Report: EA and NFL restructure exclusivity deal amid work stoppage fears
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The NFL has cut EA a break, reports SportsBusiness Journal, reducing the Madden maker's licensing fee by an undisclosed amount for the next football season, which remains in jeopardy as the current collective bargaining agreement between the league and the players' union is set to expire March 4 and, so far, renegotiations have been futile. If a new CBA is not drawn between the two sides before the current contract expires, it could result in a work stoppage -- in other words, no football come fall.
While such an outcome wouldn't prevent EA from releasing Madden 12 in early August (the series' traditional launch window leading up to the start of the NFL regular season), it could certainly devalue the expensive NFL-related licenses that EA has secured. Last October, anticipating such a scenario, EA reportedly requested a $30 million dollar discount on its payment owed to the NFL this year. The five-year deal inked in 2008 between the two sides is believed to be worth "well into nine figures" -- that's hundreds of millions -- and is likely the NFL's most lucrative non-TV contract, according to SBJ.
"For one of our core partners in a difficult environment, we say let's look at this, and maybe it makes some sense to extend something out longer and give our partner some relief in the short term, but gain something on the back end," Jacksonville Jaguars owner Wayne Weaver, chairman of the NFL's business ventures committee, told SBJ, alluding to the nature of the restructured deal with EA. According to SBJ's sources, EA has been granted some form of relief for this year's fees, and its NFL exclusivity deal has been extended one year through the 2013-14 football season.
EA maintains a separate, concurrent contract with the NFL Players Association for which the players' union receives $30–40 million, annually (according to the union's Labor Department filings), for the publisher's right to use NFL players in its games. It's as yet unknown if EA has sought to reduce its fees owed to the union this year or extend the deal another year to remain consistent with the companion contract with the league. EA declined our request to comment on its NFL-related licensing agreements for this article.
While such an outcome wouldn't prevent EA from releasing Madden 12 in early August (the series' traditional launch window leading up to the start of the NFL regular season), it could certainly devalue the expensive NFL-related licenses that EA has secured. Last October, anticipating such a scenario, EA reportedly requested a $30 million dollar discount on its payment owed to the NFL this year. The five-year deal inked in 2008 between the two sides is believed to be worth "well into nine figures" -- that's hundreds of millions -- and is likely the NFL's most lucrative non-TV contract, according to SBJ.
"For one of our core partners in a difficult environment, we say let's look at this, and maybe it makes some sense to extend something out longer and give our partner some relief in the short term, but gain something on the back end," Jacksonville Jaguars owner Wayne Weaver, chairman of the NFL's business ventures committee, told SBJ, alluding to the nature of the restructured deal with EA. According to SBJ's sources, EA has been granted some form of relief for this year's fees, and its NFL exclusivity deal has been extended one year through the 2013-14 football season.
EA maintains a separate, concurrent contract with the NFL Players Association for which the players' union receives $30–40 million, annually (according to the union's Labor Department filings), for the publisher's right to use NFL players in its games. It's as yet unknown if EA has sought to reduce its fees owed to the union this year or extend the deal another year to remain consistent with the companion contract with the league. EA declined our request to comment on its NFL-related licensing agreements for this article.
Reader Comments (24)
Posted: Feb 15th 2011 4:38PM Bumper said
Oh noes!!!! : l
Posted: Feb 15th 2011 4:42PM Truant said
Boo.
Extending the exclusivity contract a year is bogus. Competition and choice are good things for the customer and for the industry.
But people will still buy whatever drivelware EA decides to push out there. It's sad that we are hurting ourselves here.
Extending the exclusivity contract a year is bogus. Competition and choice are good things for the customer and for the industry.
But people will still buy whatever drivelware EA decides to push out there. It's sad that we are hurting ourselves here.
Posted: Feb 15th 2011 4:55PM Johnnynumber5 is powered by cell said
@Truant
I admit I didn't like the changes in the most recent Madden game. It made the game feel slow and arcade like something that would be on Wii. Still, EA had done good with their NCAA Football franchise and really everything from their EA Sports division. When it didn't work they scrapped the project all together ... NBA Elite. I can honestly say that 2K/Visual Concepts never did much in the way of realistic sports simulations. I've never liked their animations or pacing. I know a lot of people love the NBA 2K series and the Tennis Series but I've never personally cared for them. MLB The Show also thouroughlly stomps them in baseball every year.
