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Many league football clubs are understood to be fighting to stay afloat after the Football League walked away from negotiations yesterday.

The league is threatening to sue ITV Digital shareholders, Carlton Communications and Granada, for £500m to cover the outstanding £178m ITV Digital owes on its £315m contract to broadcast Nationwide League and Worthington Cup matches, plus loss of earnings from lost TV coverage.

In a statement, Jowell said negotiations with ITV Digital's creditors, including the Football League, would be handled by the broadcaster's administrators Deloitte & Touche.

She said: "It is in the interests of football to play a full part in these negotiations if they are to achieve the best outcome for the game and the clubs.

"This is a testing time for football. I urge the Football League to keep the negotiations going. While everyone is still talking, there is hope this can be settled."

Meanwhile, shadow culture secretary Tim Yeo has lambasted the government for its handling of the ITV Digital saga.

In a statement, he said: "The government should have eased the problems of ITV Digital by giving a stronger lead and clearer timetable for the digital switch-over and by turning up the strength of the digital signal.

"If anything is to be salvaged, the Football League must realise that what ITV Digital paid for the television rights was unrealistic and that a compromise must now be reached.

"A successful digital switch-over depends on a viable digital terrestrial platform. If ITV Digital fails this will be hard to achieve."

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