TV3 buy into Setanta

Elmo

From the Sunday Times :-

TV3, the Ballymount-based independent television station, is set to invest about €100m in Setanta Sports as part of a large fundraising being concluded by the burgeoning pay sports broadcaster.
This is part of Doughty Hanson’s plan to expand TV3’s television assets following the UK private equity group’s €265m takeover of the Irish channel in August.



It is understood that Setanta, which has about 200,000 subscribers, will raise about €320m in equity and debt. This will be used to help fund its £392m live English Premiership soccer rights and its plan to launch a golf channel early next year to broadcast the top PGA tournaments in America. The golf rights were secured recently in a €150m deal.

The balance of the funds being raised by Setanta are expected to come out of London. The fundraising is being led by JP Morgan.

Setanta has already raised €70m following its decision to offload NASN, a specialist television channel showing American sports, to ESPN. This deal will close shortly.

It is not clear what stake this €100m investment will give TV3. But it is expected that the founders Leonard Ryan and Michael O’Rourke, who along with some management members own 45% of the business, will have their shareholdings diluted.

Benchmark Capital Europe, in which the Irish businessman Barry Maloney is a key executive, is expected to retain its 40% shareholding, but AIG Global Sports & Entertainment fund is expected to be diluted by the funding round.

Under the deal, TV3 also hopes to leverage some of Setanta’s live sports output. At present, sport comprises a small proportion of TV3’s output. Its coverage includes some of Ireland’s away soccer qualifiers for the European Championships and live UEFA Cup matches.

TV3 recently concluded a deal to sell advertising airtime in Ireland on behalf of Setanta. In addition, Setanta has sold on some of its exclusive live rights to the 2007 Rugby World Cup to the broadcaster. TV3’s coverage of the tournament will comply with a government edict that these games should be available free to air.

TV3 was shortlisted last month by the Broadcasting Commission of Ireland for a regional youth radio licence covering the midlands and the northeast.

Neither TV3 nor Setanta would comment on the latest move.

So is TV3 gearing up at last.

Will TG4 be pushed out of GAA League Football?
Will RTE have an actual competitor for GAA championship sports?
Will TV3 provided some Champions League Coverage after lossing to RTE and Setanta and for that matter some live Eircom League which it lost to RTE, TG4 and Setanta?
Will TG4 be pushed out of live Eircom League action?
And will RTE be pushed out of the Premireship and Champions League?

Perhaps its a good thing that Canwest have left Ireland, well at least for sports fans.

Foggy43

Sorry Elmo but I can't answer any of your questions but Setanta have done a deal with BT Vision.
I think BT Vision was launced yesterday and in a deal with Setanta and will be able to show next seasons premiership games live also.

http://www.btvision.bt.com/news.aspx?file=news_article_041206_3.html

This is probably useless information to most in Ireland except those who can receive Freeview from the UK. I am pretty sure BT Broadband is available in Ireland to the lucky few that can access it.

watty

The btvision broadband is UK only. The Freeview is only used for "regular" non-BT channels on the BTvision box. It's a hybrid IPTV system.

flogen

Interesting move, although I would have much rathered that TV3 put that E100m into its own programming, rather than giving it to another station in the hope of simulcasting theirs.

The idea of TV3 becoming some kind of UTV-sized media "empire" is interesting though, especially if they start to move into radio.

Elmo

The idea of TV3 becoming some kind of UTV-sized media "empire" is interesting though, especially if they start to move into radio.

They have also applied for a radio licence in the Northwest.

Setanta have done a deal with BT Vision.

Surely that is for content as BT start to compete with NTL/Telewest in the UK nothing to do with shareholdings in Setanta.

byte

What license are they after in the North West?

Elmo

BCI RECEIVES FIVE APPLICATIONS FOR NEW
MIDLANDS / NORTH EAST REGIONAL LICENCE

http://www.bci.ie/news_information/press111.html

they want to call it ICE FM

ICE FM, Freezing the Ocean out of it!