Reply
I admit I didn't like the changes in the most recent Madden game. It made the game feel slow and arcade like something that would be on Wii. Still, EA had done good with their NCAA Football franchise and really everything from their EA Sports division. When it didn't work they scrapped the project all together ... NBA Elite. I can honestly say that 2K/Visual Concepts never did much in the way of realistic sports simulations. I've never liked their animations or pacing. I know a lot of people love the NBA 2K series and the Tennis Series but I've never personally cared for them. MLB The Show also thouroughlly stomps them in baseball every year.
Posted: Feb 15th 2011 4:43PM CaptainProtonX said
EA script: change from 11 to 12...pending, pending, pending
Posted: Feb 15th 2011 4:43PM shinjix2 said
At least we know where EA's development costs for a NEW and INNOVATIVE game is going.....
Posted: Feb 15th 2011 4:44PM EDZiLLUH said
i want NFL 2K12.!!! tired of the same game Madden every year
Posted: Feb 15th 2011 4:58PM Johnnynumber5 is powered by cell said
@EDZiLLUH
The problem with the most recent Madden is it changed to much. It wasn't even football. Maybe you'd like it.
Reply
The problem with the most recent Madden is it changed to much. It wasn't even football. Maybe you'd like it.
Posted: Feb 15th 2011 5:38PM PSN StaticShock said
@EDZiLLUH
Thank you! I feel like the NFL2K games were always better than Madden but Madden was always more popular. I would love to see more football games (not made by EA) with actual player names
Reply
Thank you! I feel like the NFL2K games were always better than Madden but Madden was always more popular. I would love to see more football games (not made by EA) with actual player names
Posted: Feb 15th 2011 4:44PM sigma8 said
Getting that exclusivity deal looks like it was super worth it for EA, licensing fees notwithstanding. With several underperforming franchises (unfortunately, some are awesome new IP's, but others are not so awesome), it's like a huge security blanket made out of money
Posted: Feb 15th 2011 4:54PM Adhesive said
The guys that made back breaker need the NFL liscense.
Posted: Feb 15th 2011 4:56PM Johnnynumber5 is powered by cell said
@Adhesive
LOL
Maybe some parts of their engine need to be licensed but the game itself was trash.
Reply
LOL
Maybe some parts of their engine need to be licensed but the game itself was trash.
Posted: Feb 15th 2011 5:02PM thisredengine said
That's...a lot of money. That's like 999 rupees in the Zelda universe.
Posted: Feb 15th 2011 5:24PM southernpredator said
No Madden 2012? What ONE"S going to do?
Well I guess I have to play Madden 2011,2010,2009,etc.
Problem solved!
Well I guess I have to play Madden 2011,2010,2009,etc.
Problem solved!
Posted: Feb 15th 2011 5:34PM jrobington said
I still think the best Madden so far has been 08 and maybe 09. Years Before and after that have been lacking. Especially when they Started charging to train and improve franchise players. I'll wait to buy any more until I see real improvement
Posted: Feb 15th 2011 5:54PM MatthewBlackwell said
It's time for Madden CFL Football 2012. It's what they would have done for Madden '82:
http://en.wikipedia.org/wiki/Canadian_Football_League#Foreign_coverage
http://en.wikipedia.org/wiki/Canadian_Football_League#Foreign_coverage
Posted: Feb 15th 2011 6:16PM Uracat said
So... no NFL 2K13? :'(
Posted: Feb 15th 2011 6:46PM FrodoTBaggins said
IMO, NFL 2K3 = Best Sports Game Ever (Iplayed the others butI think this was the best)
I still play it today, yeah it was arcadey, but only to the point that kept it fun.
It reminds me of that story 'stiq ran about the grand theft auto franchise, basically saying that while developing 3 it was once too realistic, then they tuned it to make it fun. I think the 2K series was football, tuned to be fun!
I still play it today, yeah it was arcadey, but only to the point that kept it fun.
It reminds me of that story 'stiq ran about the grand theft auto franchise, basically saying that while developing 3 it was once too realistic, then they tuned it to make it fun. I think the 2K series was football, tuned to be fun!
Posted: Feb 15th 2011 7:21PM Hong Dong said
Madden 92 was my fave. Back before it became this annual thing of pop culture (Madden curse and all that crap). At least they named the team that played in New Jersey correctly.
Posted: Feb 15th 2011 7:25PM DelTrigger said
I only want Madden 12 to see if any of my Packers are going to be on the cover.
Posted: Feb 15th 2011 9:57PM mideastbeast1214 said
At least there is something that isn't owned by Activision
Posted: Feb 15th 2011 10:59PM staybrutal420 said
After seeing what 2k and Visual Concepts did to the EA NBA Live series. I have confidence 2k sports would make the best NFL game. This Proves EA is seriously scared and are willing to throw crazy $$ to the NFL.
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