Football League Battle With ITV Digital Continues

Following ITV Digital’s announcement that they would honour a £20 million payment owed to the Premiership in lieu of broadcast rights, the FA chairmen decided to pursue ITV Digital – through the courts if necessary – for this year’s payment. They did concede, however, that there may be some room for re-negotiation regarding the next payment of £89.25 due in August 2003.

League representatives are due to meet with ITV Digital administrators this week regarding the payments. Press reports suggest that ITV Digital has offered the league £25 this year with a further £25 next August. If the league, as it appears, is holding out for an offer upwards of £100 million then it is likely that they will need to pursue Carlton and Granada in court for the payments.

The league says that, if an acceptable offer is not made, court proceedings against Carlton Communications and Granada will be started for the amounts owed plus damages and costs. It is anticipated that such a claim would be in the region of £500 million.

If a court battle ensues, analysts fear that the impact on Carlton and Granada’s share price will prove damaging to the companies. Both companies deny that the contract signed by the league offers any recourse through them or financial liability for ITV Digital’s debts suggesting lengthy proceedings.