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25/03/2002
Is ITV Digital's £50m football offer an own goal?
ITV Digital's board was due to meet on Monday to discuss the possible risk of a £500 million legal action by the Football League if the digital broadcaster pulls the plug on televising Football League matches.
The future of ITV Digital looked less than bright when the Football League rejected the troubled broadcaster's downgraded £50 million for televising Nationwide League football games on Friday.
Similarly, the future of some of the leagues less financially viable clubs also hangs in the balance as many have incorporated ITV money into their budgets for the year. Any shortfall in revenues could lead to many clubs going into administration.
The Football League met to consider ITV Digital's offer in Connaught House on Thursday March 21, only for the board to emerge condemning ITV Digital's conduct as "reprehensible". The board pledged to "take this to court if we have to".
In the past week, both ITV Digital and the league clubs have offered robust statements of intent, and are seemingly in intractable positions.
It had been reported that ITV Digital could shut down "within weeks" should the Football League stand by their decision. It has also been reported that the broadcaster has had as few as 1,000 viewers for some games.
The posturing began last week when ITV Digital decided that it had to renegotiate its original three-year contract with the league, claiming that it cannot now afford the original £178 million price tag. This is despite £800 million being spent on the business and an extensive rebranding programme from the channel's previous incarnation as Ondigital.
Millwall chairman Theo Paphitis - whose club would be safe from a potential cash shortfall - angrily dismissed claims by ITV Digital's owners, Granada and Carlton, that the original contract could not now be honoured.
"It's ridiculous that Granada and Carlton, two massive City institutions, would destroy a national game because they want to save a few quid… by only offering £50 million they are merely saving their shareholders a bit of money while risking the future of Football League and English football," he said.
Mr Paphitis went on to issue an appeal to Granada and Carlton: "If you really want to save money, look at what you pay your chief executives and your chairman. They got you into this and made a legally binding agreement with us, but they seem to be spending more time collecting air miles than actually running a business properly."
ITV Digital declined to comment following Wednesday's meeting of the football board.
With around 1.2 million customers, ITV Digital recently appointed accountancy firm Deloitte & Touche to "fundamentally" restructure all its deals – including the £315 million deal for English league football rights.
Last year, Carlton Communications posted £118 million pre-tax profits for the year ending September 30 and Granada Media made a £201 million operating profit for the year.
ITV Digital, www.itv-digital.co.uk
(SP/GMcG)
The future of ITV Digital looked less than bright when the Football League rejected the troubled broadcaster's downgraded £50 million for televising Nationwide League football games on Friday.
Similarly, the future of some of the leagues less financially viable clubs also hangs in the balance as many have incorporated ITV money into their budgets for the year. Any shortfall in revenues could lead to many clubs going into administration.
The Football League met to consider ITV Digital's offer in Connaught House on Thursday March 21, only for the board to emerge condemning ITV Digital's conduct as "reprehensible". The board pledged to "take this to court if we have to".
In the past week, both ITV Digital and the league clubs have offered robust statements of intent, and are seemingly in intractable positions.
It had been reported that ITV Digital could shut down "within weeks" should the Football League stand by their decision. It has also been reported that the broadcaster has had as few as 1,000 viewers for some games.
The posturing began last week when ITV Digital decided that it had to renegotiate its original three-year contract with the league, claiming that it cannot now afford the original £178 million price tag. This is despite £800 million being spent on the business and an extensive rebranding programme from the channel's previous incarnation as Ondigital.
Millwall chairman Theo Paphitis - whose club would be safe from a potential cash shortfall - angrily dismissed claims by ITV Digital's owners, Granada and Carlton, that the original contract could not now be honoured.
"It's ridiculous that Granada and Carlton, two massive City institutions, would destroy a national game because they want to save a few quid… by only offering £50 million they are merely saving their shareholders a bit of money while risking the future of Football League and English football," he said.
Mr Paphitis went on to issue an appeal to Granada and Carlton: "If you really want to save money, look at what you pay your chief executives and your chairman. They got you into this and made a legally binding agreement with us, but they seem to be spending more time collecting air miles than actually running a business properly."
ITV Digital declined to comment following Wednesday's meeting of the football board.
With around 1.2 million customers, ITV Digital recently appointed accountancy firm Deloitte & Touche to "fundamentally" restructure all its deals – including the £315 million deal for English league football rights.
Last year, Carlton Communications posted £118 million pre-tax profits for the year ending September 30 and Granada Media made a £201 million operating profit for the year.
ITV Digital, www.itv-digital.co.uk
(SP/GMcG)
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23 April 2002
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Administrators have confirmed that talks on the sale of ITV Digital's licence to broadcast are ongoing with industry regulators the ITC. With ITV Digital in the hands of administrators, accountancy firm Deloitte & Touche, the future for the firm looks bleak.
ITV Digital's administrators discuss sale with ITC
Administrators have confirmed that talks on the sale of ITV Digital's licence to broadcast are ongoing with industry regulators the ITC. With ITV Digital in the hands of administrators, accountancy firm Deloitte & Touche, the future for the firm looks bleak.
28 March 2002
Troubled ITV Digital goes into administration
An administration order made by Carlton Communications and Granada in relation to ITV Digital has been granted by the High Court in London. Not only does the judgment throw a shadow of the future ITV Digital, but the future of the government's 'Digital Britain' policy and the financial health of many Nationwide League clubs is also in doubt.
Troubled ITV Digital goes into administration
An administration order made by Carlton Communications and Granada in relation to ITV Digital has been granted by the High Court in London. Not only does the judgment throw a shadow of the future ITV Digital, but the future of the government's 'Digital Britain' policy and the financial health of many Nationwide League clubs is also in doubt.
04 April 2002
League to talk with ITV Digital administrators
ITV Digital's administrators Deloitte & Touche have called for a meeting with league chiefs after the Nationwide League's chairman said that he was "committed to entering positive discussions".
League to talk with ITV Digital administrators
ITV Digital's administrators Deloitte & Touche have called for a meeting with league chiefs after the Nationwide League's chairman said that he was "committed to entering positive discussions".
10 June 2002
NTL reveals 'improved' digital package
NTL, one of the UK’s leading broadband services company, have unveiled plans for a significantly improved digital TV product with over 25 new TV channels, 17 new radio channels as well as new look Interactive and EPG services, with more features and enhanced functionality.
NTL reveals 'improved' digital package
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01 May 2002
ITV Digital loses fight for life
The long-expected demise of ITV Digital finally came about this morning as administrators decided they had no option but to break the company up and sell it off piecemeal.
ITV Digital loses fight for life
The long-expected demise of ITV Digital finally came about this morning as administrators decided they had no option but to break the company up and sell it off piecemeal.
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