2k never getting the NFL sim license!!

[illwill10]

Quote: Originally Posted by simbayless

I wish EA said this to the NFL Sent from my moto g stylus 5G using Tapatalk

Well, EA signed a 5 year $1.5B deal(likely getting an extra year). That's $300M a year. I'm certain that number would go up in the next negotiation. 2k's NBA license signed a year prior to EA's deal was a 7 year $1.1B deal, should be up in 2026. That's about $157M a year. Does EA really want to pay upwards of $400M a year for an exclusive license.

[simbayless]

Quote: Originally Posted by illwill10

Well, EA signed a 5 year $1.5B deal(likely getting an extra year). That's $300M a year. I'm certain that number would go up in the next negotiation. 2k's NBA license signed a year prior to EA's deal was a 7 year $1.1B deal, should be up in 2026. That's about $157M a year. Does EA really want to pay upwards of $400M a year for an exclusive license.

Of course they will if they want to keep 2k the big bad school bully away from them lol

[Rocky]

Quote: Originally Posted by illwill10

I could see a scenario where EA themselves wouldn't want an exclusive license anymore. They didn't want to pay the FIFA license, the ESPN license. I don't think I would put the NCAA license in the same boat because they didn't want the NIL. I don't think an Exclusive license is as necessary and worth the cost as it was for EA. The cost of development and licensing fees is enough to keep the average AAA out of the market. Only way EA would want to maintain exclusive license is if they don't want competition. I definitely think 2k would jump back in if it was non-exclusive. But, they would be playing catch up for a while after they build a game from scratch. I could see the NFL wanting to maintain the exclusive license more than EA. With an exclusive license, NFL is more likely to name their own price and have more creative control. EA has shown they are trying to cut down costs.

I think it's just simple negotiations for EA/NFL. I can't see why EA wouldn't want exclusivity. Yes, 300 mil per year is a ton of money but apparently EA turns a nice profit with Madden.

The NFL probably wants to increase the licensing deal in line with the broadcasting rights increase. The broadcasting rights more than doubled to 1 billion a year a few years ago so the NFL probably is looking for something in the 500 million range.

If EA is drawing a ton of revenue with MUT, just realeased one of the best selling sports games ever, and otherwise has a great relationship with the NFL, they would just want to keep the gravy train going and it's understandable to balk at a massive exclusivity proce increase.

2K complicates everything because if their willing to spend 300-400 mil per year for a non-exclusive deal, the NFL would be silly not to offer the non-exclusive deal to both EA and 2K. Having EA and 2K at 300 mil a piece is just too much more lucrative than having EA at just 500 mil.

Puts EA in a tough spot because do they pay what the NFL wants and hold their market share? I think they do cave and get exclusivity again.

[illwill10]

Quote: Originally Posted by Rocky

I think it's just simple negotiations for EA/NFL. I can't see why EA wouldn't want exclusivity. Yes, 300 mil per year is a ton of money but apparently EA turns a nice profit with Madden. The NFL probably wants to increase the licensing deal in line with the broadcasting rights increase. The broadcasting rights more than doubled to 1 billion a year a few years ago so the NFL probably is looking for something in the 500 million range. If EA is drawing a ton of revenue with MUT, just realeased one of the best selling sports games ever, and otherwise has a great relationship with the NFL, they would just want to keep the gravy train going and it's understandable to balk at a massive exclusivity proce increase. 2K complicates everything because if their willing to spend 300-400 mil per year for a non-exclusive deal, the NFL would be silly not to offer the non-exclusive deal to both EA and 2K. Having EA and 2K at 300 mil a piece is just too much more lucrative than having EA at just 500 mil. Puts EA in a tough spot because do they pay what the NFL wants and hold their market share? I think they do cave and get exclusivity again.

