ITV Digital Dispute Goes Into Extra Time

ITV Digital and the Football League are thought to have agreed to further negotiations over the £315m football rights deal that is threatening the future of the troubled pay-TV service.

According to a report in today’s Financial Times, senior executives reviewing ITV Digital’s financial situation agreed yesterday (see ITV Digital In Salvage Talks) to hold further talks with the Football League in an attempt to resolve the dispute that could cost the pay-TV platform up to £500m if the League attempts to sue.

ITV Digital has refused to pay the £178 million it owes the Football League under the terms of a three-year deal to televise its Nationwide League football matches. However, the platform’s joint owners, Carlton and Granada, have offered the League a new extended contract, which would give it a share of the broadcaster’s profits once it recovered from its financial difficulties.

The League has so far rejected the offer (see Football League Rejects ITV Digital Offer) and according to speculation is considering suing ITV Digital for the money that it is owed, plus the cost of losing sponsorship deals and advertising revenue linked to television.

A spokesman for the Football League could not confirm if legal proceedings were underway, but said: “The bottom line is that we have a contract that must be honoured. We will do everything necessary to make Carlton and Granada meet their obligations to us and our members.”

The Government’s growing anxiety over the dispute became evident yesterday when Sports Minister, Richard Caborn, offered to act as an intermediary in any further negotiations. Previously the Government has refused to get involved in what began as a dispute between two commercial organisations. However, the closure of ITV Digital could delay plans for the analogue switch-off, which is an obvious cause for concern.

ITV Digital: 0808 100 0101 www.itv-digital.co.uk

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