League threat to sue ITV owners

NEWS: The Football League's refusal to accept ITV Digital's vastly reduced offer for its broadcasting rights hardened yesterday…

NEWS: The Football League's refusal to accept ITV Digital's vastly reduced offer for its broadcasting rights hardened yesterday when it warned Carlton and Granada, the owners of the struggling pay-TV platform, that if they reneged on their existing deal they would never broadcast top football games again.

"If they ultimately renege on this deal, I don't think anybody in football would ever want to talk to them again," said the league director and Bradford City chairman, Geoffrey Richmond, after a two-hour meeting of First Division chairmen.

"The football family, including the Football Association and the Premier League, would give the same answer."

David Burns, chief executive of the league, endorsed the view, adding: "And that goes beyond this country, into Europe, as well."

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Top football is one of the biggest audience drivers on TV and it would be a huge blow to the two commercial broadcasters if they were not able to show live games.

The league reiterated that it would sue Carlton and Granada for £500 million, including damages and costs, if they fail to pay the outstanding £178.5 million they are owed on the three-year deal.

Up to one third of the league's 72 clubs could go bust if the cash is not forthcoming, but hopes of an 11th-hour deal are still alive at many clubs.

However, for the first time the league publicly indicated it was willing to negotiate on terms. It said that as long as the first £89.25 million tranche of the cash is paid on its due date of August 1st it is ready to be "creative" on how and when the remaining £89.25 million will be paid. ITV Digital has offered only £50 million over the two years.

"Our strategy will continue to be pursued remorselessly until we have achieved a satisfactory conclusion to this highly regrettable state of affairs," said Burns. "Carlton and Granada must not be allowed to renege on their commitments or cause irreparable damage to professional football clubs and their local communities."

The league's refusal to compromise has pushed ITV Digital a step closer to liquidation.

The pay-TV platform is already in administration - the last step before bankruptcy - and league officials will today seek to secure meetings with the administrators to see if a compromise can be reached.

City analysts are increasingly fearful that the pay-TV rival to BSkyB will not survive.

The key bone of contention between the clubs and the TV companies is whether Carlton and Granada are liable for the contract if ITV Digital goes bust.

The full version of the contract containing guarantees that Carlton and Granada would pay up if ITV Digital went under was never signed, and some experts are blaming the league's lawyers.

Some smaller clubs in the Second and Third Divisions are growing increasingly fearful that they could be left with nothing if ITV Digital goes bust and they want the league to compromise. They are concerned that even if the legal battle is won, it could take two years to complete and they cannot survive that long without TV cash.

Meanwhile, Arsenal and England breathed a sigh of relief yesterday when it was revealed that Ashley Cole sustained only minor damage to his left knee on Monday and will be available for the World Cup and most of the domestic run-in.

Arsenal's Patrick Vieira will have to be careful against Spurs and Middlesbrough because one more booking would earn him a two-game suspension and could force him to miss the FA Cup final or the league game against Manchester United.

The midfielder picked up his ninth yellow card of the season in the 3-0 win at Charlton and will have to serve a ban if he earns a 10th before April 14th.

Leicester City's new stadium will be called the Walkers Bowl after the relegation-haunted Premiership club concluded a deal with Walkers Snacks Ltd. The club will receive an up-front £1.5 million from the deal.