AOL bids for football TV rights

AOL Time Warner, the troubled US media conglomerate, is preparing a bid for the broadband internet rights of the Premier League.

The company, which has debts of $29bn (£18.5bn), wants to offer pay-per-view football highlights on its internet portal, which also shows Italian football and rugby internationals.

A spokesman said: "We have taken a look at the rights and negotiations continue."

The three-year rights were originally owned by interactive TV company Video Networks, which paid £30m to show Premiership games until the end of the 2003-4 season. But Video Networks, which last year laid off 450 people, pulled the service earlier this year and the rights passed back to the Premier League.

The Premier League refused to comment. But it is understood to be considering extending the rights, possibly until 2007.

It is also preparing to issue a tender document for the rights to 66 live games a season. BSkyB currently holds the contract, which expires in 2004. But the way the Premier League sells the rights is being probed by European competition commissioners.