LOSS-MAKING ITV Digital was put into administration yesterday in a potentially fatal blow for cash-starved football clubs.

The future for digital television was also thrown into doubt as the High Court granted the application by the broadcaster's board.

ITV Digital - which is promoted by stand-up comic Johnny Vegas and Monkey, his knitted sidekick - had hoped to strike a last-minute deal with the Football League, allowing it to renegotiate the terms of a £315m contract.

It owes £178m under the deal signed with football chiefs to allow it to screen Nationwide League and Worthington Cup matches.

But talks broke down as the broadcaster, hit by low audience figures and falling advertising, said it could afford to pay just £50m.

ITV Digital's owners, Granada and Carlton, are pumping in enough cash to ensure that subscribers continue to receive programmes through their set-top boxes.

Accountancy firm Deloitte and Touche has taken over the running of the company.

But analysts in the City said that the move meant it was clear there could be little left over for the nation's smaller football clubs.

The next £90m payment to clubs was due in August but, if the company is not operating, it will be unable to pay.

It is understood that six Football League clubs are ready to put themselves into administration following ITV Digital's collapse.

Former sports minister Tony Banks warned that league football was now facing the greatest crisis in its history.

"Football clubs, from the Premier League right the way down, have become so reliant on television money for their financing that any failure of any contract will have profound consequences for the financial future of the clubs," he said.

And Gordon Taylor, the football players' union chief, said that failure to reach an agreement could lead to a doomsday scenario.

"Clubs in Division One get most of the TV money and to most lower league clubs it is life and death," he said.

Last night George Reynolds, chairman of Third Division Darlington, said: "The balloon's burst and it has been a long time coming. I am not over the moon about it, but it is no good whingeing and crying.

"There is no doubt a lot of clubs will go out of the league, but not Darlington."

A spokesman for York City said the loss of its share of TV money was the equivalent of losing gate receipts for ten matches.

Hartlepool chairman Ken Hodcraft said: "Any reduction in income is clearly not helpful to a Third division club."

Yesterday's order lasts for six months, but the case is due to return to court on April 15.

The Football League has threatened to sue the broadcaster and its owners for £500m if they do not meet the original terms of the deal.