Hopes for football's financial future have risen over a report that satellite TV giant BSkyB was willing to pay up to £1bn to retain broadcasting rights.

BSkyB, controlled by Rupert Murdoch, had been expected to pay significantly less for its new contract to show Premier League matches than the £1.1bn its paid for its 2001-04 deal.

The collapse of ITV Digital, which was saddled with a huge bill for rights to screen lower-division matches, and a cash crisis in the cable TV industry was thought to have left BSkyB able to offer a small sum to secure the rights.

But Premier League chiefs have said the costs of top sporting rights will prove more resilient than many observers have predicted.

And bosses at BSkyB, which has depended largely on Premier League screenings for its success, agree with this assessment, the Mail on Sunday newspaper reported.

"Premier League rights are more than important to Sky - they are fundamental," a BSkyB source told the Mail on Sunday.

"We would not like to contemplate life without them."

Officially, BSkyB said the rights matter had yet to be discussed by its board.

Wage pressures

A willingness by BSkyB to pay up for the rights would represent a major fillip to football, which has seen its finances increasingly questioned as player wages soar, yet broadcasting takings falter.

Stock exchange listed football clubs have lost the faith of many investors, sending their share price lower and prompting many to consider returning to private ownership.

BSkyB spends almost half its £663m a year programming budget on sports rights.

The broadcaster has held the exclusive rights to screen live Premier League matches since 1996.