GAA in dark on Setanta crisis implications

TV COVERAGE OF SPORT:THE GAA is awaiting developments in relation to the future of sports broadcaster Setanta. The association has a long-established relationship with the company, whose future has been cast into doubt in recent weeks and which was yesterday engaged in crisis discussions at board level.

In its early existence Setanta became the international rights holder for GAA fixtures and more recently has held through the Setanta Ireland channel rights to a number of floodlit National Football League matches.

“We’re still in the dark until we know what the new Setanta model is going to be,” said the GAA’s commercial and marketing manager Dermot Power.

“We’ve been in contact with them all the time. At stake are our international rights and domestic league rights. We do want to get the games to our people all over the world and as originally, pubs and clubs are still the major distribution channels for us overseas.”

Whereas Setanta’s acquisition of the international rights led initially to a major increase in revenue for the GAA, at one stage bringing in more than the domestic rights, recent developments such as the placing of RTÉ on Sky’s digital platform have severely weakened the market.

“International rights have receded hugely in importance. We had a very big European market that’s disappeared largely due to piracy and even in the UK the number of set-top boxes travelling across the sea has greatly reduced the number of signed-up pubs.

“We don’t know what’s coming out of this. There’s talk that the Irish operation might survive but that still leaves America and Australia.

“There was a business model before they went for the (English) Premiership, which was basically wholesaling rights and they had a pub circuit in Britain, America and Australia and you don’t know if that’s going to be revived.”

The company has lost soccer rights for both the English and Scottish premier leagues in recent days because of failure to meet contractual payments.

Asked if the GAA were experiencing similar problems, Power said: “No. Everything is okay at the moment.

“Setanta have been long-term partners of ours. We’d be very supportive of them and have been in communication with them throughout these difficulties. All they’re saying at this stage is that they don’t know until the picture clears.

“You’d hate to see anything happen to them. They’ve been very good to us, spreading the games around the world and helping make our prices more competitive by bidding for rights.

“Would the deals with pubs in America be affected by Setanta Holdings going into administration? I understand that’s a profitable operation. Our market is still largely funded by pubs and clubs and while there is a subscription service that’s a much smaller portion of our overseas rights.”

Meanwhile, the soccer authorities also have issues to consider as the company’s troubles have cast a major doubt over the future for the Setanta Sports Cup, with the draw for this year’s event, scheduled for Thursday, postponed yesterday, ostensibly on the basis that the company needs to “gain clarity” in relation to some of the issues facing it at present.

Five clubs from the League of Ireland and four from the Irish League were in line to compete in the event this year which was due to kick off in late August and finish in the middle of May next year.

The event is worth around €150,000 to the winners and its loss would be another blow to clubs like Bohemians, Derry City and St Patrick’s Athletic, who have already been hit by the downturn in the economy.

FAI chief executive John Delaney said last week that if Setanta’s backing of the tournament was withdrawn then it would be unlikely to take place this year.

Setanta’s problems were highlighted by confirmation yesterday that the Premier League in England has sold the TV rights for 46 of its games live next season to ESPN, the sports network owned by American media giant Disney.

ESPN is understood to have paid around €106 million after Setanta, the previous rights-holders, failed to make a €11.8 million payment on Friday.

Next season, dominant pay-TV firm BSkyB will show 92 games and for the following three years, BSkyB will show 115 and ESPN the remaining 23. Setanta also yesterday lost the rights to show Scottish games after also defaulting on a rights payment.