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The cost of the Football League deal proved one too many a burden for the struggling ITV Digital. The [[English Football League|Football League]] refused to accept a £130m pay cut in its £315m deal with the network, and would soon cause ITV Digital itself to be placed into administration on 27 March 2002. The collapse caused severe financial difficulties for lower-division football clubs who had budgeted for large incomes from the television contract.<ref>{{cite web|url=http://news.bbc.co.uk/sport1/hi/football/1946061.stm |title=A player's view |publisher=BBC Sport |date=2002-04-23 |access-date=2013-08-02}}</ref>
Following the closure of the majority of the subscription channels on ITV Digital on 1 May 2002, the ITV Sport Channel, however, continued to broadcast, being re-designated as a free-to-air channel. The closure of the channel was announced two days later on 3 May, and closed as planned on 11 May, after its coverage of the [[2002 Football League Second Division play-off Final|Division 2 play-off final]] between [[Brentford F.C.|Brentford]] and [[Stoke City F.C.|Stoke]].<ref>{{cite news|url=https://www.theguardian.com/media/2002/may/03/broadcasting.itvdigital|title=ITV Sport to close on May 11|last=Milmo|first=Dan|date=3 May 2002|work=The Guardian}}</ref><ref>{{Cite news|date=3 May 2002|title=ITV Sport to go off air|publisher=BBC Sport|url=http://news.bbc.co.uk/1/hi/business/1967253.stm|access-date=6 May 2021}}</ref> Following the end of the match, a closedown slide was displayed stating 'The ITV Sport Channel has ceased transmission. <ref>https://www.youtube.com/watch?v=te-gh3YilIE</ref>
On August 1, 2002, the [[English Football League|Football League]] sued ITV Digital's parent companies, Carlton and Granada, claiming that the firms had breached their contract in failing to deliver the guaranteed income. The League lost the case, with the judge ruling that it had "failed to extract sufficient written guarantees". The League then filed a negligence claim against its lawyers for failing to press for a written guarantee at the time of the deal with ITV Digital. This time it was awarded a paltry £4 in damages of the £150m it was seeking.<ref>{{cite web|title=Hammonds wins Football League claim - but pays £4 damages|url=http://www.thelawyer.com/hammonds-wins-football-league-claim-but-pays-4-damages/120618.article|publisher=[[The Lawyer]]|date=2006-06-23|access-date=2014-07-13}}</ref>
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