Sport 927 has expressed interest in taking over the troubled Sports Entertainment Network Pty Ltd (SEN), which has gone into voluntary administration.
While SEN is still on air in Melbourne, thanks to the goodwill of staff, it has been taken off air by ARN in Adelaide, which is simulcasting Mix on the old 5DN frequency.
This follows the appointment by Pacific Star Network, which owns the signal of the old 3AK, of Sal Algeri and Simon Wallace-Smith of Deloitte as voluntary administrators.
SEN operates 1116 in Melbourne and 1323 in Adelaide.
Noel Crowe, General Manager of 927, which broadcasts racing and sport in Victoria, has told The Australian’s Jane Schulze he is interested in pursuing a lease agreement with Pacific Star.
We would have a degree of interest, but it would have to be on very specific terms.
“We are not in the business of operating on unrealistic financial models.”
Apart from the leasing costs, other issues include agreements on program formats at Pacific’s other station, 3MP.
If Sport 927 could successfully acquire the SEN lease, Crowe says it would free up 927 to focus entirely on racing.
“The other channel could offer top line general sport, supplemented by racing.”
Sport 927 aside, the AFL reportedly approached Pacific Star two months ago with a rescue plan for the struggling station.
Pacific Star’s Chairman, Peter Quattro, has revealed three serious suitors have approached the company about leasing the licence, but he will not reveal names.
The AFL’s Broadcasting and Strategy General Manager, Ben Buckley, has told Christian Catalano in The Age that operating a station is a serious option.
“We’re looking at all the options available to us in how we deal with our radio rights in the future.
“We’ve spoken to all our existing partners and we’ve spoken to other potential partners, as you would expect us to do.”
If the AFL takes over from SEN, it could not broadcast its own games until the existing radio rights deal with the ABC, 3AW and Triple M expires in 2007.
Another party reportedly interested in SEN is sports’ marketing and management group, IMG.
The first meeting of SEN creditors is scheduled for Tuesday, but the administrators say Pacific Star could take over the lease because SEN is in breach of conditions.
Pacific Star has declared it is required to comply with the Australian Broadcasting Authority’s requirements of the license.
“The company will therefore work closely with the administrator to protect its interests and ensure the best possible outcome for its shareholders.”
Before last week’s halt in trading, SEN shares last traded at 6 cents.
Sal Algeri says SEN has been incurring losses since launching in January 2004, and a review will determine whether it will be restructured or shut down completely.
“We will conduct a thorough review of the company’s financial and trading position before determining the best course of action.
“The administrators have taken control of the operations of SEN from today and will work with existing management to assess the company’s options going forward.
“The outcome of the administrators’ review will be advised as soon as it is completed.”