League poised to sue Carlton and Granada

LONDON - The Football League is to press ahead with plans to sue Carlton Communications and Granada for £500m after they continued to refuse to pay the remainder of a £315m deal for the rights to televise league matches.

Carlton and Granada have so far stood up to the league, saying that they are not liable for ITV Digital's failure to pay the outstanding £178m because they had never signed a long-form contract -- the part of the deal that outlines the responsibilities of Carlton and Granada as parent of ITV Digital.

The league has accused Carlton and Granada of deliberately avoiding signing the long-term contract, so that they could not be held responsible for ITV Digital's commitments.

Yesterday, at a meeting between the league and the chairmen of first division clubs in London, Football League chief executive David Burns said that the organisation had "reasonable belief" that Carlton and Granada had decided to close ITV Digital, and avoid paying the league its money, as early as October 2001.

Carlton and Granada have so far offered the league £50m for the remaining two years of the contract, a £130m reduction on the original contract.

The league, meanwhile, has said it will accept £89.5m in August and a further £89.5m in August 2003, as agreed in the original terms of the deal.

Neither side appears to be able nor willing to budge on the deal and the league has said it has been advised by its lawyers that a court hearing could be set before the next payment is due in August.

Yesterday, it was reported that Carlton and Granada would honour a £20m deal with the Premier League for the pay-per-view rights to Premiership matches, despite reneging on the deal with the Football League.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .

Topics

Claire Billings, recommends

ITV Digital

Read more

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content