EA/NFL Extend NFL Exclusive License by One Year to 2013

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  • ryan36
    7 dirty words...
    • Feb 2003
    • 10139

    #316
    Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

    Originally posted by LiquorLogic

    Why do people keep saying this ? The NFL wants as much money as possible, and the deal with EA guarantees this regardless of Madden's sales. If the NFL could make more money with multiple licenses, they would award multiple licenses.
    Exactly. The NFL has set a price point at whatever the EA license costs. For another company to get involved, it'd break them

    Comment

    • roadman
      *ll St*r
      • Aug 2003
      • 26339

      #317
      Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

      Originally posted by LiquorLogic





      Why do people keep saying this ? The NFL wants as much money as possible, and the deal with EA guarantees this regardless of Madden's sales. If the NFL could make more money with multiple licenses, they would award multiple licenses.

      They already tried that in 2005 and it wasn't working.

      An ex-EA employee was already quoted in this thread. The NFL was making less money with multiple licenses vs giving a company with exclusivity.

      The NFL will opt to take the more money deal vs multiple licenses.

      Comment

      • bkrich83
        Has Been
        • Jul 2002
        • 71582

        #318
        Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

        Originally posted by EddieV
        A certified class calls it a monopoly. We'll see who's right on that soon enough.

        "The class-action lawsuit against Electronic Arts, makers of the popular Madden video game franchise, may continue, ruled US District Court Judge Vaughn Walker when he certified the class-action lawsuit late in December 2010. The lawsuit alleges EA established agreements with the National Football League (NFL), The NFL Players Union, Arena Football League and the National Collegiate Athletic Association (NCAA), that drove competition out of the market and prevented new competitors from entering."

        http://www.suite101.com/content/madd...#ixzz1E8Nlos3u
        It's not a monopoly.

        While I am all for competition. Telling people who they can or can't sell their intellectual property to is a dangerous precedent IMO. If I own a company I sure don't want the government telling me how to do business or who to do business with. I am sure you wouldn't either.

        That class action lawsuit has like zero traction. I would be shocked if anything comes of it.
        Tracking my NCAA Coach Career

        Comment

        • EddieV
          Banned
          • Jan 2011
          • 66

          #319
          Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

          Originally posted by LiquorLogic
          I doubt any of the lawsuits, including the American Needle case, breaks up any exclusive license that they NFL has currently awarded. Our only hope is that the precedent set by the case in American Needle discourages the NFL from awarding exclusive licenses, or EA decides that an exclusive license, since it hasn't increased their sales, isn't worth it anymore.
          My guess is the legal uncertainties had at least something to do with the 1 year term of the extension. No reason for the NFL and EA not to do a 4 or 5 year extension otherwise. A year from now we should have a better idea of where the EA-NFL deal stands from a legal standpoint.

          Comment

          • EddieV
            Banned
            • Jan 2011
            • 66

            #320
            Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

            Originally posted by Jackdog
            I wish them luck.
            Me too, JD.

            Comment

            • ryan36
              7 dirty words...
              • Feb 2003
              • 10139

              #321
              Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

              Originally posted by EddieV
              My guess is the legal uncertainties had at least something to do with the 1 year term of the extension. No reason for the NFL and EA not to do a 4 or 5 year extension otherwise. A year from now we should have a better idea of where the EA-NFL deal stands from a legal standpoint.
              No you're wrong the 1 year extension has to do with a potential lockout and a lackluster year for sales.

              Comment

              • CaptainZombie
                Brains
                • Jul 2003
                • 37851

                #322
                Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

                Originally posted by roadman
                They already tried that in 2005 and it wasn't working.

                An ex-EA employee was already quoted in this thread. The NFL was making less money with multiple licenses vs giving a company with exclusivity.

                The NFL will opt to take the more money deal vs multiple licenses.
                Plus I think when 2K sold NFL2K5 for $19.99 out of the gate, didn't that really piss off the NFL? I could be wrong, but I thought they did get upset since it came off as their brand was being cheapened at $20.
                HDMovie Room

                Comment

                • EddieV
                  Banned
                  • Jan 2011
                  • 66

                  #323
                  Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

                  Originally posted by bkrich83
                  That class action lawsuit has like zero traction. I would be shocked if anything comes of it.
                  Actually, if you call surviving EA's motion to dismiss, and defeating EA's attempt to prevent a class from being certified, a success -- then I'd say it does have traction. Our courts are just slow moving...give it a bit more time and it will be in the news again.

