British Sky Broadcasting Could Rise on Setanta's Demise

British Sky Broadcasting (BSY), or Sky as it is more commonly known, strengthened its market position this week following the collapse of Setanta, the Irish domiciled broadcaster. Setanta, with 1.2 million subscribers in the UK and Ireland, failed to meet a £30m payment obligation to the British Premier League and fell into administration on Tuesday 23rd June. Last minute efforts to re-finance the business failed and the original private equity investors will see their equity lost as creditors move in to claim what little assets remain.

The move, though a disaster for Setanta’s staff and investors, gives Sky the opportunity to boost subscriber numbers to its sport proposition which competed head-on with Setanta’s offering. ESPN has secured the rights to Premier League matches previously owned by the Irish broadcaster, though details of the deal remain unclear.