Post by QPR Report on Mar 3, 2009 7:33:32 GMT
Telegraph
Fears over £425 million FA TV deal
The Football Association's broadcast partners, Setanta and ITV, are seeking to renegotiate the terms of contracts worth £425 million in response to major financial pressures.
By Paul Kelso, Chief Sports Reporter
Telegraph Sport understands that on Monday satellite broadcaster Setanta delayed making a scheduled payment on their £150 million contract and it emerged that ITV are seeking to reschedule payments on their £275 million deal.
Setanta had been due to make a payment of more than £10 million but have withheld the money as they attempt to renegotiate the terms of their deal.
ITV are also hoping to reschedule their payment schedule as they seek to address a short-term cash-flow problem. While ITV are understood to have met all scheduled instalments so far the broadcaster are seeking to smooth the payment schedule, which is front-loaded to the opening years of the deal.
ITV's coverage of the FA Cup has been troubled, attracting widespread criticism when many viewers missed the decisive goal in the fourth-round tie between Liverpool and Everton when the channel switched to an advert.
The FA's four-year deal with the broadcasters, which began this season, is worth £425 million and delivered a huge boost to the organisation when it was signed in 2007.
News that both broadcasters are actively seeking to renegotiate their contracts will raise fears about the financial position however. The FA reject such concerns and will resist attempts to reschedule payments. They remain confident that their contracts are robust and that the major commercial properties, the England team and the FA Cup, will retain their value and appeal.
Under the terms of Setanta's deal the broadcaster are understood to have more time to pay before they are in breach of contract.
Earlier this month Setanta lost the rights to one of the two packages of Premier League matches they own, prompting questions about the viability of their business model.
Management at the broadcaster subsequently instituted a major review of the business, prompting concerns among sports that have signed deals with the station.
Last night a Setanta source insisted they would continue to meet their commitments. ITV sources stressed that they have met all their payments to date and remain committed to their deal with the FA. The FA declined to comment on confidential contractual issues.
As well as the Premier League and the FA, Setanta has a deal with Premier Rugby that starts in 2010, the Indian Premier League and the US PGA Tour.
ITV's position will become clearer tomorrow when they reveal their results for the last financial year.
www.telegraph.co.uk/sport/football/leagues/premierleague/4929488/Fears-over-425-million-FA-TV-deal.html
Fears over £425 million FA TV deal
The Football Association's broadcast partners, Setanta and ITV, are seeking to renegotiate the terms of contracts worth £425 million in response to major financial pressures.
By Paul Kelso, Chief Sports Reporter
Telegraph Sport understands that on Monday satellite broadcaster Setanta delayed making a scheduled payment on their £150 million contract and it emerged that ITV are seeking to reschedule payments on their £275 million deal.
Setanta had been due to make a payment of more than £10 million but have withheld the money as they attempt to renegotiate the terms of their deal.
ITV are also hoping to reschedule their payment schedule as they seek to address a short-term cash-flow problem. While ITV are understood to have met all scheduled instalments so far the broadcaster are seeking to smooth the payment schedule, which is front-loaded to the opening years of the deal.
ITV's coverage of the FA Cup has been troubled, attracting widespread criticism when many viewers missed the decisive goal in the fourth-round tie between Liverpool and Everton when the channel switched to an advert.
The FA's four-year deal with the broadcasters, which began this season, is worth £425 million and delivered a huge boost to the organisation when it was signed in 2007.
News that both broadcasters are actively seeking to renegotiate their contracts will raise fears about the financial position however. The FA reject such concerns and will resist attempts to reschedule payments. They remain confident that their contracts are robust and that the major commercial properties, the England team and the FA Cup, will retain their value and appeal.
Under the terms of Setanta's deal the broadcaster are understood to have more time to pay before they are in breach of contract.
Earlier this month Setanta lost the rights to one of the two packages of Premier League matches they own, prompting questions about the viability of their business model.
Management at the broadcaster subsequently instituted a major review of the business, prompting concerns among sports that have signed deals with the station.
Last night a Setanta source insisted they would continue to meet their commitments. ITV sources stressed that they have met all their payments to date and remain committed to their deal with the FA. The FA declined to comment on confidential contractual issues.
As well as the Premier League and the FA, Setanta has a deal with Premier Rugby that starts in 2010, the Indian Premier League and the US PGA Tour.
ITV's position will become clearer tomorrow when they reveal their results for the last financial year.
www.telegraph.co.uk/sport/football/leagues/premierleague/4929488/Fears-over-425-million-FA-TV-deal.html