The League was only one year into a three year £315 million ($490m/EUR499m) rights contract with ITV Digital when the platform collapsed under huge debts thus defaulting on any payments it was due to make to the clubs.
However, today's High Court ruling decreed that despite Carlton and Granada's ownership of ITV Digital, the two media firms were under no legal obligation to honour their collapsed digital terrestrial television platform's debts.
Said the presiding Justice Gordon Langley: "Neither company is liable to the Football League for any sum due or damages payable for breach of the June contract made between the League and ITV Digital.
"It is all the more unpromising when the relevant negotiations are conducted in a major commercial context between two companies with the benefit of the professional advice of experienced management and lawyers.
"In my judgement, the Football League's case remains just as unpromising at the finish as it looked at the start."
For its part the League has admitted responsibility for the first time in the ongoing rights debacle. Chief executive David Burns stated: "Looking back it was a mistake. We are bound by that mistake."
The decision came after a three-day court battle during which the League was claiming up to £500 million ($778m/EUR792m) in damages due to the loss of the much-relied upon broadcast revenue to the lower league clubs. During the case, the League has argued that Carlton and Granada had guaranteed the rights contract payments and that the final deal had gone ahead on the understanding that the clubs would receive the full amount of the deal.
When ITV Digital collapsed this April, it still owed the League £178.5 million in unpaid rights fees - a loss of revenue that has threatened to send a number of the clubs into bankruptcy.
Although the League's blushes have been spared following a negotiation of a new television rights contract, worth £95m ($144m/EUR148m), with pay-TV platform BSkyB, the deal is for a much-reduced fee compared with its original ITV Digital deal and the lost difference may still force some of the 72 lower division clubs to close.
The League had been hoping to recoup some of this lost revenue through the legal proceedings with Carlton and Granada but this course of action has now been brought to a crashing stop. There is some media speculation that the League may now sue the law firm which drew up its rights contract with ITV Digital although this potential legal action has not been confirmed by any party.
The English Football League has lost its legal battle with Carlton and Granada for financial compensation over the demise of the ITV Digital platform.
