D-Day for ITV Digital

Football league clubs are owed £178.5m

Administrators for stricken broadcaster ITV Digital are set to announce within hours whether it is to be sold off or saved.

Last Monday, the administrators asked the High Court for an extra week to renegotiate a key contract with the Football League while preparing ITV Digital for a sale.

On Monday, administrators for ITV Digital said no deal had been struck and it was to make a statement later in the day on the future of the company.

It is widely expected that the business will be put up for sale, although there is an outside chance the administrators may announce a last-minute deal to save the service.

Heavy losses

ITV Digital went into administration last month owing £178.5m to the League.

Talks between the two sides were held last week at the request of administrators, but it is believed that no progress was made.

The hope is that, while ITV Digital has racked up heavy losses, its 1.26 million subscribers will prompt another broadcaster to buy at least some of its assets.

But analysts have warned that most of the potential buyout candidates are either doing nicely as they are, or up to their ears in their own debt problems.

"BSkyB has ruled itself out, and the cable companies are hardly in a position to make an acquisition," said Graham Lovelace, head of the media consultancy Lovelacemedia.

The Football League has warned that if it does not receive the money owed under its three-year contract with ITV Digital, many member clubs face an uncertain financial future.

It has threatened to sue ITV Digital's backers, broadcasters Carlton and Granada, for £500m if the money is not paid.