The move to put ITV Digital into administration has been welcomed by analysts. Lorna Tilbian of Numis Securities told PA: "A black hole is being eliminated. This is the reason why the market is reacting positively to the news."
Talks between the Football League and ITV Digital aimed at renegotiating the three-year deal and wiping £130m off the bill broke down this afternoon.
The league has refused to back down and says it is seeking the full £178m it is owed for the final two years of the £315m contract with ITV Digital.
ITV Digital has since been placed into receivership, with accountants Deloitte & Touche appointed as administrators, and there is serious concern that it may be followed by a handful of league clubs.
Bradford City chairman Geoffrey Richmond said: "It's a major worry and one I've seen coming for some months. There has been some exaggeration of the number of clubs that could fold. Clubs are remarkably resilient, as you've seen over the years. But there's no doubt that the clubs already on the borderline could be pushed over."
The league's plans to sue the companies for the outstanding sum, plus loss of earnings amounting to £500m, could take years -- longer than some of the smaller clubs such as Bradford will be able to last without the funds.
However, Richmond defended the league's part in the fall of ITV Digital, saying that the football could not be blamed for the lack of subscribers to the station.
According to Richmond: "The Football League has been much maligned over this. But it isn't the product to blame; there just hasn't been the number of subscribers. It's impossible to predict the short-term outcome of this but I'm desperately hoping there will be a quick resolution."
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