Football League waits for verdict on ITV Digital

The League is committed to recovering its money

The Football League will hear by next week whether it has been successful in a battle to recover nearly £200m from the owners of collapsed pay TV service ITV Digital.

The High Court is considering a judgement as to whether Carlton and Granada should honour the remaining part of their failed subsidiary's contract.

ITV Digital went into administration in April just one year into a three-year broadcast deal with the League, owing it £178.5m in unpaid fees.

The case centres on whether the contract relating to ITV Digital's £315m purchase of broadcast rights to the lower division football games guarantees payment.

'No liability'

Granada and Carlton reject liability for ITV Digital's debts, arguing that the final contract they signed did not include an undertaking to meet its financial commitments.

However, an original bid letter sent to the League in early June stated that "ONDigital and its shareholders guarantee all funding to the Football League".

A High Court judge will decide whether the guarantee still stands and whether the contract "makes allusions" to the bid letter, said a spokesman for the League.

A decision is expected on Friday or early next week.

New dispute?

Speculation is mounting that if the judgement goes against the League, it will consider taking legal action against the law firm that helped it draw up the contract.

That law firm, Edge Ellison, is not representing the League in its current action against Granada and Carlton.

The League spokesman declined to comment "at this stage" on any possible action against Edge Ellison, now known as Hammond Suddards Edge.

"We are still waiting for the verdict," he said.

The League is currently using the law firm Lawrence Graham in its legal dispute with the ITV Digital owners.

A spokeswoman for Lawrence Graham said action against Edge Ellison is "not the priority at the moment".

Calls to Hammond Suddards Edge were not returned.