Football loses another £35 million

Football's fragile finances suffered a new setback today as cable giants NTL told the Football League it could not afford to pay the £35 million it owes as part of a 20-year internet deal.

With the League already reeling from the collapse of ITV Digital and the withdrawal of sponsors Worthington, today's news will only add to the growing uncertainty.

The League has just signed a new £95m deal with Sky to fill the void left by ITV Digital, but most clubs are still predicting an uncertain future.

NTL, who are undergoing a massive restructuring operation in an effort to cope with crippling debts, approached the League today to ask if it could re-negotiate the terms of its internet venture.

The struggling media company has already paid £30m of its £65m obligation but has now asked the League to waive the remaining fee it has to pay. A £5m instalment is due on 19 July but that is not going to be paid.

The League's under-fire chief executive David Burns and chairman Keith Harris must now hold an emergency meeting with the 72 club chairmen.

Both NTL and the League say they want to continue the 20-year venture set up in June,

2000. Under the terms of the deal the two sides set up a company called Football League Premium TV (FLPTV) to run club websites.

In return for payment of £65 million over five years, NTL were able to run every club's internet operation. They also loaned FLPTV £20 million to get the venture started and agreed to give them another £20m. NTL are offering to write off that debt if the League agrees to waive the remaining £35 million it owes in rights.