A Sussex company has raised £3.5million on the stock market to fund digital radio stations for four top football clubs.

Brighton-based Radio First has placed 4.55 million new shares with international fund managers to raise the money to set up the stations in time for the 2001/2 football season.

Managing director Rory McLeod said: "We have arranged deals with Southampton, Chelsea, Aston Villa and Derby and will be starting radio stations, on air 24 hours a day, seven days a week, for the clubs with the money we raise.

"The first station will begin broadcasting by July or August. We also expect to have another three deals by the end of the year."

Radio First is well on the way to establishing The Fan Radio Net-work, formed from digital commercial stations across the country and broadcast-ing from the stadiums of Premier League football clubs.

The company aims to broadcast a mixture of entertainment, chart music and football news from each club.

The network is the first of its kind in Europe and the clubs involved have been signing up for 12-year contracts, the longest sports rights deals ever seen in this country.

The shares will be available on the Alternative Investment Market.