Soccer: League issue ultimatum to ITV Digital

The Football League have issued ITV Digital with an ultimatum, threatening legal action unless they receive the remaining two instalments of their £315m (€515m) three-year agreement to televise live matches.

The League will launch proceedings against Carlton and Granada unless their ITV Digital company pay £89.25m (€146m) in August and agree to enter into discussions over the final instalment of £89.25m (€146m), currently due in August 2003.

The beleaguered broadcaster - put into administration last week - is refusing to stump up the remaining £179m (€293m) owed for the final two seasons of their contract to screen live games from Divisions One, Two and Three.

But the League will not allow the collapse of a contract which helps many hard-up clubs stave off bankruptcy.

A League statement revealed a legal suit - for up to £500m (€817m) including the remaining money, damages and costs - will follow if ITV Digital reject the ultimatum.

David Burns, chief executive of the Football League, said: "In the absence of such a settlement, the Football League will commence proceedings against Carlton Communications and Granada for the amounts owed plus damages and costs.

"The claims would expected to be in the region of £500m (€817m).

"If the ITV Sport channel is closed down, the Football League will consider a number of options for licensing its product, the most popular football league in Europe, to other media platforms over the medium term.

"At this stage, no alternative will be ruled out.

"After a thorough discussion of all the issues relating to this product, the board and the heads of the First Division clubs are united in their determination to see honoured a contract freely entered into by two multi-billion pound companies.

"The clubs have in good faith built their medium-term plans on contracted revenues.

"Carlton and Granada must not be allowed to renegotiate their commitments or cause irreparable damage to professional football clubs and their local communities."