League should have taken ITV money, says lawyer

Nationwide League clubs have only themselves to blame for the impending cash crisis after failing to accept a reduced settlement from troubled broadcaster ITV Digital, according to a media expert.

ITV Sport became a free-to-air service last night and the pay TV service will be switched off at 7am today as ITV Digital’s administrators decided to pull the plug after not having the cash to pay providers.

The decision to shut down the pay TV services had threatened the coverage of the Division One play-offs but the re-designation not only means the matches will be screened but will now be available to a bigger audience.

The latest developments will not have helped the Football League’s cause in obtaining a quick result in pursuing the full £178.5m (€288.5m) they are owed from the remaining two years of their three-year contract.

However, media lawyer Mark Stephens said the League should have struck a deal with ITV Digital owners Carlton and Granada when they had the chance.

‘‘They waged a vicious PR battle. The much-vaunted legal action hasn’t materialised - and nor will it - and the £75m (€121) it was offered is no longer on the table,’’ he said.

Securing the screening of the two Division One play-off second legs today and tomorrow is but a small consolation to Football League head of communications John Nagle.

‘‘The league is pleased that this will allow fans to see the remaining scheduled-for-broadcast play-off games live on TV.

‘‘We believe this decision signifies an understanding by ITV and its shareholders of the importance and value of sport to television viewers.’’

A statement by ITV Digital’s administrators Deloitte & Touche said: ‘‘Insufficient interest has been shown from prospective purchasers to justify a continuation of the operation.

‘‘The free-to-air channels will continue in the short term while the administrators pursue the best realisation for the value of the assets.

‘‘It is with regret that we take this course of action. We have made strenuous efforts initially to restructure the cost base and latterly to sell the business and assets. But unfortunately there is no appetite in the market for a preservation of the business as a going concern.

‘‘Arrangements have been made for the surrender of the multiplex licences to the ITC. We understand the ITC will issue invitations to re-tender those licences on a more flexible basis on Wednesday, May 1.’’