Football League rejects new £60m offer from ITV Digital

LONDON - The Football League has flatly rejected a new 拢60m offer from ITV Digital and is continuing to hold out for the full 拢178m it is owed.

The offer is 拢10m higher than ITV Digital's original 拢50m offer to the league to cover the remaining two years of its three-year 拢315m TV rights deal.

The latest offer was faxed to the league by City law firm Clifford Chance, which is acting for ITV Digital's administrators Deloitte Touche.

According to reports, the new offer included a condition stipulating that ITV Digital owners Granada and Carlton Communications are released from any threat of legal damages. The league has been promising to sue the two ITV companies for 拢500m in compensation for ITV Digital reneging on the deal.

The move follows developments earlier today when the Football League stepped up its war against ITV Digital's owners by complaining to the Financial Services Authority about the behaviour of Carlton just before ITV Digital was placed into administration.

The league says it has strong evidence that Carlton provided misleading information to the London Stock Exchange, which conflicts with information supplied to the Securities and Exchange Commission in the US.

In a submission to the FSA, the league will include a statement by Carlton and Granada to the London Stock Exchange. The statement, dated February 12 2002, was entitled "ITV Digital on track". It included the statement: "ITV Digital's latest subscriber figures show growth to the end of December, continuing in line with the objectives announced in April 2001."

However, in a separate filing to the SEC on March 28 2002, Carlton said: "Since December 2001, the operating performance of ITV Digital deteriorated as significant competition in the retail market persisted, alongside general lower levels of new digital television subscriber sales."

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