The future of troubled sports broadcaster Setanta was thrown into doubt today as rescue negotiations failed and a key football contract was cancelled.
A potential deal with US tycoon Len Blavatnik's Access Industries, thought to be worth £20 million in return for a 51 per cent stake in the broadcaster, collapsed after "a number of issues" were not resolved in time, the investor said.
The news comes as a further blow for Setanta, which today lost its licence to broadcast 46 Premier League football matches next season after failing to meet "certain contractual obligations".
An Access Industries spokesman said: "Access believed that this proposal could potentially have secured the future of the broadcaster for its customers, employees and for football, provided certain conditions required to put the business on a long-term viable footing were met.
"Regrettably, despite intensive efforts on all sides over the past few days, and despite significant progress in a number of areas, there remain a number of issues which we have been unable to resolve within the time available."
Earlier today, the Premier League confirmed it had terminated its contract with the sports broadcaster. Setanta's 46 live matches for the 2009/10 season will now be sold off.
In a statement, the Premier League 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."
Setanta released a statement which said the firm would "consider its options" over the weekend.
It said: "The board of Setanta notes the statement issued earlier today by the Premier League and will consider its options over the weekend. In the meantime, Setanta's sports channels continue on air."
The Irish firm was given until today to fulfil “certain contractual requirements” or it faced losing the last part of its existing £392 million (€462.5 million) three-year deal.
Setanta is attempting to stave off administration by raising funds to help pay TV rights bills, which include the Barclays Premier League, as well as the FA Cup and Scottish Premier League (SPL).
Big Brother maker Endemol has also been linked with an investment.
The company, which started taking new subscriptions again this week on hopes of a rescue, boasts around 1.2 million subscribers - but that is still short of the reported 1.9 million it needs to break even and customer numbers have been hit by the recession.
Setanta suspended new subscriptions last week, prompting fears over the future of the business. It also missed a £3 million payment due to the SPL under the current deal - forcing the league to pay clubs from its own pocket.
It owes £30 million to the Barclays Premier League. Deloitte has been lined up as administrator if the broadcaster’s survival efforts fail.
Agencies