New investor enters Setanta talks

Setanta has not seen a volley of interested investors

Setanta, the Irish sports pay channel, is in talks with a new investor which could prevent the company going into administration, the BBC understands.

The board of Setanta will meet on Friday and a deal could be finalised in the next 72 hours, says BBC Sports Editor Mihir Bose.

The channel is seeking £50m in funding to avoid administration.

On Wednesday Setanta confirmed it had stopped taking on new customers as it battles to secure its future.

Mounting debts

Talks with fellow broadcaster BSkyB failed while Walt Disney-owned sports network ESPN denied speculation earlier on Thursday it would buy the beleaguered broadcaster.

But a new investor, who has emerged in the last 24 hours, is now believed to offer the best prospect for Setanta surviving in its present form, says Mr Bose.

Setanta, which shows cricket, golf and rugby union as well as football, has about 1.2 million subscribers.

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But this is only about 60% of the number it needs, according to analysts, and the company is losing up to £100m a year.

Setanta needs to pay £30m that is due to the English Premier League and has already failed to pay the Scottish Premier League £3m it owes in television rights money.

Under the current UK broadcast deal for the English Premier League, which lasts for one more season, BSkyB holds four packages of rights to show live matches next season - a total of 92 games - while Setanta has the other two packages - which cover 46 games.