The Football League has proceeded with its threatened legal action against the owners of ITV Digital, launching a £178.5 million claim against Carlton and Granada. The League is seeking a declaration that Carlton and Granada are liable as guarantors for payments totalling £178.5 million owed by ITV Digital, plus interest.
Football League chief executive David Burns said: “From the outset of this dispute The Football League has made it abundantly clear that it will, if necessary, use all options to pursue Carlton and Granada for monies outstanding from our broadcasting agreement.
“The Football League has sought to negotiate with Charles Allen and Michael Green but they have refused to meet with us and, in view of their unwillingness to enter into a meaningful business discussion, we are now focussed on the legal process. Leading counsel has advised that the League has a strong case on the merits and we remain confident of success.”
The Football League is also preparing a claim against the ITV Network, as it asserts that ITV Digital and the ITV Network (at the direction of Carlton and Granada) have acted in partnership to exploit the League’s media rights.
In a statement issued yesterday, the League said that it accepts that the collapse of ITV Digital effectively ends their contract and has consequently taken back all media rights granted under the terms of the agreement. A claim for damages, exceeding £500 million, will be lodged with the liquidator of ITV Digital, once appointed.
“The failure of ITV Digital should not distract people from recognising that The Football League remains a hugely popular and exciting sporting programme. More people attend our games than any other competition in Europe and this season we have enjoyed our best attendances for 33 years, with over 15 million people going through the turnstiles” added Burns.
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