ITV Digital may play ball with league

April 1, 2002 Posted: 6:33 AM EST

British football clubs want more money for TV rights

LONDON, England - The owners of cash-strapped ITV Digital may offer more money to the Football League to settle a dispute over television rights.

Granada and Carlton Communications are considering offering the league £70 million ($100 million) for the remaining two years of ITV Digital's three-year contract to broadcast games, The Sunday Times reported.

Last week, the two companies placed ITV Digital in administration after it failed to reach a payment agreement with the league, which represents 72 football clubs in the UK. The court-ordered administration gives the company temporary protection from its creditors while it attempts to restructure its finances.

Under the terms of the three-year agreement signed eight months ago, ITV Digital was to pay the football league a total of £315 million for the broadcast rights to the games.

As of last week, the company had paid only £135 million and said it could only afford another £50 million for the remainder of the contract. The clubs said they could not afford to accept the offer.

However, it now appears the company is willing to increase its offer, and talks have resumed.

"Don't forget, (the clubs) already have £130 million of our money. We could give another £70 million and they would get £20 million from someone else for the rights,'' The Times quoted an ITV Digital director as saying.

The newspaper said ITV Digital is willing to give up its TV rights as part of a settlement.

The British government has said it would not provide any financial assistance to the clubs and urged both parties to work out an agreement themselves.

The court-appointed administrators have "lines open'' with the league and will provide an update on the talks early this week, Reuters quoted sources as saying. They said the clubs may be more willing to reach a compromise deal if they believe the government will not come to their rescue.

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