ITV Digital row goes to extra time

A DEAL may be coming into sight in the ITV Digital dispute with the Football League. Joint owners Carlton and Granada agreed in the High Court to give the troubled pay-TV service another week to reach a truce over the £178.5m it owes the League for the rights to screen matches.

Carlton and Granada had threatened to put ITV Digital into liquidation last week. Now, there are signs the two sides are coming together. League chief executive David Burns said he planned to contact the two chairmen, Granada's Charles Allen and Carlton's Michael Green.

It is very delicate because Granada and Carlton do not want to admit liability for ITV Digital, now in the hands of administrator Nick Dargan and bleeding £1m a day. Burns said: 'Does it really matter who calls whom, so long as we get dialogue going?'

The ITV Digital owners are offering the League £62m for the remaining two years of the three-year £315m broadcasting contract. They also made a £74m offer with strings attached, including a further year's media rights. Their initial offer was just £25m, later raised to £50m, suggesting their negotiating stance is not rigid.

The League has so far rejected all the offers. But, with analysts estimating the outstanding rights are worth just £10m today, pressure is growing on the League to take the money. Otherwise they face a drawn-out legal battle, which could bankrupt some small clubs. Agreement hinges on the League's 72 club chairman, who meet on Thursday in Manchester.

Kingsley Wilson at broker Investec said: 'Getting £200m for two years of football that is not even Premier League sounds good to me.'

If a deal can be reached, a slimmed-down ITV Digital might be viable. Granada slipped 1/2p to 123p, Carlton 5p to 239p.