The BBC will be showing England's home matches

The Football Association (FA) is expected to have to settle for much less than it received the last time it sold premiership rights.

Then, BSkyB paid �1.1bn for exclusive live rights from 2001 to 2004, with ITV paying �183m for highlights.

On Thursday, the BBC and BSkyB signed a new, cheaper deal with the FA to broadcast England's home games and the FA Cup.

That contract was valued at �330m, 28% less on an annual basis than the one signed at the height of the technology and media boom.

It will start in the autumn and run for four years, compared with the previous contract of �345m for three years.

Monopoly?

The sharp decline in the worth of television rights was expected following the high-profile collapse of ITV Digital and the sharp fall in media shares that was a key feature of the stock market collapse.

ITV Digital found it had vastly overpaid to show matches that relatively few people wanted to watch, leading it eventually to liquidation.

The drop is bad news for a host of cash-strapped football clubs, which rely on money from the FA for a substantial part of their income.

The FA insists the rights are lucrative enough to finance development of the new Wembley stadium.

This year, the TV rights have been divided into three packages to avoid accusations from the European authorities that BSkyB has an unfair monopoly.

It could also open up access to the premiership for other broadcasters such as the BBC and ITV.