TV deal saves soccer clubs

The Football League today struck a £95 million TV rights deal which should save up to 30 soccer clubs from bankruptcy.

Although the four-year deal is nowhere near the £105 million a year the League was receiving from ITV Digital, it will secure the competition's future.

When ITV Digital collapsed at the end of last season, it was predicted up to 30 Nationwide clubs could go out of business. The teams - which include QPR, Wimbledon, Brentford and Leyton Orient as well as some top First Division outfits - were facing the prospect of no TV income for the next two years.

Many had already spent the promised cash from ITV Digital, which led to warnings from the League itself that up one third of their clubs faced bankruptcy.

Now the clubs should have their futures secured for at least four years. Football League chairman Keith Harris said: "This is great news and removes major uncertainty that threatened many of our clubs. They are now able to budget for the future with some certainty. In Sky we have a partner that we can completely trust."

In another boost for the ailing clubs, the BBC is thought to be close to agreeing a separate deal for terrestrial live and highlights rights for further matches.

The contract with Sky was signed early this morning - the day after the Independent Television Commission announced it was awarding the digital terrestrial licences freed by the collapse of ITV Digital to Sky and the BBC.

It is understood that the Sky deal is for live pay TV matches on its existing sports channels alongside Premiership matches. The BBC side of the deal will be free to air.

The move comes three weeks before the League is due to start its High Court battle with ITV Digital's former owners Carlton and Granada.

The League is claiming the companies must pay the £178.5million owed for the remaining two years of the now defunct contract. As a result of the new deal and the expected £5million a year from the BBC, the League will now be trying to reclaim the difference of £128.5million.

The Sky deal means it now has a foothold in every aspect of English football. It holds the live rights to the Premiership, all England qualifying matches and friendlies and holds joint rights with the BBC for the FA Cup.

The move is a further blow to ITV which now has only the Premiership highlights package.