League ask watchdog to take action

The Football League is to raise the stakes in its £315 million bitter row with ITV Digital and its owners Carlton and Granada.

It will ask the industry watchdog to consider stripping the two parent companies of their licences. The move will escalate the stand-off to new heights after ITV Digital refused to pay the remaining £178m of the contract for the 72 Nationwide clubs.

League chief executive David Burns is preparing to write a letter to the Independent Television Commission asking it to use its powers to investigate whether Carlton and Granada have breached its rules.

The ITC regulates commercial television and has the power to take licenses away from TV companies in financial difficulty.

Carlton and Granada have spent more than £800m on the digital TV venture. They want to pull the plug and the decision to put ITV Digital into administration could be taken at a meeting today.

The League has rejected an offer of just £50m and threatened to bring a £500m court action against Carlton and Granada if they axe the channel. Now Standard Sport can reveal that the League is also looking at getting the ITC involved. Before granting licenses to TV companies the ITC examines whether the executives in charge of those companies are "fit and proper" and investigate the organisation's "financial fitness".

On that basis the League believes Carlton, Granada and ITV Digital should lose their licenses. Chief executive David Burns said: "We believe this is probably something the ITC should now be looking at. They should be asked the question: Are these people fit and proper people to be holding a license."

Meanwhile it is believed some First Division chairmen are split on the prospect of a costly and lengthy court battle with ITV Digital. Standard Sport understands a small number of chairmen from Division One are willing to forego the final payment of £89m in the third year of the contract, which expires in 2004, provided they agree to honour this year's payment of £89m.

But Burns denied talk of a split adding: "I have spoken to all First Division chairmen and have had enormous support. There's no reason to believe Carlton and Granada aren't liable for the money in full."

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