Clubs face ruin after losing claim
A judge ruled that the digital television company's owners, media companies Carlton and Granada, were not liable for the £132 million the league was claiming under its original broadcasting rights deal.
The ruling was a savage blow to the survival hopes of many of the league's 72 professional clubs who play in the three divisions outside the premier league.
With the new league season only nine days away, several are in administration already and most of the clubs are struggling to pay inflated player salaries.
ITV Digital shut down in April because it could not pay its bills but a judge decided on Thursday neither Granada nor Carlton had guaranteed the contract.
"In my judgment the Football League's case falls at this first and fundamental hurdle," Justice Gordon Langley said. The league issued a statement saying it was disappointed at the judgment and would now consider an appeal.
"(We) would like to pay tribute to football supporters throughout the country for backing their clubs in this campaign," it added.
The league's chief executive David Burns told a news conference the decision raised a question mark over the future of many clubs.
"There's no doubt that the result today will put in jeopardy the finances of many of the football clubs.
"It's extremely difficult to say how many," he said.
The judge indicated that the league had been naive in its dealings with ITV Digital, entering a multi-million pound agreement without securing proper financial guarantees.
Granada and Carlton said in a joint statement they welcomed the court decision, which came after four days of hearings.
The case evoked strong emotions. Chairmen of dozens of clubs among them celebrity chef and Norwich City director Delia Smith have picketed the broadcasters' London offices.
"For football it's a very, very, very sad day," said Paul Scally, chairman of division one club Gillingham, after the judgment.
"They've basically shafted football and they've shafted it good and proper," Scally told reporters.
Since the collapse of ITV Digital, the league has re-awarded the contract to Rupert Murdoch's satellite broadcaster BSkyB, which already has the rights for live coverage of premier league matches.
The new deal will bring in £95 million over the next four years and provides a lifeline to some clubs.
But the BSkyB agreement falls well short of the original ITV Digital contract, which was for £315 million over three years.
The league initially planned to sue the broadcasters for £178.5 million outstanding under the ITV Digital deal, but reduced its claim to £132 million after agreeing the new four-year contract with BSkyB.
Soccer officials have previously said about 30 clubs in England are under threat of closure after ITV Digital's collapse.
Many had entered into financial deals with players and suppliers based on expected cash from the TV rights deal.
In May, Bradford City, in the premier league two seasons ago, became the first major club to fall into administration following the breakdown of the ITV Digital deal.
Its creditors accepted a rescue package yesterday.
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