American Needle Won! NFL Exclusive Deals May Be A Thing Of The Past

[aholbert32]

Quote: Originally Posted by doctorhay53

Your logic is perfect....except one of your assumptions I'm not certain is correct. Are video games team merchandise? Even if this ruling applies directly to video games, there are significant problems for game DEVELOPERS trying to jump into this market without 32 teams and the NFLPA support. I don't believe there is any antitrust situation that can force the NFLPA to sell it's license to anyone. And what if there are 4 developers wanting to make games, but they can't get more than 20 teams to sign on? Do you really think they will all just make a game with 20 teams and 12 fake ones, with no real players? Realistically I see a small chance that this ruling leads to 2K (only) getting back in on the market 5 years or more from now. Maybe.

1) Yes, Video games are considered team merchandise. The NFL promotes it as such and it features team trademarks.

2) Teams are not going refuse money from a license fee so you arent going to have games where only 20 teams agree to be in a game. Lets say for arguments sake that the license fee is 2 million per team. There isnt a team in the league that would leave that money on the table.

Same thing goes for the NFLPA. The NFLPA would be insane to leave licensee money on the table. Video game companies have made games with only the NFL license in the past. With all the customizatiojn options that come with games, I wouldnt be shocked to see an NFL game with out the NFLPA.

The only reason the Madden exclusive deal was done was because EA was willing to pay a ridiculous amount and those deals were permitted in the eyes of the law. Now that the SC has ruled against those deals, its doubtful tha EA would agree to pay that amount again.

[doctorhay53]

Quote: Originally Posted by Nintari

Five years or more? What? At the latest it would be at the end of the current contract. At the earliest, next year though that would all depend on whether or not they could develop their game in time (something I doubt but who knows). See, the thing here is, if it's now illegal for exclusive deals, I believe all current exclusive deals would be nullified under the law. But even if I'm wrong, it won't last past this current deal which means at the latest, we'll see a new game at the end of the this one.

This is a good point, and I wonder if we'll see a story at least discussing this sometime in the near future. However, if it doesn't immediately nullify the deal with EA, you shouldn't assume unwaveringly that there will be a new game when the current deal runs out just because of this ruling.

[spit_bubble]

Quote: Originally Posted by aholbert32

...The only way to get around this is if the NFL raises the license fee so high that only a select number of companies can afford to purchase one...

Quote: Originally Posted by thudias

Ok fine so they make it appear like they tried to work with "other" companies..still tough to prove. They will not be as blatant as they were against American Needles. So a few companies will sue the NFL (all 32 teams) will show they tried to negotiate other deals on the best efforts basis but in the end the company they colluded to go with all along will win the bid. After a while companies will stop suing.

Ummm... If the ruling goes against the NFL I really don't see them trying to circumvent a court decision in any way.

The NFL has been vying for broad antitrust protection so they can have firm control over their league. This falls in line with pretty much everything you see out of the league and the actions they take... Having control and the ability to dictate the terms of their product...

But they won't for a minute try to weasel their way around law. For a league that stands on fairness and being upright, it just wouldn't make any sense for them to do so, nor would it be in line with what they are about.

[sportzbro]

Ok, say this goes to the lower courts, get passed/AN wins again or whatever in the next couple months...

Does that mean that sony, 2k Sports, Nike, etc. can start filing lawsuits immediately following that ruling? Or do any pre-existing exclusivity deals remain in affect until they run out?

[scamden311]

Quote: Originally Posted by ODogg

The question now is do we run the risk of seeing so many NFL video games that the products become garbage and the license means much less. We as consumers may go from one extreme to the other.

That's the beauty of the free market. The good games will sell, the bad ones won't.

[aholbert32]

Quote: Originally Posted by thudias

Ok fine so they make it appear like they tried to work with "other" companies..still tough to prove. They will not be as blatant as they were against American Needles. So a few companies will sue the NFL (all 32 teams) will show they tried to negotiate other deals on the best efforts basis but in the end the company they colluded to go with all along will win the bid. After a while companies will stop suing.

You dont understand how licensing works. There is no bidding. Its a licensing deal.

I work for a major cable company with hundreds of trademarks. I spent a year doing noting but these deals. We license them out to hundreds of companies a year. There are only three requirements: 1) That the merchandise reaches our standard of quality. (a list of requirements provided to each potential licensee) 2) We get final approval over the product and 3) the licensee pays the license fee plus royalties. Thats it.

[aholbert32]

Quote: Originally Posted by BORN4CORN

Ok, say this goes to the lower courts, get passed/AN wins again or whatever in the next couple months... Does that mean that sony, 2k Sports, Nike, etc. can start filing lawsuits immediately following that ruling? Or do any pre-existing exclusivity deals remain in affect until they run out?

Depends on what the NFL decides to do. If they choose to extend the deal, 2k or others may file suit immmediately.

[tktnuri]

I would like an updated Starter jacket.....anyway hope this does make room for more competition in the jersey and apparel market. Having Reebok and their prices really limits what I buy each season.

Maybe this ruling will bring on lower prices and officially licensed apparel and other products.

Had EA ever broke even from the exclusive deal, or has it profited so greatly that the deal was good? Last I remember the profits compared to cost wasn't so great and the league benefited more.