ITV Digital applies for Administration

27 March 2002

Just to make the money pressures on a number of clubs worse still, the Board of ITV Digital plc is applying to the High Court for an administration order to be made. The related company ITV Digital (Services) Limited is making a similar application.

The move follows the breakdown of their negotiations with the League with regard to a reduction in payments for their sponsorship next season. The original figure due for payment in August was £180 million, but the League's latest proposal was that they would accept £90 million with further negotiation to be carried out on the remaining future payments. ITV Digital's response was that they could offer no more than £50 million.

Albion were set to receive some £3 million of the original payment, presumably reduced to half that if the League's proposal had been accepted - but could now stand to get nothing. Fortunately, with the Koumas deal just falling through and the Club's finances in good shape, this will present less of a problem to us than it does to many others who could stand to go bankrupt if they fail to receive the TV sponsorship money. For most clubs, this cash represents the largest source of income - ahead of commercial income and gate receipts - and in many cases it has already been spent. If this situation had arisen three years ago, we hate to think what might have happened at Albion.

Previous Stories:

  25 March 2002:  Koumas agrees terms!

  25 March 2002:  Coventry sell-out

  21 March 2002:  Baggies get the points

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