The mayor addressed the issue during an appearance today on a Washington-based sports talk show to make NFL picks on WJFK-FM.
"Number one that's an outright lie and number two you can talk to my lawyers about it, but I'm here to talk about football guys," Ford said.
The mayor of Canada's largest city has been enveloped in scandal since news reports of the video first emerged in May.
The court documents released yesterday detail police wiretaps of alleged gang members who spoke about delivering drugs to the mayor and having pictures of him using drugs. One suspect is heard telling another that he rejected the offer for the video and planned to meet the mayor and ask for "150," meaning USD 150,000.
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The wiretaps are evidence in the case against Ford's friend Alexander Lisi, who faces trial on drug and extortion charges. The mayor has not been charged.
Toronto's city council has stripped him of most of his powers.
Toronto Deputy Mayor Norm Kelly, who has assumed many of Ford's powers, said he is "numb" to the new allegations in the court documents. Kelly repeated that Ford should seek help and take a leave of absence. Given that Ford has lost many of his powers, the latest allegations should have no impact on the running of the city, he said.