Setanta Issues

It’s pretty much well known that Setanta Sports are struggling financially at the moment and according to the BBC are on the brink of collapse. Setanta apparently owe £30m to the Premier League and have already failed to make a £3m payment to the Scottish FA for its rights to the SPL highlights. The Irish broadcaster cover some of the Premier League, as well as games from Germany, Scotland and France as well as other sports such as Golf, Boxing and Cricket. If the company goes into administration then Deliotte will step in and run the firm temporarily.

Obviously the financial issues Setanta currently have could have an affect on the Blue Square Premier if the company goes into administration. Apparently some club’s in the Blue Square Premier have already budgeted the Setanta TV money coming in for next season’s budget and if the money doesn’t come in then there could be a similar situation to what happened to the league clubs a few years ago when ITV Digital collapsed.

“It’s going to affect the whole league and maybe the bigger clubs as much as the lesser ones. Until we get the full details we don’t know just how much it will affect us.” Rushden boss Justin Edinburgh on the Setanta problems

Rushden and Oxford are just a few of the clubs in the BSP that have apparently budgeted for the annual TV payment of £70,000. Cambridge United chairman George Rolls confirmed on Sky News yesterday evening that they haven’t budgeted the money as they knew half way through last season that a possible Setanta collapse could happen.

“Fortunately we average about 3,700 fans and we’re one of the bigger sides in non-league football, but I’m sure that some of the other clubs that have budgeted for it will struggle to pay their bills. Luckily for us, we’re not one of them so our fans can rest safely in the knowledge that Cambridge United FC will not be troubled if Setanta go into administration.” Rolls on Setanta

It’s good that Cambridge have budgeted not to have the Setanta payment this season, otherwise that could of been the end for them for good, knowing they are going to have to cut costs anyway this season after over spending in their push to get promoted last season. U’s manager Gary Brabin has already been told by the club’s board that he will have to sell before extending contracts of players such as Daryl McMahon and Phil Bolland. That hasn’t stopped them signing Jai Reason from Ipswich though.

It’s unknown what affect the Setanta financial problems will have on Stevenage. The club is in a pretty good financial position from what I hear and the FA Trophy run and Wembley final will have enchanced the club’s playing budget for next season. Boro are also lucky to have good off the field income steams which are still working well and season ticket sales are doing well going into next season. Away from the club, Phil Wallace and Graham Westley are well known to have successful businesses and I’m sure if the club was struggling financially then there would be finance available to cover any losses?

If Setanta does collapse then it could prove to be an interesting few months ahead for the clubs in the BSP. If the company does go bankrupt, then it is bound to affect club’s plans for pre-season. Playing budgets will be cut and teams who are less financially stable could find themselves in administration themselves and a 10 point deduction over their heads before a ball is even kicked. I’m sure that Stevenage will be ok financially, even if they have budgeted the TV money for this year, but that could mean a few more players leaving the club in the next few weeks that Westley may have seen as back-up. Should be an interesting few weeks…

UPDATE: New Eastbourne striker Liam Marum rejected the chance to join Stevenage when he left Woking last month according to this article.