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The ITV Digital affair, which saw clubs getting into financial trouble after spending money which wasn't then available, has ended with a £4 damages award for the Football League, far outweighed by their liability for costs. The Football League sued its former solicitors for £140m, but the outcome was in large part a victory for the advisers. The case centred on work down by Edge Ellison, now part of Hammonds (a commercial law firm) for the league during its TV rights deal with ITV Digital six years ago. ITV Digital, a joint venture between Carlton Communications and Granada, collapsed in 2002. The league had accused the solicitors of breach of duty and failing properly to discharge their obligations because no security was obtained for ITV Digital's liabilities. However, Mr Justice Rimer ruled in the High Court that although Edge Ellison had breached the duties they owed the league in two respects, neither caused any substantial damage. The judge awarded £2 in each instance and ordered the league to pay 90 per cent of Hammonds' legal costs. The Football League admitted that it did not consider the award a successful outcome. League chairman Lord Mawhinney, a former Conservative cabinet minister, said, 'We are obviously disappointed by this outcome. Subject to considering possible grounds for appeal, the league will draw a line under this matter and move on.' The league no doubt saw the ITV Digital deal as an attempt to boost the funds of its clubs, who were seeing a reduced income from transfers to the Premiership, but it had the opposite effect.
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