English clubs sue for lost TV revenue

LONDON (AP) -- The Football League filed a lawsuit Tuesday against the parent companies of failed broadcaster ITV Digital.

The league, which represents 72 teams in the first, second and third divisions, is seeking 178.5 million pounds (US$258.8 million) that ITV Digital owes the clubs.

The league, which claims that company owners Carlton Communications PLC and Granada Media PLC were liable for the broadcaster's debts, filed suit against them in London's High Court.

ITV Digital agreed in 2000 to pay the league 315 million pounds (US$456.8 million) for the rights to broadcast games for three years. However, it ran out of cash and ceased most of its operations May 1. The league is suing for the amount that remains to be paid under the original contract.

The collapse of ITV Digital has threatened to put dozens of clubs out of business. Many have already spent the funds they were expecting from the company, and the league had warned repeatedly it might sue Carlton and Granada for the money.

"From the outset of this dispute, the Football League has made it abundantly clear that it will, if necessary, use all options to pursue Carlton and Granada for monies outstanding from our broadcasting agreement," league chief executive David Burns said.

Burns said the chairmen of Carlton and Granada had refused to enter into talks with the league and that it had decided to sue the two companies as a result.

The soccer league said it also was preparing a claim against Britain's ITV television network and planned to file for damages exceeding 500 million pounds (US$725 million) with ITV Digital's liquidators once they were appointed.

ITV Digital discontinued its pay-TV programs earlier this month as a first step toward its liquidation. Its financial administrators, accounting firm Deloitte & Touche, are seeking a potential buyer for the business.

 

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