[edit] that would be a good line only its the north east rather then the north west [/edit]

Surprised they just didn't call it 3FM :rolleyes:

Elmo

From www.iftn.ie

TV3 Confirms Setanta Investment
14-Dec-06


TV3 and Doughty Hanson have confirmed that they will become significant investors in Setanta Sport Holdings Limited.
Completion of the major investment deal, which is subject to regulatory and BCI approval, is expected in January / February 2007.

Close collaboration between the two broadcasters is expected once the deal is signed, enabling TV3 access to Setanta's sports content which includes the Barclays Premiership, Euro 2008 Qualifiers, SPL, GAA, Formula 1, Magners League rugby, Rugby World Cup, golf, the eircom League and, from next season, the UEFA Champions League.

TV3 Chief Executive, David McRedmond, said: “TV3 backed by Doughty Hanson is delighted to have this opportunity to participate in such a fast-growing broadcasting venture. Setanta has established itself as a leading international sports broadcaster, while TV3 is growing from strength to strength as Ireland’s most successful commercial television station. We look forward to working together to identify and deliver opportunities that will benefit each organisation in its own right as well as in collaboration.”

Mossy Monk

could prove to be a good deal for those not on ntl

channelsurfer

bad news for rte. good news for the gaa. a combined tv3/setanta bid next time round for tv rights would easily outbid rte as they are restricted by licence fee etc value for money. Maybe tv3 will leverage some of the 3pm saturday matches out of the deal . just a thought. as they say all to be revealed at a later stage.

Elmo

I know you should never put much thought into good relationships but RTE have never had any competition for GAA rights from TV3. TV3 have never shown even an ounce of interest in GAA so much so they didn't even go after GAA League or Ladies in the way that TG4 have done over the last 10 years. Nothing stopped TV3 going at smaller games and leaving the bigger games to RTE until they where ready for the big time.

Many will say bad news for GAA fans who may have to put up with Trevor Welsh commentating on matches. :eek: I cann't see them trying to employ another commentator its just not in TV3 to go get some fresh talent.

Or perhaps it's bad news for Trevor when Setanta tell him to pack his bags.

DMC

Elmo wrote:

TV3 have never shown even an ounce of interest in GAA so much so they didn't even go after GAA League or Ladies in the way that TG4 have done over the last 10 years. Nothing stopped TV3 going at smaller games and leaving the bigger games to RTE until they where ready for the big time.

Suicide, that's why.

When TV3 launched, they went for soccer, as it was the most marketable. Allianz NFL or Ladies football, there's no profit in that.

For TG4, CLG Beo its a good way of filling their programming quota. 71,000 viewers on a Sunday afternoon, 10% share. Its not something TV3 would pursue.

Elmo

Ta bron orm, ach beigh TG4 as Gealige, sin e pheb mor mar nil alan gealige ag duine.

Ok thats my bad Irish.

TG4 gets 70,000 - 200,000 viewers for their GAA output they have allowed Ladies Football to be the biggest growing sport in Ireland with their sponsorship.

TG4 are in Irish and not many people speak the lanuage (I am all for TG4's remit through the Irish Lanuage, and sport allows for this remit).

TG4 spend 3,000,000 euro each year on live sport. How much did TV3 spend on UEFA Champions League and As Live Irish Away/Friendlies Matches? Alot more then what TG4 spend on Wimbleton, Tour De France, Ladies GAA, GAA League and other sporting programmes.

I think that for 3,233,000* TV3 could easily pay up and get higher viewers for their sports coverage in the English lanuage, while at the same time increasing their over all average from 15% to maybe 20%.

I don't think that TG4 could ever justify having a spending spree with their sports department they do have to provide other programming in the Irish lanuage such as Drama, News and Entertainment etc.


* http://www.tg4.ie/Bearla/Corp/TB2005-B.pdf *PAGE 13