Quantcast
NFL extends EA's exclusive Madden contract through 2013 - Destructoid

DestructoidJapanatorTomopopFlixist



NFL extends EA's exclusive Madden contract through 2013


7:30 PM on 02.14.2011
NFL extends EA's exclusive Madden contract through 2013 photo



If you're an ESPN NFL 2K5 fan who happens to be single today, then this news isn't going to make your Valentine's Day any better.

According to a SportsBusiness Journal report, the NFL is doing Electronic Arts a big favor: the league has reduced the fees for its exclusive contract with EA Sports for the publisher's Madden NFL videogames, and in addition, has extended the deal by a year -- through 2013. The ominous prospect of an NFL lockout (and accordingly, the possibility that there will be no football season this fall) is leaving in the lurch companies who have similar licensing contracts with the NFL, but then, there's nothing quite like Madden.

As a result of the looming lockout, EA made conservative forecasts for its revenue this year, since Madden is such a perennial big seller -- in a recent investors' call, EA CFO Eric Brown explained that the publisher's financial expectations take into account the assumption that a lockout will occur, and that it will wipe out the 2011 NFL season. In addition, the publisher reportedly requested in October that its scheduled payments to the NFL for 2011 be reduced by $30 million.

The new terms of the agreement were not disclosed, but Wayne Weaver -- owner of the Jacksonville Jaguars and chairman of the league's Business Ventures Committee -- noted that the restructured contract is an acknowledgment of the "difficult environment" that the potential lockout has created. It's a mutually beneficial agreement between the NFL and one of its "core partners," said Weaver:

Maybe it makes some sense to extend something out longer and give our partner some relief in the short term but gain something on the back end.

So the deal, which was originally signed in 2005 for three years and renewed for another five years in 2008, has now been extended for one more year. That means that the next NFL-licensed football videogame that could possibly have direct competition is Madden NFL 15.

Don't hold your breath, though. The exclusive contract is simply too lucrative for both sides -- the five-year agreement that was signed in 2008 is estimated to be worth hundreds of millions of dollars in guarantees and royalties -- so it would be silly to let the deal ever run out as long as it remains profitable.

We contacted EA Sports for this story, but the publisher had no comment.

NFL gives EA a break [SportsBusiness Journal via Pasta Padre]






Comments not appearing? Anti-virus apps like Avast or some browser extensions can cause this.
Easy fix: Add   [*].disqus.com   to your software's white list. Tada! Happy comments time again.

Did you know? You can now get daily or weekly email notifications when humans reply to your comments.






Sports

1:45 PM on 04.17.2014
Here's what MLB 14 The Show looks like on PS4

MLB 14 The Show has made some welcomed strides forward on PS3 and Vita, from three system cross save to universal profiles to save data that carries over year after year. But the PS3 version does show its age, so if you want...more



6:30 PM on 04.16.2014
In BaraBariBall you lose your balls when you jump

I played BaraBariBall over a year ago at GDC 2013 and it was fun as heck. I liked it BaraBari much. But it's still not out. Not yet, anyways. It's coming this year to PC, PS4, and PS3 as a part of the amazing Sportsfriends. ...more



12:00 PM on 04.10.2014
Review: MLB 14 The Show

I was ready for last year’s The Show to be its PS3 swansong, I was feeling it. It’s not that it wasn’t good. It was as good as it ever was. But there were signs of age. The same old horrifying fan models in ...more



View all Sports






Back to Top




All content is yours to recycle through our Creative Commons License permitting non-commercial sharing requiring attribution. Our communities are obsessed with videoGames, movies, anime, and toys.

Living the dream since March 16, 2006

Advertising on destructoid is available: Please contact them to learn more