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Football clubs face financial ruin as ITV Digital collapses
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Following ITV Digital's collapse, the Football League has given a strong indication that it will take Granada and Carlton, the owners of ITV Digital, to court if necessary, claiming as much as £500m including damages and costs, if they fail to pay the remaining £178m owed on a three year television rights deal.
Many clubs in the Football League have already allocated or spent money expected from the television rights contract and now face financial ruin after ITV Digital was taken into administration last week and announced it could only afford a further £50m.
In response to this offer, the League has has taken a firm stance and said ITV Digital's £50m is not sufficient, but it also suggested that a contingency plan could be put into operation.
In a statement, Keith Harris, chair of the Football League, announced that if ITV Digital were able to find the full £89m, for the next instalment due in August, the league would be prepared to look elsewhere for backing for the remaining part of the contract.
Following ITV Digital's collapse, the Football League has given a strong indication that it will take Granada and Carlton, the owners of ITV Digital, to court if necessary, claiming as much as £500m including damages and costs, if they fail to pay the remaining £178m owed on a three year television rights deal.
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