[Omah]

Like the contestants on its hit gameshow, Endemol's owners are facing Total Wipeout.

It may be the world's largest independent TV producer, but its value has now been written down to zero on the books of Telecinco. This implies a market value of less than its €2bn debts.

Revenues last year, at just over €1.2bn, are no higher than they were in 2007. Endemol's earnings, which peaked at €230m in 2007, have been steadily declining. The debt news service CapitalStructure reports that Endemol has warned lenders it expects earnings to fall to €140m in 2011.

Despite the problems, Endemol's UK management still completed a major earnout (golden handcuffs deal) last year, and its bosses are now being offered big packages to stay. UK chief executive Tim Hincks has signed a five-year deal which runs until 2014, worth £714,000 in annual salary and £2m a year in bonuses. Chief executive Ynon Kreiz, who made his fortune building and selling Fox Kids Europe, is unlikely to walk away. He has invested not just his reputation in exchange for remuneration even more generous than Hincks's.

Pay bosses more for making massive losses - where have we heard that before ?