EA’s NFL license exclusivity in danger

[TheWatcher]

Quote: Originally Posted by Cusefan

You are not going to get your variety because a Court cannot tell the NFL they cannot have a exclusive deal with a company. I would be willing to bet that if EA was found guilty they would have to pay a fine and that's it. Even if the NFL had to re-open the bidding for its game, who do you think would outbid EA? The only other companies that have the Pockets to outbid EA would be Activision and Disney and they don't make sports games.

Interesting that you mentioned Disney because they actually put up a bid for the license when the NFL first went shopping. The reason that was said at the time, was that Disney had no intention of developing it's own game but instead wanted to get the license and make money through sub-licensing. Had they done that as planned, at least ideally NFL competition would've still existed.

[jfsolo]

Quote: Originally Posted by Cusefan

You are not going to get your variety because a Court cannot tell the NFL they cannot have a exclusive deal with a company. I would be willing to bet that if EA was found guilty they would have to pay a fine and that's it. Even if the NFL had to re-open the bidding for its game, who do you think would outbid EA? The only other companies that have the Pockets to outbid EA would be Activision and Disney and they don't make sports games.

It would never happen because they like money too much, but it would be ironic if after somehow losing the case(won't happen) the NFL responded by not allowing any company to use their brand. No Madden, no NFL 2k, nothing. A big middle finger to everyone, and all gamers would be SOL then.

[FootballDetails]

Quote: Originally Posted by Cusefan

Even if the NFL had to re-open the bidding for its game, who do you think would outbid EA? The only other companies that have the Pockets to outbid EA would be Activision and Disney and they don't make sports games.

Why make it about which company bids higher? The NFL can keep the licensing fee just as high, and whichever company wants to pay it can pay it. If that still results in only EA using the license, that's fine, but at least give other companies a chance.

The NFL can also adjust the licensing fee based on the type of game and/or platform.

For example, it would be good business to give a smaller company a chance to produce a PC-only, Head Coach type game without charging them a huge amount for the license. If the sales were high, the NFL would benefit because it would most likely take a cut of the gross revenue.

The NFL already takes a cut of EA's gross revenue from the Madden franchise. I read in an article that it was 30 percent. The NFL could have even more revenue streams coming its way if it would just free up the license.

Doesn't the NFL want its brand everywhere? Right now, it's not on PCs. Isn't that ridiculous? That's a massively untapped market.

The NFL needs to stop this simplistic thinking and realize that the same amount of money (or more) could be made without resting the license in the hands of one company.

[Vikes1]

Quote: Originally Posted by Details

The NFL needs to stop this simplistic thinking and realize that the same amount of money (or more) could be made without resting the license in the hands of one company.

You would sure think so.

At least it seems like easy math....twice the games...twice the money. I wish the NFL and us could find out once again.

[Tyrant8RDFL]

Quote: Originally Posted by roadman

I'll need to disagree here with most of the post. I do agree somewhat with the last part. You mentioned business are guilty of running a monopoly with their own business decision. In this case, it takes two to tango. Without the NFL , EA doesn't have a license or monopoly. I'll agree we lost our rights as consumers, but it always isn't about the consumers from the NFL and EA's viewpoint. It's all about this license being profitable for EA and the NFL, don't you agree? If their is money being made on both sides, it's a happy marriage. If no money is being made, then it's time to reevaluate the marriage. So, the bottom line question is, if EA makes a good to great Madden this year and the following years, does all this exclusivity talk die down?

It does take 2 to tango, and I mentioned this in the past also, the NFL is to blame more than EA. They are the ones who made the decision to sell the exclusive rights.

This I agree with you 1000% (Thats not a typo Im saying one thousand )
If EA would have been making a solid football title would the talks die down. Oh heck yea without a doubt, but it just went the opposite way things got worst and worst.

The facts are EA got the deal, Madden got worst since the deal. They have not made as much money since having the deal, so the facts are everyone lost from EA to us the consumer. Well the NFL won they got their money .

[Tyrant8RDFL]

Quote: Originally Posted by Details

Why make it about which company bids higher? The NFL can keep the licensing fee just as high, and whichever company wants to pay it can pay it. If that still results in only EA using the license, that's fine, but at least give other companies a chance. The NFL can also adjust the licensing fee based on the type of game and/or platform. For example, it would be good business to give a smaller company a chance to produce a PC-only, Head Coach type game without charging them a huge amount for the license. If the sales were high, the NFL would benefit because it would most likely take a cut of the gross revenue. The NFL already takes a cut of EA's gross revenue from the Madden franchise. I read in an article that it was 30 percent. The NFL could have even more revenue streams coming its way if it would just free up the license. Doesn't the NFL want its brand everywhere? Right now, it's not on PCs. Isn't that ridiculous? That's a massively untapped market. The NFL needs to stop this simplistic thinking and realize that the same amount of money (or more) could be made without resting the license in the hands of one company.

Great post.

If I was the person responsible for making this decision. I would make 1 price for the rights to make a NFL game, as long as you pay that fee you can make a NFL game. Now I can have various companies paying the price, and now I have made a larger profit. Along with the price to have permission to make a NFL game, I would have a percentage of the profits for the games that sold. I would also make the license fee reasonable so I can have many takers.

We are talking SCEA, 2k, EA, Microsoft, THQ and others like Tecmo, and maybe even Konami. The point is more companies more games being sold as a whole, not just by 1 company, and everyone is happy. Plus like we mentioned competition would have made everyone step their game up

The NFL didn't really think this out, because the NFL is huge and is so well loved.
They actually cheated themselves.

[Senor_Herbatron]

I think competition would be great. I'd probably buy both games but no matter what product EA puts out I will continue to look forward to the game and pick it up the night it comes out.

Madden is the reason I bought a PS3.

[bkfount]

Quote: Originally Posted by Tyrant8RDFL

If I was the person responsible for making this decision. I would make 1 price for the rights to make a NFL game, as long as you pay that fee you can make a NFL game. Now I can have various companies paying the price, and now I have made a larger profit. Along with the price to have permission to make a NFL game, I would have a percentage of the profits for the games that sold. I would also make the license fee reasonable so I can have many takers. We are talking SCEA, 2k, EA, Microsoft, THQ and others like Tecmo, and maybe even Konami. The point is more companies more games being sold as a whole, not just by 1 company, and everyone is happy. Plus like we mentioned competition would have made everyone step their game up The NFL didn't really think this out, because the NFL is huge and is so well loved. They actually cheated themselves.

I think people mention all this competition without correctly recalling how there really wasn't the market for all those companies to make NFL games. It was pretty much just Madden and NFL 2k. Acclaim and Konami had horrible games out around 2001. Microsoft shut down their sports studios after NFL Fever 2004 to spend the money elsewhere. 989 limped NFL Gameday 2005 onto the market as a Playstation One exclusive in 2004, hahahaha.

As for cheating themselves, the NFL has actually secured numerous exclusive licenses for a range of products and services. They include Gatorade/PepsiCo, Coors, Visa, Bank of America, Bridgestone, Reebok, DirecTV, GM, and Motorola. The NFL also feels differently than many here on exclusive licenses..

http://www.azcentral.com/sports/supe...nsors0131.html

Quote:

"On a national level, we're generating more money by working exclusively with fewer partners," NFL spokesman Brian McCarthy says. "Exclusivity helps drive value, not only for sports but for that particular brand."