I agree

I don't expect the licensing fee to exceed $500M. But, I do expect it to increase from $300M. I'm sure the NFL is looking at the amount of Revenue Madden gets from Microtransactions and will take that into consideration. So, I think $400M is the minimum

A non-exclusive license would drop the fee. I'd say between $250-300M. For EA, do they rather pay $400M to keep 2k out of the market or save $100-150M a year and have the belief that 2k will have to play catchup for a long while. If 2k is willing to pay $250-300M for a non-exclusive license, would the NFL really turn down an extra $100-200M a year. Only thing about 2k is that their NBA license renewal is coming up next year. They're at $157M for a non-exclusive license and that was double from previous deal. With 2k selling 10M+ copies a year and making similar revenue with Microtransactions as EA, I wouldn't be surprised if 2K's license fee double to about $300M. So does 2k want to have to negotiate up to $600M+ in licensing fees for two different companies at the same time.

[simbayless]

Quote: Originally Posted by Rocky

I think it's just simple negotiations for EA/NFL. I can't see why EA wouldn't want exclusivity. Yes, 300 mil per year is a ton of money but apparently EA turns a nice profit with Madden. The NFL probably wants to increase the licensing deal in line with the broadcasting rights increase. The broadcasting rights more than doubled to 1 billion a year a few years ago so the NFL probably is looking for something in the 500 million range. If EA is drawing a ton of revenue with MUT, just realeased one of the best selling sports games ever, and otherwise has a great relationship with the NFL, they would just want to keep the gravy train going and it's understandable to balk at a massive exclusivity proce increase. 2K complicates everything because if their willing to spend 300-400 mil per year for a non-exclusive deal, the NFL would be silly not to offer the non-exclusive deal to both EA and 2K. Having EA and 2K at 300 mil a piece is just too much more lucrative than having EA at just 500 mil. Puts EA in a tough spot because do they pay what the NFL wants and hold their market share? I think they do cave and get exclusivity again.

Yea I agree and the fact that the NFL gave EA extra year in the contract tells me they
Giving EA extra time to negotiate a new contract
2k had a better chance right before the PS4 launched but part of that was our fault ! Lol
I Remember there was rumors that said they saw 2k talking to the NFL and it put the Internet on fire and we all got hype and then BAM!!!
EA steps on that and renews the contract lol
Since that happened we never heard of a 2k sighting with the NFL again
Until they announced the arcade deal
And even that is very telling because that's telling us they don't have a shot at the sim rights

[simbayless]

I'm starting to think 2k chances of bidding for the NFL sim license was higher than we think
But 2k wasn't ready to pony up the cash
Is my theory remember Rex dared 2k to buy the license hmmmm????🤔🤔🤔

https://youtu.be/vQy8h1kxO6c?si=MQ9eOFjBbICYtMYJ

[simbayless]

BTW in 2020 why did Ronnie hype up the old NFL 2k gamers
Only for them to find out it's gonna be a playground game
That doesn't even make any sense
That's like THQ bought back the rights from WWE and made an announcement it's only gonna be a battlegrounds WWE type of game
In other words why hype up your core fan base only for them to find out later and get deflated

As soon as the fans know what type of game it is this was our response....




Sent from my moto g stylus 5G using Tapatalk

[zello144]

Quote: Originally Posted by simbayless

BTW in 2020 why did Ronnie hype up the old NFL 2k gamers Only for them to find out it's gonna be a playground game That doesn't even make any sense That's like THQ bought back the rights from WWE and made an announcement it's only gonna be a battlegrounds WWE type of game In other words why hype up your core fan base only for them to find out later and get deflated As soon as the fans know what type of game it is this was our response....

I think they didn't tell Ronnie the full details and Ronnie being Ronnie decided to hype it up anyway.

Quote: Originally Posted by simbayless

I'm starting to think 2k chances of bidding for the NFL sim license was higher than we think But 2k wasn't ready to pony up the cash Is my theory remember Rex dared 2k to buy the license hmmmm????������ https://youtu.be/vQy8h1kxO6c?si=MQ9eOFjBbICYtMYJ

That was 11 years agoo.... dang time flies. I feel old now.