on the status of UK broadcaster Setanta Sport, whose negotiations with the English Premier League may decide the fate of the UFC”s TV partner in the UK:
EMBATTLED sports broadcaster Setanta Sports is holding crisis talks with the English Premier League, the outcome of which could decide the future of the company.
Setanta, which is struggling to survive after the loss of some of its Premier League rights, has entered into emergency funding talks to raise up to £100m (€112m) from shareholders this month….
In order to buy time and ease its immediate cash flow, the company has also opened negotiations with the Premier League over deferring or reducing a £60m (€67m) instalment due on its current £392m (€440m) deal this month.
Sources close to the company believe that the attitude of the Premier League to Setanta’s request will be crucial to the survival of the company….Other rights holders who are effectively behind the Premier League in the queue for Setanta’s fees will be watching on.
The fallout from this for the UFC may be the outright collapse of their TV partner in the UK or at the very least a possible reduction or deferment in the rights fee they receive from Setanta. While the UFC has turned the corner to profitability on their UK shows, it is a lean operation and a rights reduction fee could adversely impact the bottom line on these shows. The collapse and bankruptcy of Setanta could put the UFC back on the market, but at a time when rights fees will be down sharply. If the rights do go back on the market the two best options would be satellite giant Sky or the former home of UFC programming Bravo network. The best scenario for the UFC would be the EPL acquiescing to Setanta’s requests and riding out a possible rights reduction until there is an uptick in the economy. The UFC is said to be supportive of Setanta in their talks and may not be adverse to their own renegotiation.
