League welcomes digital decision

The Football League today welcomed the decision to award the digital television licences freed up by the collapse of ITV Digital to the BBC and Sky.

But today's announcement from the Independent Television Commission will not mean an instant solution to the League's money worries.

Carlton and Granada still owe the League's 72 member clubs £178.5 million for the outstanding two years of their three-year £315m TV rights deal.

The two sides are due to meet in court on 26 July for the start of a trial which will decide whether the ITV owners must pay the League back in full.

Meanwhile, the League is in talks with the BBC, Sky and the ITV network (the terrestrial platform not the digital arm which is in liquidation) about selling on its rights.

The decision to award the digital terrestrial broadcast licences to the BBC and Sky might encourage the two companies to launch a joint bid.

The League was holding a board meeting today to discuss potential bidders for the TV rights, which at the moment have no home. A decision must be taken in the next month, ahead of the new season, and the 1 August date when the next £89m instalment was due from Carlton and Granada. But the League is relieved the two companies' joint bid for the licences was rejected by the ITC.

A spokesman said: "The League was extremely perturbed that a company given the licence to run a digital terrestrial service only to close it down should be given the opportunity to run it again. We are pleased the ITC shares our view."