TV chiefs defend football claims

TV GIANTS Carlton and Granada are claiming they neither knew about nor authorised a key bid document guaranteeing their fateful £320m ITV Digital deal with the Football League to screen Nationwide League matches.

The remarkable statement forms the basis of their legal defence that they did not underwrite the contract. ITV Digital went into administration in March owing £1.2bn after admitting that it could not afford to pay the £178.5m it owed the League for the remaining two years of the contract. The League is seeking to recover the money and has always claimed that, as the parent companies of ITV Digital, Carlton and Granada guaranteed the deal, citing as evidence their initial bid document.

This stated: 'Ondigital [as ITV Digital was then named] and its shareholders will guarantee all funding to the Football League.' But during preliminary hearings in the High Court, Carlton and Granada denied that they authorised this statement.

Charles Flint QC, for the Football League, said: 'It struck us as a rather surprising line of defence, given that the board of directors of ITV Digital, which authorised or must have authorised the bid, was heavily controlled by the shareholders' nominees and included the chairmen of both companies.'

Granada boss Charles Allen and Carlton's Michael Green were also directors of ITV Digital, whose huge losses were a constant drag on Carlton and Granada shares. The Football League last week sold the rights to its matches to BSkyB for £95m over four years. It will continue its fight against Carlton and Granada to reclaim the difference.