The European Commission said today that it had struck a deal with the FA Premier League to break BSkyB's grip on the broadcasting of top-flight football matches from 2007 onwards.

After months of wranging over the satellite broadcaster's monopoly position, the Commission said that the Premier League had submitted "improved commitments" under which it will sell live television rights for the matches in six media packages - and no single broadcaster will be able to buy all six packages.

Bidding for the matches will be monitored by a special trustee, who would report back to the EU executive.

The deal guarantees that at least two broadcasters will share the right to broadcast some live matches from the 2007-08 season, although that may come as a disappointment to terrestrial and cable broadcasters who had lobbied to have at least half of the live rights taken away from BSkyB.

Under the deal, BSkyB, which is 37.2-per cent owned by News Corporation, parent company of The Times, will lose its exclusivity but could still retain a dominant position.

It could also lead to an overall rise in the cost of TV rights if channels decide to gamble on an auction for a single package of rights. Mel Goldberg, a sports lawyer at solicitors Max Bitel, Greene, said: "It's a fairly reasonable solution, but people will have to do their maths pretty carefully."

The deal lifts the threat of legal action against the Premier League under European anti-trust legislation.

Neelie Kroes, the EU Competition Commissioner, said: "The commitments offered by the Premier League should ensure that the media rights are sold in a fair and transparent manner and give British football fans greater choice and better value."

But Dan Sabbagh, Times Media Editor, said that although the deal is meant to promote competition, it could still prove more costly to fans, if they have to subscribe to more than one pay-TV service to capture the games they want to see. "It depends who wins in the end," Sabbagh said.

"It probably won't happen, but there could theoretically be a 50-50 split between a cable channel and a satellite channel."

Sabbagh added: "This is a win for Sky, and is disappointing for ITV and NTL which had hoped for a 50/50 split. Sky had wanted minimal regulation and is well placed to keep most of the rights."

The EU executive said it is to prepare a draft decision, making the Premier League's commitments legally binding. This will then be sent to EU member state competition authorities for consultation, before the commission makes a final decision in the first quarter of 2006.

The agreement comes after a protracted dispute. In 2003, the Commission agreed with the Premier League to open up BSkyB exclusive rights to broadcast its matches by offering six to eight matches a season for tender to other broadcasters until the end of 2006.

The tender stalled, however, with none of the bids reaching the reserve price - thus allowing BSkyB to reject all the offers on the table.

Nevertheless, the Commission said it agreed with the Premier League that after 2006 the tendering procedures for television rights will ensure that there are at least two television broadcasters of live Premier League matches.

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