ITV Digital collapse brings football crisis

March 28, 2002

Accountants have been called in to run debt-ridden broadcaster, ITV Digital, and are beginning the process of trying to get the company back on its feet.

The firm was put into administration on Wednesday because it could no longer afford its multi-million pound contract with the Football League.

Up to 30 football clubs say they could also go out of business if the broadcaster fails to honour its £315m contract for Nationwide League and Worthington Cup matches.

League chairman Keith Harris threatened to sue ITV Digital's owners, Carlton and Granada, for £500m unless they agreed to pay-up.

Culture Secretary Tessa Jowell insisted the decision to place ITV Digital into administration was ‘not the end of digital terrestrial television in the UK’.

But Britain's biggest cable company NTL, has also said it may run out of money to run its business while it refinances its debts.

To turn ITV Digital into a viable business administrators need to cut costs - and the £178m outstanding on its football contract is an obvious target.

Before it went into administration the broadcaster, hit by low audiences and falling advertising revenue, said it could only come up with £50m.

The administrators hope they can persuade the 72 clubs waiting for the money to accept the offer.

ITV Digital has already axed 600 staff but said no decision had yet been made about the remaining 1,800 employees.

From BBCi

Copyright (c) 2000-2002 Sue Kelly