Last summer we interviewed a confident David Burns, the Football League's chief executive. Since then his member clubs suffered the collapse of ITV Digital, while rumours persist that Celtic and Rangers will be asked to move south. So we went back to find out how he viewed the situation after a turbulent season
The Football League has called on the government to intervene in the ITV Digital dispute. What exactly do you believe they should do?
I think that the government can and should do more. I have made it clear to Tessa Jowell, the secretary of state for Culture, Media and Sport, that the government should condemn the action of Carlton and Granada, yet they refuse to do so. They could have a full enquiry conducted by the regulator – the Independent Television Commission – and they could stop giving cash to Carlton and Granada by way of what’s called the digital dividend. These broadcasters, for every viewer they get transferred over on to a digital platform, whether it’s satellite or cable, get a tax-free sum, a rebate against what it costs to be a public service broadcaster, which for the ITV network is £400 million a year. Over the next ten years they can earn up to £320 million of that back through rebates. On Carlton and Granada’s own figures, between 2001 and 2010, which is the period the government set for the switch over from analogue, it’s worth £2 billion to them. Carlton and Granada pulling out of the League deal is nothing to do with the product itself or with them having overpaid for what they got. Because they paid the going rate at the time – in the same way that Sky did. They just decided they couldn’t run a paying channel against Sky. The reasons why were poor technology, poor customer service and poor marketing. And yet they suddenly saw that they could make more money out of the digital dividend then they could through subscribers. The government could simply call the ITV companies and say: “You can forget all about the digital dividend until you pay your debt to football.” And that would also serve as a warning to other companies generally, because what we’ve got here are two major FTSE 100 companies who have just walked away from their liabilities – which is almost unprecedented.
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