Sir Brian Mawhinney has confirmed that the Football League will be taking legal action against Hammonds Solicitors for negligence during their contract negotiations with ITV Digital in 2000. The League claims that the firm, who at the time of negotiations were known as Edge Ellison, were negligent and failed to protect the League's interests during contract negotiations - in a deal that eventually collapsed, almost taking numerous Football League clubs with it.
Edge Ellison were the acting solicitors during the negotiations but have since formed part of Hammonds Solicitors after varoius mergers. The original deal saw the ITV Digital taking all viewing rights of the three football leagues for the seasons 2001/02 - 2003/04, but after blaming poor subscription and lack of interest, the company went into administration in March 2002. This meant that the Football League was still owed £178 million for the remaining two years of the contract.
The Football League did attempt to recover some of it's losses from parent companies Carlton and Granada, but in June 2002 the courts ruled that the contract agreement did not come with parent company guarantees...meaning the Football League remained out of pocket.
This new episode appears to be just another chapter in the ITV Digital Scandal, that some three years on, has still failed to be resolved. Sir Brian Mawhinney has stated that due to the impending legal proceedings, the Football League will not be issuing any further comments at this stage.