                  Comment

                  • coogrfan
                    In Fritz We Trust
                    • Jul 2002
                    • 15645

                    #324
                    Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

                    Originally posted by LiquorLogic
                    Why wouldn't the NFL award a non-exclusive license if their were no other options ? If EA decided that they didn't want to pay for it anymore, and no one else did, then the NFL either generates no revenue from video games, awards a cheaper exclusive license, which wouldn't make any sense, or awards multiple licenses ( at a cheaper price) to make up the difference.
                    It's my understanding that EA is currently paying approx twice as much per year as the league used to earn from all of it's videogame licensees combined. Imo that alone pretty much rules out the NFL ever returning to a multiple licensee setup. If EA were to decide at some point in the future that 200% is simply too much, it's likely that the league would counter by offering exclusivity at a reduced rate.

                    Comment

                    • bkrich83
                      Has Been
                      • Jul 2002
                      • 71582

                      #325
                      Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

                      Originally posted by EddieV
                      My guess is the legal uncertainties had at least something to do with the 1 year term of the extension. No reason for the NFL and EA not to do a 4 or 5 year extension otherwise. A year from now we should have a better idea of where the EA-NFL deal stands from a legal standpoint.
                      The one year deal was basically a compromise in the face of a potential NFL work stoppage.
                      Tracking my NCAA Coach Career

                      Comment

                      • jjsmitty34
                        Rookie
                        • Jul 2006
                        • 259

                        #326
                        I would just like them to make madden for the PC again. Thats all, come on EA make it happen.
                        .

                        Comment

                        • bkrich83
                          Has Been
                          • Jul 2002
                          • 71582

                          #327
                          Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

                          Originally posted by EddieV
                          Actually, if you call surviving EA's motion to dismiss, and defeating EA's attempt to prevent a class from being certified, a success -- then I'd say it does have traction. Our courts are just slow moving...give it a bit more time and it will be in the news again.
                          That really means little. Is their precedent for this?

                          I get the desire for people to want this to happen. But believing in these lawsuits amounts to little more than wishful thinking.
                          Tracking my NCAA Coach Career

                          Comment

                          • EddieV
                            Banned
                            • Jan 2011
                            • 66

                            #328
                            Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

                            Originally posted by ryan36
                            No you're wrong the 1 year extension has to do with a potential lockout and a lackluster year for sales.
                            I understand that's the perception. Why do you think EA has refused to comment or answer any questions about the extension? And, if the deal is working out so great for both sides, why didn't they re-up it for 3 or 4 years like last time? It's just my guess, but I think the uncertainties of all the pending litigation had at least something to do with it. Again, we should have some more answers on that stuff in another year.

                            Comment

                            • coogrfan
                              In Fritz We Trust
                              • Jul 2002
                              • 15645

                              #329
                              Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

                              Originally posted by CaptainZombie
                              Plus I think when 2K sold NFL2K5 for $19.99 out of the gate, didn't that really piss off the NFL? I could be wrong, but I thought they did get upset since it came off as their brand was being cheapened at $20.
                              That, and the fact that it cut into the amount the league earned in licensing fees:

                              Originally posted by DrJones
                              In the "olden days", the 3 companies paid the NFL/PA a royalty per unit sold, at roughly 10%. Let's say the total football market is about 6 million units. 6 million x $60 x 10% = $36M annually to the NFL. The current EA deal with the NFL pays them between $60M-$70M per year, regardless of units sold.
                              The old deals were based on sales figures, the current deal is a flat fee up front.
                              Last edited by coogrfan; 02-16-2011, 01:57 PM.

                              Comment

                              • EddieV
                                Banned
                                • Jan 2011
                                • 66

                                #330
                                Re: EA/NFL Extend NFL Exclusive License by One Year to 2013

                                Originally posted by bkrich83
                                The one year deal was basically a compromise in the face of a potential NFL work stoppage.
                                Maybe you're right, maybe I'm right -- guess we'll never know.

                                Comment

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