We'll sue, say soccer bosses

12 April 2012

THE Football League will press ahead with legal action against Carlton Communications and Granada if there is no settlement in the crisis over ITV Digital, the League said today.

The hardline statement followed talks between League chiefs and representatives of the 24 First Division clubs in London this afternoon.

A statement from the League said it would start proceedings if necessary against Carlton and Granada, parent companies of ailing ITV Digital, for the £179m owed plus damages and costs, and the claims would be expected to be in the region of £500m.

The statement said: 'The Board of the Football League will continue to engage Carlton Communications and Granada to secure a settlement of the current dispute. This would involve an assurance that the £89.25m due to the Football League in August this year will be paid.

'We are prepared to discuss the method for the payment of the final tranche of £89.25m in conjunction with the future of our media rights.'

The statement, released after the meeting in London, went on: '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 be expected to be in the region of £500m.

'If the ITV Sport Channel is closed down, the Football League will consider a number of options for licensing its products - the most popular Football League in Europe - to other media platforms over the medium term. At this stage, no alternatives would be ruled out.'

Football League chairman Keith Harris said: 'After a thorough discussion of all the issues relating to this contract, 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 renege on their commitments or cause irreparable damage to professional football clubs and their local communities.'

David Burns, the League's chief executive, said: 'The First Division clubs are speaking with one voice. Their mandate to the executive is clear. Our strategy will continue to be pursued remorselessly until we have achieved a satisfactory conclusion to this highly regrettable state of affairs.

'The Football League will be advising the regulatory authorities concerning the obligations and conduct and responsibilities of the directors of Carlton, Granada and ITV Digital.'

The tough statement came after suggestions that Football League clubs might accept a £120 million 'golden goodbye' from ITV Digital. Bradford City chairman Geoffrey Richmond suggested legal proceedings against the company might be dropped if a settlement for that figure was offered to First Division clubs.

He said legal action was a 'last resort', adding that 'the majority of Football League clubs' would accept a golden goodbye.

Many First Division and lower League clubs face an uncertain future after ITV Digital went into administration last week with £179m owing from its contract.

It has subsequently offered £50m to clubs for the remaining two years of the deal after struggling financially in the face of an advertising slowdown.

But Mr Burns said Carlton and Granada had made 'no approach' to clubs and the claims were 'intended to put leverage upon the clubs'.

He added: 'No one is going to be foolish enough not to look to compromise if there is a deal to be made and we are open to any offers that are made as long as they are sensible and reflective of the contractual agreements with Carlton and Granada.'

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in