The Premier League and the European Commission yesterday resolved their long-running dispute over the way television rights are sold, as it emerged that the chancellor Gordon Brown played a "crucial" role in reaching a compromise.
Under the deal, matches will be divided into six tranches of 23 games with no one broadcaster able to scoop all of the packages. It brings to an end BSkyB's 15-year domination of live top-flight football and offers the possibility of live games on terrestrial television for the first time since 1992. ITV, the BBC and Five have all signalled their intention to bid, as have the pay-TV groups NTL and Setanta. The Premier League will also encourage bids from new entrants such as BT, France Télécom and AOL by making all the packages "platform neutral" for the first time. That means that instead of hiving off new media rights into a separate package, it is understood winning bidders will be able to distribute games as they see fit. As such, a telecoms company could choose to boost take-up of broadband by screening games exclusively over the internet.
The deal brings to a close a saga which came to a head during the auction for the existing contract, when the Premier League promised the EC it would ensure a more equal distribution of games among broadcasters from 2007. Premier League chairmen, who yesterday ratified the compromise, are hopeful the agreement will maintain the flow of £300m a year into the game from broadcasters.
Under the deal, the Premier League chief executive Richard Scudamore has given assurances to the EC competition commissioner Neelie Kroes that the six packages will be equally balanced, ensuring an even spread of big-name clubs.
The EC, which had threatened legal action against the Premier League to force it to open up the bidding process, has also insisted on the appointment of an independent trustee to oversee the auction for the rights from the 2007-08 season onwards. Kroes said: "The commitments offered by the Premier League should ensure the media rights are sold in a fair and transparent manner and give British football fans greater choice and better value."
The agreement will be seen as a victory for Scudamore and the Premier League clubs as they try to match the existing £1.1bn three-year deal for live matches. By maintaining the overall number of games on offer at 138 in the face of EC pressure to make more available, it also hopes to quell concern the market has become over-saturated with live matches.
Players in armchair football contest
BSkyB: Sure to bid for the maximum five packages of 23 games
BBC: Determined to retain highlights for Match of the Day
ITV: Will bid for live package
Setanta: Has poached former deputy Sky Sports chief Trevor East
NTL: Along with ITV, argued for a 50/50 split
Five: Owner RTL may be prepared to fund a large push
BT: Launches broadband TV service next summer