ITV Sport could switch off

Renegotiating ITV Digital's deal would damage Lincoln

A senior executive with ITV Sport digital claims the ailing channel could fold in seven weeks unless Football League clubs accept less money.

The League claims more than a third of its 72 members will suffer bankruptcy if ITV Sport default on their original £315m, three-year contract.

ITV Digital's owners, Granada and Carlton Communications, say they need to drastically reduce the next instalment of £89.25m due at the beginning of August, with the same amount due in August 2003.

There is now a very, very real threat of ITV Sport closing at the end of the football season

ITV Sport senior executive

But the Football League has rejected ITV Sport's offer of £50m over the next two years and will go the courts to try and get its money, even if ITV Sport is forced to close.

A senior executive with ITV Digital, which runs the ITV Sport channel, said: "There is now a very, very real threat of ITV Sport closing at the end of the football season, which is now only seven weeks away.

"We feel we have made a fair and realistic offer to the Football League which would be in the interests of all parties to accept."

Lincoln City are typical of those lower division clubs who could be forced out of business.

"We are talking about one of biggest media players. They ought to get their fingers out and sort it out

Lincoln chairman Rob Bradley

Imps chairman Rob Bradley said: "We are very reliant on this money - it is money that has been budgeted for.

"We have a new board at Lincoln paying off back tax and back debts and we are having a poor season.

"The supporters are disappointed but I tell them at least we have a football club.

"This, though, is the classic straw that could break the camel's back," Bradley told BBC Radio Five Live.

Bradley supports the Football League's actions in taking a stand against ITV Digital.

He said: "I back what the league's board has done.

"It is too early to talk of taking a smaller amount from ITV Digital.

"We are talking about one of biggest media players. They ought to get their fingers out and sort it out."

Meanwhile, ITV are drawing up contingency plans about where to screen Champions League games on Tuesday nights if ITV Sport is closed.

One possibility is to sell them through a sub-licensing agreement to bitter rivals BSkyB.

Our intention is to make sure that contracts are honoured and matches are shown

Uefa communications director Mike Lee

Another possibility is to show them on ITV 2, but either solution would make Champions League games accessible to BSkyB and cable television customers.

Any new sub-licensing agreement involving Champions League matches would have to be sanctioned by Uefa, who are monitoring events closely.

Uefa communications director Mike Lee confirmed: "If the situation changes and there is a proposal for a new sub-licence to show the Tuesday games, that would have to be discussed with and agreed by Uefa.

"ITV are a very important partner and we are being kept informed of developments.

"Our intention is to make sure that contracts are honoured and matches are shown."

Premiership clubs will also be watching developments closely.

The Premiership's £1bn contract with BSkyB expires in two years' time and clubs may have to resign themselves to accepting a considerable fall in the value of the new contract.