BSkyB refused a £50m lifeline to Irish pay-TV broadcaster Setanta - which is facing administration - it has emerged.
Beleaguered Irish broadcaster Setanta has confirmed it has stopped taking on new customers as it "attempts to secure the future of the business".
Setanta had offered access to its live rights for 46 English Premier League games next season as an add-on option to Sky Sports, in return for the cash.
In a message to customers on its website, the firm stressed it was not in administration and that it was broadcasting all channels as usual.
On Tuesday night, Setanta held an emergency board meeting to discuss efforts to stave off administration.
Setanta has been holding emergency meetings to discuss survival plans.
There are conflicting reports from sources close to the company over the firm's future should it collapse.
There are conflicting reports from sources close to the company over the firm's future should it collapse.
Missed out
"As has been widely reported in various media channels, the management of Setanta Sports management is in the process of attempting to secure the future of the business," it said.
Setanta's founders Leonard Ryan and Michael O'Rourke are in talks with backers to secure financing to keep the firm going, according to some reports.
"In the current circumstances, we have decided to suspend temporarily the acceptance of new subscriptions."
Meanwhile US sports broadcaster ESPN is also said to be interested in either buying the Irish firm for a nominal sum or simply bidding for its rights to the Premier League.
ESPN, which has been expanding in Europe, has remained quiet over its investment strategy.
But it missed out on acquiring the rights to English football's top league when they were auctioned earlier this year.
Setanta appears to have closed its online and telephone subscription sales services.
And BT Vision said that while Setanta was still available in its packages and as a stand-alone channel, it was no longer advertising the service.
Wholesale changes
BSkyB's chief executive, Jeremy Darroch, said that his firm had been "talking to Setanta, and trying to work with them and help them", but that it could not agree to the Irish company's proposal.
"At the end of the day, we are not a bank, we are a broadcaster, not a supplier of working capital to a business and rights holder," he said.
"Our job is not to fund other companies. This is a huge amount of money."
Under the current UK broadcast deal, which lasts for one more season, BSkyB holds four packages of rights to show live Premier League matches next season - a total of 92 games.
Setanta has the other two packages, which cover 46 games.
Under European Union competition rules, BSkyB could not hold all of the rights packages.
However, Setanta could act as a wholesaler - retaining the rights, but then selling on the football coverage, which rivals would show through their channels.
Some analysts say that this business model is the only way that Setanta can survive, rather than selling its coverage directly to customers.
It already does this for Virgin Media, which makes Setanta channels available as part of its more expensive packages.
Setanta would probably receive less revenue this way than by selling directly but it would potentially be able to reach a wider market, thanks to the marketing power of the likes of BSkyB.
This business model would also allow Setanta save money, as it would not need marketing or customer services teams.
Subscriber shortfall
Setanta, which shows cricket, golf and rugby union as well as football, has about 1.2 million subscribers, but this is only about 60% of the number it needs, according to analysts.
Consequently, the company is losing up to £100m a year.
Deloitte is set to step in to run the firm if it goes into administration.
But Setanta has played down reports that it is set to call in the administrators.
The company 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.
Analysts widely expect that anybody picking up Setanta's sporting television rights would pay less than the current rates .
And Labour peer Lord Foulkes, the former chairman of Edinburgh side Hearts told the BBC that some Scottish top-flight football clubs could be forced out of business if they faced a loss in television revenue.
"They are already struggling financially and this on top of it could be the tipping point.
"In some clubs it represents up to 20% of their income and the loss of it would be really catastrophic."
