League prepares ITV Digital bid

The Football League is preparing a bid to buy ailing broadcaster ITV Digital.

League chief executive David Burns revealed today it had expressed a formal interest in the network.

Any bid from the League would be with the backing of a major broadcaster. Sky has already denied any interest but Channel Five and the BBC have not ruled themselves out of the running.

The proposal would see the League essentially setting up its own football TV channel in return for a share of any future profits. The other channels carried by ITV Digital would become the responsibility of the League's bidding partner.

Mr Burns told the Evening Standard: "We have written some time ago to the administrator saying that if you decide to put this business up for sale we may have an interest in acquiring it in conjunction with a third party, another broadcaster."

Nick Dargan, the administrator from Deloitte and Touche handling ITV Digital, announced last night that attempts to restructure the company had failed and that he was now in talks with the Independent Television Commission about fast-tracking an auction of the company's assets. However, after discussions with its lawyers Lawrence Graham this morning, the League is confident that yesterday's developments do not yet constitute the start of the sell-off.

Mr Burns says it is another tactic by ITV Digital's owners, Carlton and Granada, to put pressure on the League and its 72 clubs who are facing financial crisis unless a deal can be reached over the £178.5 million they are owed as part of their TV rights deal.

Another statement is expected from Deloitte and Touche on Thursday. If that signals the start of the sale the League might then look to strengthen its interest in buying ITV Digital's terrestrial digital licence and its 1.2 million subscribers.