IRISH pay-TV company Setanta has today been placed into administration after rescue talks designed to secure new funding collapsed.

The move will almost certainly mean the end of television coverage for the Blue Square Premier League and the ensuing loss of revenue to all 24 member clubs, in the region of over £70,000 each, plus the sponsorship money received by the other 44 Blue Square North and South teams.

The Football Conference today also announced that they had suspended the draw for the first round of the Setanta Shield until further notice.

Accountancy firm Deloitte has confirmed it has been appointed as administrator for the UK part of the business, which employs about 200 staff. They will now be made redundant.

Setanta Sports News, the company's joint venture with Virgin Media, which is produced by ITN and employs about 60 additional staff, ceased broadcasting at 6pm today.

The broadcaster's other wholly owned channels, including Setanta Sports 1 and 2, went off air around the same time.

The pay-TV operator has suspended the collection of subscription payments from customers in the UK with immediate effect.

"We can confirm that no further monthly subscriptions or direct debits will be accepted from customers of the UK business," said Deloitte's Neville Khan, one of the partners appointed to carry out the process.

The company will continue trading and Setanta Ireland and Setanta International are not covered by the appointment, Deloitte added.

After an agreement with US billionaire Leonard Blavatnik, who was in talks to buy a majority stake in the business, collapsed, Setanta's founders were thought to be focusing on trying to rescue its Irish and north American operations, which are believed to make a modest profit.

Those talks are continuing, according to Khan. "The International and Ireland businesses continue to trade on air whilst we are in discussions with parties to take on those businesses as going concerns," he said.

Three Deloitte partners - Kahn, Lee Manning and Nick Edwards - have been appointed joint administrators to Setanta Sport Limited and Setanta Transmissions (UK) Limited.

David Carson, of Deloitte in Ireland, was appointed Receiver to Setanta Sport Holdings Limited, Setanta Media Holdings Limited, Setanta Media Limited and Setanta Sport (PPV) Limited.

Setanta has 420 employees in the UK and Ireland, and approximately 1.2 million subscribers, with channels available in three million homes.

Neville Kahn said: "After a huge effort by the Setanta board, management team and its backers, it has not been possible to save the GB business, which will be wound down in due course."

Deloitte added that Setanta customers should visit the company's website, www.setanta.com, for further information.

Setanta confirmed the appointment of Deloitte as its administrator.

In a statement, the company said: "Existing investors were prepared to commit substantial additional funds to the business, subject to improvements in its operating performance. Setanta sought to make significant reductions in its cost base by measures that included renegotiating its agreements with commercial partners and rights holders.

"Although progress was made, the improvements achieved were insufficient to ensure that the business could become profit-making."

Sir Robin Miller, chairman of Setanta, added: "This is a sad day for all concerned. Since its inspired inception a number of years ago, Setanta and its financial backers, have invested hundreds of millions of pounds buying UK and international sports rights. With the hard work and dedication of its staff, a pay-TV broadcaster was created which entertained people in three million homes with top-class sport.

"Unfortunately, in a difficult and highly competitive market, and despite strenuous efforts by the board and management, it has not been possible to find sufficient additional funds in the time available to ensure its survival."

The Observer