Soccer chiefs turn up the heat

SHAREHOLDERS in Carlton and Granada are being kept guessing after the Football League returned to the attack on Tuesday. It threatened a £500m lawsuit for damages in the bitter dispute over the £180m which ITV Digital owes to clubs for the rights to screen matches.

Earlier, the League had appeared to soften its stance by saying it was willing to negotiate after a three-hour meeting of clubs. It is still keeping its option of a compromise open.

The League has turned down the £50m offered by ITV Digital for the remainder of the contract and threatened to sue its parents, Carlton and Granada. The clubs still want ITV Digital to stump up the first payment of £89.25m, due in August. But the League conceded that it would discuss the second instalment, due the following August, if it can claw back some of the TV rights. 'This gives some flexibility,' said League chairman Keith Harris.

ITV wants the League to slash the cost of the rights for the Nationwide League and the Worthington Cup because games were not attracting a large enough audience to make a profit. It was put into administration last week after failing to reach a deal.

Harris added that the League will sue Carlton and Granada if the pair do not agree to these general terms. Any case will turn on whether the media companies promise to guarantee the payments by ITV Digital. Many believe the situation is ambiguous enough to lead to a lengthy and expensive court case. The City welcomed the collapse of the cash-haemorrhaging ITV Digital. Carlton (up 1/2p to 272p) and Granada (up 3 1/4p to 140 1/4p) are thought likely eventually to liquidate the broadcaster.