Ea Fifa Agreement
Sales of the game, which releases an updated edition each year, have surpassed $20 billion over the past two decades for its California-based maker Electronic Arts. But FIFA has also cashed in: its licensing deal has become the organization`s most valuable trade deal, worth around $150 million a year. According to a press release, EA recently renewed its licensing agreement with player representative FIFPRO on October 12. This agreement gives EA exclusive video game rights for various leagues such as the UEFA Champions League, CONMEBOL Libertadores Premier League, Bundesliga and LaLiga Santander. This proves that EA intends to renew ongoing licensing agreements for the world`s best-known teams and leagues. “Looking ahead, we are also exploring the idea of renaming our global EA Sports football games,” EA Sports Cam Weber wrote after the launch of FIFA 22 in October. “This means that we are in the process of reviewing our naming rights agreement with FIFA, which is separate from all our official partnerships and licenses in the world of football.” Why should EA part ways with FIFA – why should EA even consider this? An October 13 New York Times article sheds more light on the situation: it`s time for EA to renew its FIFA license, and organizations are struggling to reach a financial settlement. On October 7, 2021, EA issued a statement indicating that they were considering renewing their licensing agreement with FIFA, which could result in a name change for one of the largest video game franchises in history. “The fear we always had was how much money we would pay FIFA for what you get,” Moore said. During his 10 years at EA, first as head of EA Sports and then as COO, Moore was involved in licensing negotiations with FIFA before leaving the company in 2017. He describes the current situation, particularly with one year remaining from the licence agreement, as “imprecise”. EA`s contract for the FIFA name license expires at the end of the 2022 World Cup next December, and the company has yet to reach a new deal. Negotiations between the two sides have been going on for two years, the New York Times reports.
The main point of contention is money: The Times reports that FIFA wants to more than double the amount it receives from EA to more than $1 billion for each four-year cycle of the World Cup. In addition, FIFA wants to beat the “FIFA” brand on more than EA`s video game and pursue new partnerships outside of its exclusivity agreement. EA has released an update regarding its licensing agreement with FIFA and the future of its popular EA Sports FIFA gaming franchise. At least two years of discussions over the contract extension, which allows Electronic Arts to use the organization`s name through its EA Sports division, have hit the wall, according to several people familiar with the negotiations. The possibility of a permanent hiatus after next year`s World Cup in Qatar – when the current 10-year deal ends – was made clear in a letter last week from Cam Weber, executive chairman and CEO of EA Sports. Ea Sports` mega-popular FIFA gaming franchise could drop the FIFA name as early as next year, as the licensing deal expires and both companies make strong public statements on the subject. Under the terms of the agreement, EA SPORTS retains the exclusive rights to publish FIFA action video games and brand management. In addition, EA SPORTS also holds the exclusive release rights to the official FIFA World Cup video game and retains™ its status as a FIFA Interactive World Cup Presenting Partner.
Why there`s a disagreement – Between game sales and in-game transactions, FIFA generates tens of millions of dollars a year for EA, making it one of the most lucrative video game franchises on the market. However, the management of the real FIFA organisation clearly wants a larger share of revenue. Part of EA`s calculation is that even if it is forced to rename one of the most popular video franchises of all time, it`s unlikely that a competitor can challenge its dominance of the market. EA`s position has become almost total control over the football gaming industry thanks to more than 300 other similar licensing agreements with organisations such as UEFA, which runs the Champions League, and national leagues and competitions around the world. These agreements allow EA to use the names and details of players, teams from world-renowned clubs, and leading leagues in its game. (On Tuesday, EA renewed such an agreement with FIFPro, the Global Players` Union.) Whether it`s FIFA or Konami`s eFootball (formerly known as Pro Evolution Soccer), sports games are based on partnerships and licensing agreements. These agreements give developers legal permission to use the names of real players, teams, and leagues in each new video game. REDWOOD CITY, Calif. and ZURICH – May 8, 2013 – EA SPORTS™, a division of Electronic Arts Inc. (NASDAQ: EA) and the Fédération Internationale de Football Association (FIFA), has announced an extension of its existing license agreement until December 31, 2022. The expansion, referred to only as a “long-term commitment,” will allow EA to continue using the “thousands of player names and images” supported by the FIFPRO licensing agreement, alongside various official leagues, including the UEFA Champions League, CONMEBOL Libertadores, Premier League, Bundesliga and LaLiga Santander. If EA and FIFA agree on the future of the lucrative football series, it could not be an exclusive deal.
FIFA announced that it had conducted a “comprehensive and strategic assessment” of the game`s landscape and decided to expand its business relationship to other companies. “This means that we are revising our naming rights agreement with FIFA, which is separate from all our other official partnerships and licenses in the world of football. After a brief rest period for both companies, EA has now released an update on their FIFA licensing negotiations, the future of the franchise, the future of FIFA Ultimate Team and even the NFTs. “Technology and mobile companies are now actively competing to be associated with FIFA, its platforms and global tournaments.” The future of football is very big and very bright. Our priority is to ensure that we have every chance to continue to deliver the best interactive football experiences in the world. Unlike the FIFA series, the N.F.L. video game is based on just two key licenses, one with the National Football League and the other with the league`s players` union. Cam Weber, president and CEO of EA Sports, issued a statement earlier this week suggesting the company`s FIFA partnership would no longer continue.
The EA SPORTS FIFA franchise, the world`s most critically acclaimed sports video game franchise, continues to drive record consumer retention with more than 65 million games played each week. The game`s profitability has increased thanks to innovations such as player packs, similar to trading cards, where users have to spend money in the game to build the best rosters. Piers Harding-Rolls, a gaming industry analyst at Ampere Analysis, estimated that the game feature known as Ultimate Team was worth up to $1.2 billion for EA last year. As for FIFA 22, the latest installment in the Ea football series – and perhaps the last to bear that name – Eurogamer criticised its “morally bankrupt monetisation” in our recent test. And that theme continued when Wesley Yin-Poole had the opportunity to chat with EA and dive into the FIFA series` Ultimate Team and controversial loot boxes. Given that its license with FIFA EA Sports only grants the use of the organization`s name and logo and the rights to the World Cup, a month-long championship that takes place every four years, the game maker seems to have concluded that the loss of the relationship would not be the kind of existential threat it might face. if he lost the licenses to another extremely popular sports franchise. Madden N.F.L. Matt Wales is a writer and summer kid who plays and doesn`t even pretend to live an impressive and busy life with a dynamic go-getting for the purposes of this biography…