Football League may bid for ITVD

THE FOOTBALL LEAGUE is preparing a bid to buy ailing broadcaster ITV Digital. League chief executive David Burns revealed today it had expressed a formal interest in the network.

Any bid from the League would be with the backing of a major broadcaster. Sky has already denied any interest but Channel Five and the BBC have not ruled themselves out of the running.

The proposal would see the League essentially setting up its own football TV channel in return for a share of any future profits. The other channels carried by ITV Digital would become the responsibility of the League's bidding partner.

Burns told the London Evening Standard: 'We have written some time ago to the administrator saying that if you decide to put this business up for sale we may have an interest in acquiring it in conjunction with a third party, another broadcaster.'

Nick Dargan, the administrator from Deloitte & Touche handling ITV Digital, announced on Monday night that attempts to restructure the company had failed and that he was now in talks with the Independent Television Commission about fast tracking an auction of the company's assets. However, after discussions with its lawyers Lawrence Graham, the League is confident that Monday's developments do not yet constitute the start of the sell-off.

Burns said it is another tactic by ITV Digital's owners, Carlton and Granada, to put pressure on the League and its 72 clubs which are facing financial crisis unless a deal can be reached over the £178.5m they are owed as part of their TV rights deal.

Another statement is expected from Deloitte & Touche on Thursday. If that signals the start of the sale the League might then look to strengthen its interest in buying ITV Digital's terrestrial digital licence and its 1.2m subscribers. Until then the League is focusing its efforts on getting back the £178.5m it is owed.

Burns added: 'It has been reported that the business has been put up for sale. But upon closer analysis of the administrator's statement all it says is that they are preparing to put the business up for sale. All they said on Monday is that the administrator was going to have a meeting with the ITC.'

The League also confirmed today that Monday's move does not constitute a breach of their £315m, three-year deal. That means plans to televise the League's play-off semi-finals and finals on the ITV Sport channel and the ITV terrestrial network still stand.

Meanwhile, the Government reaffirmed that it will not bail out the clubs if ITV Digital eventually goes into liquidation. Tessa Jowell, the Culture, Media and Sport Secretary, said: 'Football recognises that they have got to help the clubs navigate this crisis.'

Since ITV Digital said it wanted to renegotiate its contract last month two Football League clubs have applied to go into administration and the League estimates that at least a further 20 could follow. The Government's plans for digital TV may have also been derailed. Ministers hoped subscriber numbers would be sufficiently high by 2010 to allow the analogue service - the way most homes still receive their pictures - to be switched off.

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