UPDATE 1-Setanta suspends signing up new subscribers

* Has not gone into administration

* Working to secure company's future

* Source says looking at lots of options

(Adds company statement)

By Kate Holton

LONDON, June 10 (Reuters) - Cash-strapped Irish broadcaster Setanta said on Wednesday it had suspended signing up new customers as it fights to secure the business but said it would broadcast as normal and had not gone into administration.

Speculation has swirled for days that Setanta would be placed in administration but a source familiar with the situation told Reuters earlier on Wednesday that the board was continuing to pursue options and that its closure was not imminent.

The Irish Times said Setanta's chances of survival had even appeared to improve as it looked at a "number of live options" to rescue the group.

"As has been widely reported in various media channels, the management of Setanta Sports is in the process of attempting to secure the future of the business," it said on its Web site.

"The company has not gone into administration. All our channels are still broadcasting across all platforms and our subscribers can continue to enjoy our programming.

"However, in the current circumstances, we have decided to suspend temporarily the acceptance of new subscriptions." Rescue talks are being led by its founders Michael O'Rourke and Leonard Ryan, who started the business after charging fans to show an Irish World Cup match which was not available on British channels in a pub in London in 1990.

It grew quickly, acquiring the rights to show sports around the world from soccer to boxing, cricket and golf and is now struggling to meet the payments. The group has 1.2 million direct subscribers and needs around 1.9 million to break even according to analysts.

The long-term viability of Setanta's business model was also thrown into doubt in February this year when it failed to hold on to the rights to show its desired number of English Premier League soccer matches, a key draw for viewers.

Setanta currently holds the rights to show two English Premier League packages, or 46 live matches a season, but it lost out in the auction for the next three-year deal to BSkyB (BSY.L) and will in future show only 23 games per season against BSkyB's 115.

The failure to win the rights prompted Setanta to conduct a review of its business and attempt to renegotiate rights payments with a range of sporting bodies.

It missed a 3 million pound payment to the Scottish Premier League last week and faces a more than 30 million pound payment to the English Premier League, according to media reports.

Were the group to be placed in administration, the majority of its sporting rights would be returned to the sporting bodies for auction, but analysts believe they would reach a much lower price than before.

BSkyB could acquire some rights, although not all due to competition rules, while Disney's (DIS.N) sports service ESPN could be interested again after failing at the previous auction.

Setanta is a privately backed company whose shareholders include its management team and institutional investors. ($1=.6101 Pound) (Reporting by Kate Holton; editing by Simon Jessop and Hans Peters)