ITV Digital could force staff cuts

Last updated : 28 March 2002 By Luke Thornhill

"It's definitely going to affect Scunthorpe United, we have budgeted for the money, it is guaranteed money and we have almost spent it thinking ahead," said Laws today speaking to the Scunthorpe Evening Telegraph

"That leaves us with a deficit, we have already made a loss of £300,000 last season and it's now going to be more this year.

"The financial strain on this club is going to be enormous.

"If it continues like that, we are going to have to re-assess everything.

"The people that will suffer are going to be the players who have benefitted before from the freedom of contract.

"Now it could be a role reversal with a take it or leave it situation, players in the summer might now have to take large cuts in wages.

"We will have to adjust our budget unless we can get the money from somewhere. The players' budget will have to be assessed when contracts are renewed."

Also speaking to the Evening Telegraph, United's Chief Executive Don Rowing suggested that he forsees no problems for the club.

"As far as I'm concerned the agreement between the football league and ITV digital is a legally binding contract.

"Clubs and their supporters, many of whom are subscribers, are entitled to expect that agreement to be honoured," he said

ITV Digital owes £178.5million to the 72 league clubs, but wants to pay just £50millon. The FL have been holding out for full payment.

It has been suggested that six clubs will immediately fold as a result of this deal, although this is unlikley to be anything more than scaremongering and exagerattions from the red-tops.