EA and FIFA renewal talks stuck on license cost – report
Posted On October 14, 2021
Electronic Arts and FIFA are somewhat in a cost dispute, according to a New York Times report indicating that contract renewal talks have stalled.
With EA’s current 10-year contract with FIFA set to expire after the 2022 World Cup, it appears that stalled negotiations over EA’s ability to use the FIFA brand and FIFA World Cup mostly boil down to money.
According to the report, FIFA wants more than double what EA is currently paying. The double would mean that EA would have to pay the organization $ 1 billion for each World Cup cycle that takes place every four years. Currently, the organization is earning $ 150 million from EA for the FIFA license.
Besides money, the report also says another sticking point is what exclusive player rights should include. FIFA wants to limit EA’s exclusivity so that it can seek new sources of revenue for bookable rights. But EA is keen to expand by including gaming highlights, arena video game tournaments and digital products such as NFTs, according to the New York Times.
If the two companies failed to come to an agreement, the franchise would no longer carry the FIFA branding or anything related to FIFA. Failure to sign a new contract would not affect other licenses, such as player names and tastes, as EA and FIFRO recently signed a new contract.
That would, however, require EA to change the game of the nearly 30-year-old franchise, possibly to EA Sports FC, which was recently filed by the company. The possibility of a new name for the franchise was raised by EA Sports GM Cam Weber last week.
The loss of FIFA’s branding may or may not hamper the sales of future football / soccer projects for EA, but many seem to think that the FIFA organization could be affected due to the lack of exposure outside. in the field of sport, not to mention the fact that she would give it up. the $ 150 million a year he makes from EA alone.
The FIFA series has sold over 325 million copies in 2021 and has grossed over $ 20 billion since 1993. The most recent iteration, FIFA 22, was released on October 1 and, last week, had 9.1 million players with over 7.6 million. Creation of Ultimate Teams and over 460 million matches played.