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Just noticed Achill's comments, I wouldn't have imagined any of the previous posters were suggesting Sky run the TSP or any other tourney's at a loss.
To be constructive may I suggest the following:
1) TSP Lite Guarantee - It didn't cross my mind that the suits at SkyPoker can't do the maths, but just in case, for a £1.10 entry it would appear a £250 guarantee is not going to be covered, so either reduce the guarantee or find a half way house, maybe increase entry to £2.20, try it again with the £250 guarantee.
2) Associated TSP Lite League - I think the associated league format and its added prizes appealed to most participants and certainly boosted the initial entrants to the TSP Lite.
Why not increase the rake to cover the cost of these prizes?
For example increase the buy in from £1.10 - £1.60 (or £2.20 - £2.70).
This generates an additional 50p rake per buy in, if you take a 'safe avarage' of 100 entry's ( first weeks could easily be in excess of 200) per 8 week league, that's £50 per week, giving £400 additional rake, which will cover the quality league prizes on offer.
I think Sky Poker know's how to run a business so I'm sure they can come up with the right figures for their customers.
Obviously advertising of a re-launched TSP Lite LEAGUE would have to be imporved with the additional rake and league format made clear well in advance of the start of the first tournament.