Blue Square Clubs Could Get Torpedoed By Sinking Setanta

Setanta Sports are drowning in debt, up the proverbial creek without a paddle and are about to walk the plank, among other, similar, marine themed euphemisms about being in trouble and having no money.

Having failed to meet its target of 1.9 million subscribers needed to break even - managing only 1.2 million - the company have found themselves hemorrhaging money at a reported rate of £100 million a year.

As a consequence they have failed to make payments to the Scottish and English Premier Leagues (£3 million and £30+ million respectively), loosing their rights to their EPL games in the process.

The channel has also been forced to stop taking new subscribers. People trying to subscribe online were faced with a screen reading: "Oops... somethings gone wrong.", a contender for understatement of the decade.

It has been widely reported that a number of SPL clubs could be severely hit by the Irish Network's collapse but it is not just clubs north of the border which could take significant damage.

Clubs in the top flight of non-league football may also be forced to re-plan the upcoming season.

Setanta are two years into a £2.5m, five-year, contract with the Football Conference. A failure to honour this contract could see Blue Square Premier clubs losing £120,000 over the next three years, not including extra money clubs gain from televised matches.

Ebbsfleet United chairman John Moules, who was Conference chief-executive when the deal was made, told BBC Radio Kent:

"We can't afford to lose six pounds let alone £60,000.

"I'm sure we'll pull together but it will not be easy, it'll be a challenge," he added.

"We also receive money every time we appear on TV so it's probably nearer £200,000 over the next three years we each stand to lose.

"It isn't just the revenue. What concerns me is the profile it has given the competition which has attracted other sponsors to the game."

Andy Perry, chairman of Mansfield Town, also has concerns over the penalty clubs may have to pay over Setanta's demise.

"We are keeping an eye on the situation but it doesn't look good at the moment," he told the Mansfield Chad.

"For Mansfield Town, being on the television meant £20,000 in cash as well as valuable publicity. "

It's not just the top tier of non-league football that has been affected by Setanta's collapse. Hinckley United, of the Blue Square North, are currently owed £5,000 by the T.V. network.

Hinckley chairman Kevin Downes told thisisleicestershire.co.uk: "We are owed £5,000 by Setanta.

"It was the last scheduled payment from the 2008-9 season."But I think other clubs in the Premier Division might be owed a lot more.

"It is obviously a worry when any major sponsor hits financial trouble, and while £5,000 might not seem a huge amount of money it is to the likes of ourselves."

While the Setanta failed to meet a deadline for payments to the SPL and EPL, the Blue Square leagues have imposed no such thing.

"The Conference aren't in as strong a position as the Premier League," explained Moules.

"I don't think we would set a deadline and we hope along the line there will be a saviour at Setanta who could keep this level of coverage at this level at the game."

The 'saviour', however, is unlikely to be Len Blavatnik, whose Access Industries pulled out of a rescue deal. However, it is rumoured that they could launch another bid for the broadcaster should it go into administration, when the price for a deal would certainly become lower.

If there is no last ditch rescue Moules is confident that there will be help from the FA to help minimise and damage done.

"Five years ago when ITV digital went a similar way it looks like Setanta are going, the Football League went to the FA who went to the Premier League and Football Foundation and found millions of pounds to ease the blow.

"I still think at this level we could go to the FA and ask to support us."

Blue Square club chairmen across the country will be anxious to know the final fete of the deal and whichever way it goes they will want to know sooner rather than later.