Madden 12 News Post

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

06:10 PM - February 14, 2011 by RaychelSnr

The Sports Business Journal is reporting that the NFL and EA have come to terms on extending the current exclusive deal one more year with the uncertainty surrounding the 2011 NFL Season.

Quote:


	"The NFL has restructured its lucrative licensing and sponsorship contract with Electronic Arts to account for the sport�s uncertain future, significantly reducing the video game maker�s contractual obligations next season but adding a year to the deal, according to several well-placed sources. The contract now runs through 2013. The league is believed to have so far rebuffed pleas for fee reductions from other licensees and sponsors, many of which, like EA, find it difficult planning for the next season under the threat of a work stoppage. The league�s collective-bargaining agreement with the players expires March 4, and the two sides are far apart on reaching a deal. EA, however, is a special case, with its iconic �Madden� video game title. The licensing deal it agreed to with the league in early 2008 is believed to be worth well into nine figures in guarantees and royalties over its original five-year term. That stands as one of the most, if not the most lucrative non-TV contract the NFL enjoys. The NFL Players Association, which signed a companion EA deal for rights to the players, reaps regularly between $30 million and $40 million annually, according to the union�s annual filings with the Labor Department. The league deal allows EA to use team colors, names and logos."

This basically means that EA has exclusive rights to Madden now until after Madden NFL 14 -- or roughly right about the time the next generation of consoles are set to hit.

This just shows how strong of business partners the NFL and EA Sports are at this point. The NFL is giving EA a break on payments this year and has basically given them an additional year as a make-up of sorts to make right. Also, if you read my 2011 Predictions Post back in January, you saw this was my first prediction, that the deal would be extended in some way this year.

So in that respect, this news is not unexpected -- and with the deal stretching into the next console generation, I have serious doubts any other company is going to be in a position enter the market anytime soon due to the extreme cost of entry into quality sports game development that will be present at that time.

Thanks to Pasta Padre for the news tip.

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Member Comments

# 281 coogrfan @ 02/16/11 02:21 PM

Quote:

Originally Posted by LiquorLogic


	That wouldn't make much sense for the NFL. They could cut their current price in half, but award licenses to two companies and make just as much.They could award three publishers licenses for 80% and make %40 more than they were making with EA.

It doesn't really work that way. The incredibly favorable deal the NFL currently enjoys (doubled annual revenues and a flat fee up front as opposed to the time honored, industry standard "royalties based on number of units sold") is based on being able to offer added value to a publisher in the form of exclusivity in the marketplace. Without it, the value of an NFL license to a publisher is diminshed to the point that no one in their right mind would even consider such a deal.

If the NFL went back to a multiple partner model it would almost certainly mean that the total amount of money the league brings in though video game licensing annually would return to something like pre-exclusivity levels. To the best of my knowledge the NFL has never accepted lower rights fees for anything. For that reason, I believe exclusivity in one form or another is here to stay.

# 282 videlsports @ 02/16/11 02:23 PM

@ SageInfinate: you posted some very good points.. I had to step back and re think things. Ea' sports developer just does not get it when it comes to important things to us gamers like Presentation, and Graphics. I for one would like Larger Player models Start from there then change the way the Game is played. Get Rid of the most of the Code, and Start fresh, but the BIg wigs won't do that. I would like for the FIFA team or the NCAA team to Handle madden for me to even look in it's direction.

well @ least I Like NCAA
They might have my money in JULY, BUT THEY WON'T HAVE IT IN AUGUST.

# 283 DaReapa @ 02/16/11 02:55 PM

Quote:

Originally Posted by SageInfinite


	As much as I don't like what EA and the NFL have done, I'm more mad at the fact that Tiburon can't make a football game that can rival The Show and NBA2k. It's just disappointing year after year to see that they just don't provide the type of football experience I'm looking for. I would LOVE to have a choice, but if Tiburon would make football games that made me not care if there was a choice or not it would be great. They still haven't made a football game that compares to what we got last gen as far as providing a total experience. It's just sad for me to think that they just don't have it in them. I skipped Madden 11 for the first time ever, and I'll probably be doing it again this year. And while NCAA 11 is the best it's been this gen, as far as a total football experience during gameplay, it's still lacking.

I fully agree with what you have posted. But I think others are upset by the partnership between EA and the NFL particularly because for an entire generation of gaming, Tiburon hasn't shown that they have, or will ever have, the capabilities of developing a complete experience along the likes of what we've all witnessed last gen. And the EA/NFL partnership does nothing more than create a vessel to allow that trend to continue.

As for me, personally, I'm not upset with neither EA, the NFL, nor Tiburon - but moreso the consumers who continue to blindly purchase Madden annually giving EA the fuel it needs to keep the license exclusive.

