March 27 2002

ITV Sport Channel

Nearly half the Nationwide League clubs could fold after the news that ITV Digital has gone into administration.

If the firm does go bankrupt, clubs like Palace are set to lose millions of money owed as part of the TV contract signed last year.

Many clubs who are on the brink of going bust themselves, have relied on the TV money to stay afloat.

Gillingham chairman Paul Scally said this week Gillingham could lose £3m, while Millwall's Theo Paphitis said his club will lose 20 per cent of their revenue.

The excessive £315m cost of the rights for the Nationwide League became too much for the company to bear, with low audience figures and lower than expected advertising income.

ITV Digital owes £180m to the Football League and has offered £50m. The league had threatened to sue the ITV Digital and owners Carlton and Granada for £500m.

Mr Justice Etherton has granted an administration order for six months while the two parties negotiate a deal.

But Palace chief Simon Jordan said the clubs should not panic as there is plenty of time to negotiate.

He said: "The fact that they have gone into administration is no surprise. We have an agreement with ITV Digital and the bottom line is that we are owed the money.

"Now what needs to be known is whether Carlton and Granada are or are not obligated through ITV Digital. If so there needs to be a commercial discussion and we need that to happen before we get lawyers involved.

"Administration buys you time. To get you into a position where you can stabilise. At the moment their offer is £50m and that will not get any lower.

"There is time to negotiate, at this moment in time nothing is desperate and we have got from now until September to resolve the problem."

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