ITV Digital In Salvage Talks

ITV Digital is believed to be meeting with the Football League today in a last ditch attempt to resolve the dispute over television rights, which could threaten the future of the troubled digital TV platfrom (see Football League Rejection Could Close ITV Digital).

The meeting is also expected to put in place the mechanism for Deloitte & Touche (see ITV Digital To Restructure; Merger Talks Revived?) to act as administrators if talks collapse.

ITV Digital announced last week that week that it is only prepared to pay the Football League £50 million of the £178 million it owes under the terms of a three-year deal to televise its Nationwide League football matches.

On Friday ITV Digital’s shareholders, Carlton and Granada, offered the League a new extended contract stretching beyond 2004, which would give the League a share of the broadcaster’s profits once it recovered from its financial difficulties. However, the League rejected the offer, fuelling speculation that the closure of the troubled digital TV service could be imminent (see Football League Rejects ITV Digital Offer).

According to reports in the national press today, ITV Digital could face the prospect of a £500m court action from the Football League if it does in fact close. The League, which has stated that as many as half of its members could be forced out of business if the broadcaster fails to pay the full price for the football rights, is believed to be considering suing ITV Digital for the money it is owed, plus the cost of losing sponsorship deals and advertising revenue linked to television.

Recent TV stories from MediaTel NewsLine: ITV And BBC Seek ITC Permission For World Cup ITV Revenues Down 12% In H1, Visibility Still Limited Analysis: Sport, Not The Draw It Used To Be?

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