And for the record, I feel the exact same way as you about NCAA 11. NFL 2K5 has become a standard for me to measure all others by.

# 284 stp2081 @ 02/16/11 02:59 PM

I echo the many posters here who have expressed extreme disappointment, when I say that this is extremely, extremely disappointing.

But seriously, I blame the NFL much more than EA. The NFL needs to learn to appreciate its fans more like the NBA does (at least in this major regard).

# 285 ComfortablyLomb @ 02/16/11 03:18 PM

Quote:

Originally Posted by 43M


	I honestly dont even care if Madden's presentation is as good as 2k5. DONT GET ME WRONG, I would love it if it was, but hell, at this point Id be happy just seeing it get in the same ball park. Until the commentary is overhauled, in game presentation will always seem lackluster. People keep blaming the commentators, but thats not the real problem at all. Its the choppy, pieced together way EA does their audio announcing and the fact that all the comments are horribly generic and cheesy. Makes immersing yourself into the game practically impossible.

Presentation in Madden lacks booth banter - the sort of running chatter that fills otherwise dead air. Until the devs decide to invest major time and effort into weaving some sort of banter in between the play by play calls the "television presentation" is going to feel soulless and empty.

And so as to not be completely off topic... news of the extension is terrible news for us lowly consumers.

# 286 coogrfan @ 02/16/11 03:24 PM

Quote:

Originally Posted by LiquorLogic


	I know that, but the point is that the exclusive deal is really expensive because there's only one company that revenue is coming from. An exclusive contract, and a reduced rate, probably wouldn't be worth it financially to the NFL; if it was, EA, if they had the mind set that they weren't paying for an exclusive license, probably wouldn't think it was worth it financially.

How do you figure?

If the NFL was making "x" per year back in 2004, and they're making "2x" now, then surely a renegotiated exclusive deal would be better for both parties? After all, from EA's pov having exclusivity is better than not, and as far as the league is concerned "1.5x" is still greater than "1".

Quote:

Originally Posted by LiquorLogic


	Exclusive licenses are really expensive; they have to provide the licensor with a higher amount of money than they would make with multiple licenses. Remember, simulation style publishers, 2k and EA, aren't the only publishers that would receive licenses if the the NFL went the multiple route. There would be games on people's Iphones, there would be arcades style games, and many more types of games using NFL teams, players and trademarks. No exclusive license at a reduced rate is going to make up for all that. There would be a lot more than two or three licensees.

Those sort of deals already exist, EA's contract with the NFL covers console titles only.

# 287 SageInfinite @ 02/16/11 03:27 PM

Quote:

Originally Posted by DaReapa


	I fully agree with what you have posted. But I think others are upset by the partnership between EA and the NFL particularly because for an entire generation of gaming, Tiburon hasn't shown that they have, or will ever have, the capabilities of developing a complete experience along the likes of what we've all witnessed last gen. And the EA/NFL partnership does nothing more than create a vessel to allow that trend to continue. As for me, personally, I'm not upset with neither EA, the NFL, nor Tiburon - but moreso the consumers who continue to blindly purchase Madden annually giving EA the fuel it needs to keep the license exclusive. And for the record, I feel the exact same way as you about NCAA 11. NFL 2K5 has become a standard for me to measure all others by.

Good post. Like we've said the partnership does nothing but excuse any short comings of Tiburon/EA with the Madden series this gen.

I also agree with you about the fans. I was one who got suckered into the hype, last year I stood strong and did not purchase because EA showed me nothing that I was interested in. I wish we all could show EA we deserve better by holding out.

I can't knock EA for trying to make as much money as possible from a business standpoint, but with the constant shortcuts and tactics(discouraging you from buying used), it just seems obvious that they don't have us as gamers in mind.

# 288 STLRams @ 02/16/11 03:30 PM

Quote:

Originally Posted by droopizzle34


	I don't want to see ANY company with an exclusive license. Its all bad no matter who would have it cause we are limited to one game. 2K has no vote of confidence because of MLB 2K....that game is not good and unless u go buy a PS3 you are limited to only that game for MLB on the 360. NBA 2K11 has had NBA Live to push it to good heights,but yet you can't ignore the horrible online experience..so there's really no vote of confidence with 2K other than the nostalga of 2K5's greatness... I want CHOICE....I want competition....i want to be able to have a choice to go get a different brand if I don't like the other one.And it is proven these companies(EA with the NFL and 2K with MLB)rest on their laurels and don't give 100% when they have no one to push them... bring back choice in NFL simulation football and break us out of this prison NFL...down with this exclusive license and make video game football fun again by giving us CHOICE...

