Pay-TV football dispute deadlock

The efforts to reach a compromise between the English Football League and ITV Digital over a disputed rights deal were deadlocked…

The efforts to reach a compromise between the English Football League and ITV Digital over a disputed rights deal were deadlocked yesterday as the owners of the cash-strapped pay-TV company refused to talk.

Granada and Carlton Communications want to distance themselves from the dispute as much as possible since their venture - ITV Digital - called in administrators last week after failing to renegotiate a contract to broadcast league matches, sources said.

"The deal was strictly between the Football League and ITV Digital," one source close to the ITV owners told Reuters, stressing the contract had no shareholder payment guarantee.

"I don't see talks between the shareholders and the league taking place. It's just not going to happen," the source said.

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The Football League, representing the 72 English clubs below the 20-team elite Premier League, has demanded a meeting with Granada and Carlton to discuss the multimillion pound sterling rights deal to broadcast football matches.

The league, which has maintained a threat to sue ITV Digital and its owners for £500 million sterling (€816 million) should a compromise not be reached, is waiting for Carlton and Granada to get in touch. The league believes talks with the owners are crucial.

Television groups Carlton and Granada are seen as having the means to potentially solve the dispute, whereas ITV Digital is cash-strapped. Failure to strike a deal could threaten the future of many clubs in the league, which rely on broadcast cash.

The league and the broadcasters remain far apart. The league is insisting ITV Digital pays by August £89.25 million, half of which it still owes under the terms of the original £315 million agreement. The league says it will then negotiate on the final payment. The pay-TV firm has offered £50 million in total for the remainder of the contract.

Shares in Granada and Carlton rose last week on expectations that the ITV Digital venture would close. - (Reuters)