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Ea And Nfl Exclusive Licensing Agreement

September 18, 2021 | By More

“We believe that the decisions of the National Football League and PLAYERS INC to grant an exclusive license for video games do a huge disservice to consumers and sports fans whose funds end up supporting the NFL, limiting their choice, limiting creativity and almost certainly increasing the price of games. While some football fans may have hoped that the NFL will expand its license to other sports game franchises like 2K, EA and its Madden series will remain the only way to play simulation football for the foreseeable future. 2K Sports, owned by competing video game publisher Take-Two Interactive, signed a contract with the NFL in March granting it the rights to produce non-simulated football games. This means that 2K cannot revive its competitor Madden NFL 2K and is limited to what the EA and NFL agreement calls “arcade games, youth games, and casual/portable games.” It is likely that the agreement will also have a negative impact on consumers. With fewer choices, competition theories no longer apply. Some industry insiders speculate that the exclusive deal was accepted by the NFL after Take-Two lowered the price of its 2K5 product earlier this year. No licensor likes to have a fight for prices where brand value is at stake. At the same time, exclusive licenses in the world of sports are the norm rather than non-exclusive licenses. The NFL`s clothing license is exclusive to Reebok, as well as the beverage license with Gatorade. This is no different from the NFL, which grants exclusive “Sunday Ticket” rights to DirecTV.

Certainly, our experience at home would have improved over the past 20 years if DirecTV had had some kind of competition. EA Sports retains exclusive rights to publish NFL video games in the simulation style, such as the “Madden” franchise, at least until the 2025 season. The agreement could be extended until the 2026 season, depending on its achievement of revenue targets. Update: Ea`s five-year expansion from 2021 to 2026 is worth $1.5 billion, with the share being “at least $1 billion for the NFL and $500 million for players,” action Network`s Darren Rovell reports. In addition to the fees EA pays to the NFL and NFLPA, according to Rovell, the deals include a total of $500 million in “marketing commitments.” According to Ben Fischer of Sports Business Daily, the proposed contract would extend the exclusive agreement between the NFL and EA Sports until the 2025 season. A one-year add-on that would take the deal through the 2026 season depends on EA Sports “hitting certain revenue targets,” Fischer reports. Electronic Arts` Madden NFL series will remain the city`s only game for some time when it comes to football simulation video games. The company announced Thursday that it has agreed to a “multi-year” extension of its exclusive licensing agreements with the NFL and nfl players association, leaving the door closed to the possibility of the league opening the simulation license to other game publishers in order to get into the battle. EA Sports will collaborate with both the NFL and nfl players association on future projects, including new video game franchises and an increased presence in the increasingly competitive eSports industry.

Since 2005, the company has held the exclusive rights to NFL games in the simulation style. The company did not provide financial details or the exact duration of the agreement first signed in late 2004 that allows EA to use NFL teams and players in its football simulation video games. The Madden NFL video game series will be the only game of its kind on the market in the coming years, after publisher Electronic Arts struck terms for a renewed licensing deal, the league announced Thursday. . . .

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