And I agree with you there. I don't think no company - not even as great as 2K Basketball should have a exclusive deal. We the buyers are the ones who suffers from this because we don't get a choice of what to buy and play. The NFL,NBA, MLB need to realise this, so do EA Madden and 2KBaseball - We the fans don't like this, plain and simple.

# 289 Keenan G. @ 02/16/11 03:30 PM

Well, that sucks. Another sub par Madden game by EA. No matters I wont be getting M12. I will be playing The Show until NBA2k12 comes out.

Having bad Madden games have put me on to other games ie The Show. Never realized how great and detailed that game was until I played it last season. Excellent game.

# 290 coogrfan @ 02/16/11 03:40 PM

Quote:

Originally Posted by EddieV


	You don't think the same 5 million people wouldn't buy Madden if EA didn't have the exclusive license?

Some would, some wouldn't, but that's beside the point. There are inherent advantages to being "the sole videogame of the NFL" that extend beyond just sales numbers.

# 291 coogrfan @ 02/16/11 03:46 PM

Quote:

Originally Posted by EddieV


	Besides the point? Really? It would seem to me to make more sense to pay 1x for those 5 million copies sold than pay 2x for the same 5 million in sales. But that's just me.

Don't get me wrong--sales are important. I'm saying there are also certain intangible benefits to being "The Official ______ of the NFL".

# 292 droopizzle34 @ 02/16/11 03:50 PM

after reading an article on pasta's site today,this is all the NFL's doing. They are the reason the exclusive license exists and it looks like there is no relief in sight. Its really sad because I believe they only look at this from a business aspect and not seeing the depression they are putting on us as consumers.
But EA gets no pass from me,I don't feel like they care about delivering a quality game. As much as the developers complain about people attacking them and dissecting them they don't see how catering to certain audiences and leaving out others builds frustration. Do they really do all they can or are they just sitting back putting out half effort knowing they're the only game in town. Sometimes I feel they do this. The NFL's love for exclusive rights in nice on Sundays for beer,sunday ticket,and apparrell,but it is terrible for video games....period.

# 293 droopizzle34 @ 02/16/11 03:53 PM

Quote:

Originally Posted by coogrfan


	Don't get me wrong--sales are important. I'm saying there are also certain intangible benefits to being "The Official ______ of the NFL".

from a business aspect yeah,but I bet you the developers have headaches everyday knowing they are some of the most hated people in the world for the effort they give on Madden. I bet they wish someone else had to deal with the hate and backlash they catch on a daily basis. They not spending those millions with a smile...lol

# 294 roadman @ 02/16/11 03:56 PM

Quote:

Originally Posted by droopizzle34


	after reading an article on pasta's site today,this is all the NFL's doing. They are the reason the exclusive license exists and it looks like there is no relief in sight. Its really sad because I believe they only look at this from a business aspect and not seeing the depression they are putting on us as consumers. But EA gets no pass from me,I don't feel like they care about delivering a quality game. As much as the developers complain about people attacking them and dissecting them they don't see how catering to certain audiences and leaving out others builds frustration. Do they really do all they can or are they just sitting back putting out half effort knowing they're the only game in town. Sometimes I feel they do this. The NFL's love for exclusive rights in nice on Sundays for beer,sunday ticket,and apparrell,but it is terrible for video games....period.

Do you really think the developers are putting forth half the effort? If that happened in my job, I'd be shown the door.

The developers are part of the whole picture. People have a tendency to forget about the marketing department and the suits above. Marketing has a huge input on the game.

In the end, does it really matter where and who you shake your fingers at? It won't change a thing.

# 295 kjcheezhead @ 02/16/11 04:26 PM

Quote:

Originally Posted by SageInfinite


	As much as I don't like what EA and the NFL have done, I'm more mad at the fact that Tiburon can't make a football game that can rival The Show and NBA2k. It's just disappointing year after year to see that they just don't provide the type of football experience I'm looking for. I would LOVE to have a choice, but if Tiburon would make football games that made me not care if there was a choice or not it would be great. They still haven't made a football game that compares to what we got last gen as far as providing a total experience. It's just sad for me to think that they just don't have it in them. I skipped Madden 11 for the first time ever, and I'll probably be doing it again this year. And while NCAA 11 is the best it's been this gen, as far as a total football experience during gameplay, it's still lacking.

I totally disagree. All my anger in this situation is directed at the NFL. If EA/Tiburon could make a satisfactory game, that doesn't mean gamers still aren't getting shorted. For example, 505 games and their Euphoria technology could change the way football are played forever if it was used by the right developer.

