Setanta Sports went off air at 6pm yesterday after its British business collapsed at the end of a six-month struggle to raise cash.

Deloitte, taking over as administrator, will wind up the UK division at the cost of 200 jobs and £450 million of investors’ money, from the likes of Doughty Hanson and Balderton.

Neville Kahn, a partner in Deloitte, said that the accountancy firm was effectively “working on the closure of the business in Great Britain”, while its small Irish and international units were likely to be sold.

Mr Kahn said that it was “correct” to assume that shareholders would be wiped out, although debt-holders, who are owed £300 million, may get some cash back. Among those losing their money are Leonard Ryan and Michael O’Rourke, Setanta’s founders, who tied up most of their fortunes in a 22 per cent stake in the business that they had run since 1990. Setanta’s remaining television rights, including its £150 million contract with the Football Association to broadcast FA Cup games and England home friendlies, will revert to the sports’ bodies. Its 1.2 million UK customers should see their direct debit payments cancelled.

Sir Robin Miller, the chairman of Setanta, said that it was “a sad day for all concerned”, but that an inability to raise fresh capital meant that the loss-making operation had had no chance of survival.

Setanta’s collapse had been inevitable since Friday, after a rescue attempt led by Len Blavatnik, the Russian-American billionaire, collapsed, prompting the Premier League to strip the broadcaster of the right to show its matches.

Ian Watmore, the FA’s chief executive, said that he expected “significant interest from broadcasters” in an emergency auction to be held over the coming days. On Monday ESPN, the Walt Disney sports broadcaster, won the right to show 46 live Premier League matches for the 2009-10 season and 23 matches for the following three years in a hastily arranged auction.

Lynne Frank, who runs the European division of ESPN, said that her company was “looking at a number” of the rights formerly held by Setanta, which also include US PGA golf in America and Indian Premier League cricket.

The demise of Setanta — Deloitte was also appointed as receiver of its holding company — also helped to spark a row between BSkyB and its rivals Virgin Media and BT, days before publication of a review of the operation of the pay-television market by Ofcom, the communications regulator.

Neil Berkett, the chief executive of Virgin Media, said that Setanta’s failure was “the symptom of a failed market”. Sean Williams, BT’s managing director for strategy, said that it demonstrated “the need for Ofcom to remedy the situation swiftly”.

Sky, which is 39.1 per cent owned by News Corporation, parent company of The Times, countered by saying that Setanta’s problems were of its own making. Mike Darcey, Sky’s chief operating officer, accusing his rivals of “cheap opportunism”, said that Setanta “ran into difficulties because it tried to grow too fast and lost control of costs”.

Ofcom is expected to give its verdict next week, with the subject so controversial that both sides are expected to appeal. Ofcom is examining whether Sky should be forced to sell its sports channels at a discounted wholesale price to Virgin Media and BT. Sources said that Setanta’s collapse would not prompt Ofcom to alter its conclusions.

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