Who is legally liable for pay the contract amounts


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Carlton and Granada 1 - Nationwide Football League 0 Two television broadcasting companies, Carlton and Granada, each owned 50 per cent of a separate company, ITV Digital (formerly ON Digital). ITV Digital signed a contract to pay the Nationwide Football League (in effect the three divisions of English football below the Premiership) more than £89m on both 1 August 2002 and 1 August 2003 for the rights to broadcast football matches over three seasons. ITV Digital was unable to sell enough subscriptions for the broadcasts and collapsed because it was unable to meet its liabilities. The Nationwide Football League tried to force Carlton and Granada (ITV Digital's only shareholders) to meet the ITV Digital's contractual obligations. It was unable to do so because the shareholders could not be held legally liable for the amounts owing. Carlton and Granada merged into one business in 2003, but at the time of ITV Digital were two independent companies.

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Financial Accounting: Who is legally liable for pay the contract amounts
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