Clubs consider TV cash deal

ITV Digital: Collapsed owing the Football League £179m

Football League chiefs have indicated they may accept a compromise over TV rights cash as they consider legal action against collapsed broadcaster ITV Digital.

The broadcaster - which is owned by Carlton and Granada - was put into administration last week and says it can not afford to pay the £178m it owes for football broadcasting rights.

But with football chiefs warning that many clubs are facing collapse, Bradford City chairman Geoffrey Richmond said a compromise deal of about £120m could be possible.

However, the Football League said it had no indication that ITV Digital's backers are willing to offer more than the £50m they put on the table prior to its collapse last week.

No-one is going to be foolish enough not to look to compromise if there is a deal to be made

Chief executive of the Football League David Burns

"Legal proceedings would be the last, not the first, resort," Mr Richmond told the BBC.

"The feeling amongst the clubs is that a settlement to the north of £100m would be the type of deal we would be interested in."

He said the "vast majority" of clubs would be happy with £120m, but stressed they believed they had a very strong legal position to press their claims against ITV Digital's backers.

Chief executive of the Football League David Burns told BBC Radio 4's the organisation had not heard from ITV Digital's backers regarding a compromise deal.

Open to offers

But he added: "No-one is going to be foolish enough not to look to compromise if there is a deal to be made, and we are open to any offers, as long as they are sensible and reflect the contractual value we have with Carlton and Granada."

Geoffrey Richmond: "Strong legal position"

Carlton and Granada have already agreed to honour £20m owed to Premiership clubs through a rights deal negotiated last year jointly with BSkyB and NTL, the Financial Times newspaper said.

But whereas the Premiership is believed to have ensured Carlton and Granada underwrote ITV Digital, the media giants claim they did not sign "parent company guarantees" for the Football League contract.

ITV Digital signed its £315m contract with the Football League last year in a drive, through enhanced sports coverage, to boost subscriber numbers.

While the first payment on the contract was made as due, ITV Digital owes £89m this August and £89m in August 2003.

Courts which last week placed ITV Digital into administration are set on 15 April to hear the results of efforts to save the firm.

A successful hearing could see ITV Digital, which collapsed after swallowing £800m of Granada and Carlton cash, emerge from administration.