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ESPN Grabs Premiership Rights Held by Setanta

It doesn't call itself the Worldwide Leader in Sports for nothing. ESPN walked away yesterday with the rights to broadcast English Premier League games formerly held by the now financially crippled Setanta, which had defaulted on its payments. The EPL conducted a hastily arranged auction which ESPN is thought to have won with a bid of about 90 million pounds, which, together with the 40 million pounds already received by the EPL from Setanta means the league is actually coming out about even with where it would have been under the original Setanta contract. That certainly comes as good news to the smaller, bottom of the table EPL clubs which rely on the broadcast rights fees to pay the salaries and transfer fees that keep them in the Premiership

Up north, the Scottish Premier League is in a similar boat, having sold its television rights to Setanta but its rights are far less attractive. BSkyB TV, a Fox affiliate is likely to be the new buyer, likely partnering with ESPN, but at a price that is 35 million pounds less than what Setanta was going to pay. The effect on a few of the Scottish Premier League clubs, Kilmarnock in particular, could be devastating. Kilmarnock is a bottom of the table club which is heavily in debt, draws poor crowds and must rely heavily on the payments media fees to survive. A significant cut, and 35 million pounds, even over the five years of the Setanta contract and divided among the 12 clubs, is a significant cut, especially to clubs in precarious financial condition, could see Kilmarnock and several other clubs wind up either sold or in administration (bankruptcy in American English).

Full post as published by Sports Biz on June 23, 2009 (boomark / email).