Unfortunately because of the NFL's love of exclusivity we will never know. We have to take EA's word for it. The same EA who spends less on development of Madden because of how much they paid for the license. The same EA who said it was impossible to do what Gameday managed to do and had to eat crow and take a year off in 1999.

Because the NFL closed the door and any other designers making a game and EA spent so much on the license they are unwilling to throw money into development costs, football games will continue to be behind what the Show and NBA2k11 delivered.

7 years in and Madden has one of the worst superstar modes of any sports game, a barebones online and offline franchise mode, weaker mini game modes, a complete removal of tournament modes, historic rosters and playbook editors. All the while, they continue to spend fewer resources they do have to improve areas like MUT and Madden Moments that will collect more revenue.

If the NFL charged a little less and cared more about its fans, EA would have more funds to put into Madden and the door would be open for new technology. It's the NFL and they are free to do what they wish, it's just sad to see their greed watering down the video gamers segment of their fanship.

# 296 mestevo @ 02/16/11 04:27 PM

Quote:

Originally Posted by DaReapa


	As for me, personally, I'm not upset with neither EA, the NFL, nor Tiburon - but moreso the consumers who continue to blindly purchase Madden annually giving EA the fuel it needs to keep the license exclusive. And for the record, I feel the exact same way as you about NCAA 11. NFL 2K5 has become a standard for me to measure all others by.

Maybe they aren't blindly purchasing it, maybe they're enjoying the game that is produced each year?

Madden and NCAA are easily the best investment of my video game dollars every year vs the time that I spend on them with few exceptions. When one has a stronger year or a feature gets more of my interest thats the game I'll gravitate to for the majority of the dozen or so seasons I'll play. So far only the unlicensed games have made me regret purchasing a football title, not Madden (or NCAA) having bought both titles every year since ~2005 and I've yet to go back a year or skip years because of some perceived slight or the humous 'they didn't change anything' that some like to claim. I am not sure how some of you guys define value from a video game purchase, but the time I am willing to give it is how I define it, and I am still playing a couple games/week of my offline franchise. I can't say I am doing that with any other game that I've had for 6 months.

As much as it pains some of you to hear, they are doing SOME things right. There's a ton I wish they'd improve or do but to generalize everyone who buys it as blindly doing so is as absurd as saying the developers themselves are only putting forth less than their full effort to do their jobs.

I enjoy the closest to football a video game can currently provide, I am annoyed but it doesn't ruin the game that they preview the QBs before every single game and then never 'follow that story', or that the announcing is not always that great (or ever is great at all). I get my money's worth though from my purchase, and look forward to the changes each year, some more incremental and some much more than that.

# 297 N51_rob @ 02/16/11 05:03 PM

Quote:

Originally Posted by roadman


	Do you really think the developers are putting forth half the effort? If that happened in my job, I'd be shown the door. The developers are part of the whole picture. People have a tendency to forget about the marketing department and the suits above. Marketing has a huge input on the game.

This. Competition breeds innovation, superior products, cheeper price point. Even in sports games where it could almost be considered a white-wash Baseball games, The Show is still pushing the envelop. I can almost say with 100% certainty that if there were two companies making NFL games this past year there is no way the Madden Dev team puts franchise mode on the back-burner for an entire dev cycle. In fact I would wonder if the person who made a decision like that would still be employed if there was more than one option in the market for an "Officially Licensed NFL Game."

# 298 roadman @ 02/16/11 05:07 PM

Quote:

Originally Posted by N51_rob


	This. Competition breeds innovation, superior products, cheeper price point. Even in sports games where it could almost be considered a white-wash Baseball games, The Show is still pushing the envelop. I can almost say with 100% certainty that if there were two companies making NFL games this past year there is no way the Madden Dev team puts franchise mode on the back-burner for an entire dev cycle. In fact I would wonder if the person who made a decision like that would still be employed if there was more than one option in the market for an "Officially Licensed NFL Game."

You can make a case either way. Someone in here showed where competition didn't make a difference.

Basketball games there is virtually no competition.

# 299 patsfan188 @ 02/16/11 05:18 PM

if franchise mode is not improved I will NOT by Madden this year. Im sorry EA nobody gives a **** about Madden Moments, hardly anyone even cares about MUT either give me, Offline Franchise, Online Franchise and Super Star Mode. Then ME= HAPPY

# 300 roadman @ 02/16/11 05:25 PM

Quote:

Originally Posted by patsfan188


	if franchise mode is not improved I will NOT by Madden this year. Im sorry EA nobody gives a **** about Madden Moments, hardly anyone even cares about MUT either give me, Offline Franchise, Online Franchise and Super Star Mode. Then ME= HAPPY

The revenue that they made off of MUT makes it very unlikely they give that up.

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