Football League awaits ruling on collapsed TV deal

The outcome of the Football League’s High Court bid to sue its former legal advisers over the collapsed £140m (€204m) television deal with ITV Digital will be decided today.

Mr Justice Rimer is giving his ruling on what is believed to be one of the largest professional negligence claims against a firm of solicitors.

The League, which represents teams in the lower three divisions outside the Premier League, sued Hammond Solicitors – who at the time were known as Edge Ellison – over their failure to secure a payment guarantee from ITV Digital’s backers Carlton and Granada.

The pay-TV firm collapsed in early 2002 because it could not afford payments to the Football League.

Several clubs suffered serious financial problems after the television company’s collapse. They had invested in players and ground improvements that they could not afford when the television money dried up.

At a hearing in February this year, the League’s counsel, Justin Fenwick QC said his client had suffered a loss of £140m (€204m). The League is seeking this amount in damages plus interest, taking the figure to nearer £150m (€218m).

OnDigital was launched in 2001 to challenge BSkyB’s coverage of sport in Britain, particularly soccer, but collapsed after it was rebranded ITV Digital in 2002.