The cup is sponsored by Setanta Sports; the Irish sports television network. The competition was launched with Setanta providing support for prize money (€350,000) and sponsorship (€1.6 million over 4 years).
For this season the cup was simply known as the Setanta Cup before being renamed the Setanta Sports Cup from 2006 onwards.
The teams would be split into two groups of 3 teams and play each other twice, once at home and once away. The winners of each group would play in a single game final, to be held in Tolka Park if at least one team from the Republic of Ireland was involved. If the final was played between two teams from Northern Ireland, the final would be held at Windsor Park.
Linfield qualified by winning the 2003–04 Irish Premier League. Glentoran qualified by winning the 2003–04 Irish Cup. The third spot went to Portadown for finishing second in the 2003–04 Irish Premier League.
Following a draw (in which league winners were kept apart), the teams were placed as follows;