The company that thought it had agreed a deal to run the TT says it's beginning legal action against the Department of Economic Development.

Vision Nine was formally notified yesterday by DED that the contract to promote the TT and Festival of Motorcycling had been scrapped.

CEO of the London-based firm Julian Topham says the saga serves as "a warning" for those wishing to do business with the Isle of Man Government in future.

Mr Topham insists this is now in the hands of lawyers: