BURY FC could be pushed back to the brink of liquidation if another media giant reneges on their cash pledge writes Chris Hall
Just a week after receiving a rescue package from Sky, following the demise of ITV Digital, Football League clubs could again be left with a massive hole in their budget as NTL desperately bid to avoid bankruptcy.
The cable firm, through Premium Television, agreed a five-year deal worth £65million with league clubs to run their official websites until 2005, earning cash-strapped Bury around £60,000 a year.
But PTV are now refusing to deny reports suggesting the deal is about to be scrapped as part of NTL's cost-cutting measures, making the outlook even gloomier for the club who only narrowly avoided liquidation last month.
Shakers have been walking a financial tightrope since coming out of administration, having to slash their playing squad to an almost unworkable size to prevent dipping further into the financial mire.
And co-chairman John Smith said the loss of internet cash would leave them struggling again.
"We are expecting a payment at the end of this week of around £25-30,000. It is money that has been promised to us and if we don't get it, then it's another nail in the coffin," he said.
"We've not heard anything from PTV yet to either confirm or deny the News of the World story.
"There were no warning signs about this. We were told there was a payment coming at the end of July and that's all we have heard.
"It's another major blow to us because we still have a massive debt to pay off. Now we'll just have to try and find the money from somewhere else."
PTV bosses have offered no official comment this week but the Football League has admitted being approached with a view to scaling down the operation - a move which will anger clubs in need of the pledged money.
FL Chief Executive David Burns said: "Both parties still hold a shared aim of delivering a stable and prosperous long-term future for their internet joint venture.
"However, with the downturn in the technology, media and telecommunications market and with NTL undergoing a financial restructuring, it is sensible that we have these discussions now to establish the viability of this ground-breaking 20-year venture so that it can fully deliver its future commercial potential."
Last week Football League chairmen blasted the new Sky deal, after the remaining broadcasting rights for league matches were snapped up for a knockdown £95million - some £85million short of ITV's original bid.
But Smith said he and fellow chairman Fred Mason were relatively happy with the new deal.
"I wouldn't say we are unhappy with the deal at all," he said.
"It's a bit of a lifeline for us and, although it's a bit less than we were originally promised, it's all welcome.
"To be honest, it affects the bigger clubs more than us. They stand to lose about £1.3million whereas we lose far less than that. And we get an extra £50,000 from the conference for agreeing to allow two teams to be relegated from Division Three next season."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article