Don't Expect a Change in the NFL License Status Quo

Feature Article

Submitted on: 03/27/2013 by Matthew Coe

This past month has been a very eventful one for Electronic Arts and EA Sports. On Monday, March 18th, Electronic Arts announced that John Ricccitiello had stepped down as CEO. This was only weeks after Sim City released with terrible issues and was a company wide embarrassment. While both events may or may not be completely connected, this was industry changing news and it could perhaps signal a new direction for EA in the future.

At the same time, we are coming to the end of this console generation. Also of importance is that we are near the end of the exclusive deal between EA and the NFL/NFLPA.

If there was ever a time we could believe in the chance to see a change in the football gaming market, the end of a monopoly, and a return to competition, this is the time, right?

The Winds of Change, Calm As Ever

Both EA and the NFL have both been publicly happy with the current exclusive deal, with no comments from either side signaling that the business deal has been less than ideal for either party. The current deal technically ends after Madden NFL 25 releases and before the next iteration of Madden next summer. The NFL and EA Sports have already renewed the deal twice, once in 2008 and again in 2011.

Assistant Executive Director of External Affairs for the NFLPA, George Atallah actually took to Reddit recently and stated that "We have an agreement with EA and Madden. I have heard some opinions like yours, but honestly, EA is one of our best partners. I know they hear some of your input as well and work to improve the game every year.”

Attallah added, "One thing to clarify though, my job and the job of the NFLPA, is to ensure that the players' interests are top priority. I know that might not be the most popular answer, but it's our mission."

We haven't heard anything from the NFL publicly regarding it's position on the deal but one can only assume that they are satisfied with the control that they get by licensing the game only to EA Sports and working closely to decide what is included and how it's official video game is marketed.

Make no mistake, the exclusive license is all about money and control for everyone involved. The NFL wants to closely control it's image as a business and a sport and Electronic Arts wants the exclusive license to the most popular sport in the United States for it's flagship sports franchise in America.

Consequently, the NFL has possibly created a situation where EA Sports is their only potential dance partner if they are to continue the exclusivity that they desire in video gaming and in other areas of their business. EA knows this, as no other company is ready to take on the massive task that is building an NFL game from scratch and having it release within a year on a level that could compete with what EA does with Madden today. Pipe dreams aside, 2K's technology is incredibly dated at this point and their marketing prowess and ability to afford a deal that EA themselves wouldn't already be able to afford makes for an unlikely combination of the status quo changing.

Major League Baseball found themselves in a similar situation as the NFL, with no realistic options at the conclusion of an exclusive license but a strong desire to get another game out. The NFL will be wise not to repeat the same mistakes, and likely they are trying to not bend too much to Electronic Arts' desires. For their part, EA is likely negotiating far more favorable terms for themselves both financially and possibly with regards to length, as they do likely recognize the strength of their negotiating position.

The End of Competition

For every gamer hoping that 2K Sports will be able to “save” them from Madden NFL, it's tough to say, but it's time to snuff out the torch. 2K Sports hasn't made a licensed NFL game since ESPN NFL 2K5 on the Playstation 2 and Xbox. We are now almost two full console generations since that game was released in 2004. That leap is the equivalent of making a game on the PSOne and then having to jump to the Playstation 3 to develop a game in the same sport/genre.

All Pro Football 2K8 was considered a good but not great game, and the expectations for sports gaming and football games are even higher now. 2K Sports simply isn't in a position to make the jump to new hardware AND build a new football engine that could compete with Madden all within one year at this point. NFL 2K5 was an outstanding game for it's time, but it's also easy to recognize that the gameplay in 2K football is well behind Madden in most respects today.

The writing is on the wall, it is time to start talking about the end of NFL video game competition as the present situation and future outlook. Barring a huge string of unforseen events, EA isn't letting the NFL license go so long as the NFL will have them, and that continued partnership between both organizations appears to be exactly what the NFL wants with no evidence to the contrary. EA will be able to likely get a much more favorable deal than in 2004, possibly locking up the license through this upcoming console generation.

This isn't the end of 2K Sports though. NBA 2K, WWE, perhaps MLB, and other potential projects will all continue to flourish. However, when it comes to more than one NFL game releasing yearly, don't bet on it. That ship has sailed, as competition appears to be over in NFL gaming and Madden is almost certainly the only future option for sports gamers. As a football fan this is definitely not my favorite outcome, but it is the outcome we will get.

The continued persistence of the status quo may indicate competition may be over, but NFL gaming is not. Here is to hoping Madden NFL 25 is the best yet, it's our only option after all.

Member Comments

# 41 PacMan3000 @ 03/29/13 12:56 PM

After all these years, I'm still surprised there hasn't been a bigger outcry and outrage by gamers about the exclusivity deal.

If people walked into grocery stores across America and the only soda that was offered was Pepsi, people would be outraged. But for some reason, there doesn't seem to be much overwhelming furor about Madden being the sole NFL game you can get on store shelves. Not now, and in my opinion, not when the exclusive deal was finalized years ago, either.

# 42 cuttingteeth @ 03/29/13 01:00 PM

Quote:

Originally Posted by ratedmoney


	Sports games are different. The **** gamer wants to play with their favorite teams, not the Atlanta Rockers. Look at Backbreaker and All Pro Football. Decent games for what they had to offer but the lack of being actual NFL games ultimately hurt them with the ** gamer. You cant compare the Sims to video game football. Name the last generic sports title to come close to selling as much as the pro licensed sports title in its genre ? YOU CANT As far as your modding question goes THOSE PEOPLE ARE NOT THE ** SPORTS FANS. Those are the die hards like me and you. The **** sports fans are not on the forums looking for customizable rosters.

Ah, I see...you can't read between the lines of what I'm trying to convey. Have you ever used Teambuilder for the NCAA football games? It allows you to use any picture logo (so long as you resize it accordingly - easy to do) and upload it, and it becomes your helmet and/or jersey/pants logo and even your field/stadium logo. It works. I've created the Houston Oilers among many other NFL teams before. The only one I can't create accurately is how the Bengals are done, but I'm sure that's a short tweaking of code to allow for. I've created XFL, CFL, etc. teams. You can then put whatever names anywhere you want, too - your players size, weight, skin color, attributes, etc. exactly as you want...create a stadium close to exact or use established ones (when allowed). It's soooo close to the real thing.

The only other thing you are really making me understand is that you think the majority of folks are too lazy to do any of the work. I'll go with that...but it still wouldn't ruin the game selling any because all of you lazy mofo's would do the same thing you do now by downloading and uploading the changed files someone like me already did for you. Everything would cross-reference so well that it would still be a game the majority would purchase. If you wanted to customize it, it's for you. If you just want to DL what everyone else customized and/or tweak it a little when you choose, you could do that, too.

With all the combined (even little) things that you HAVE to do to Madden as is already, I don't see it being any different...even for the laziest, ****** gamer that absolutely loved Madden 13.

# 43 gr18 @ 03/29/13 01:13 PM

Quote:

Originally Posted by cuttingteeth


	Ah, I see...you can't read between the lines of what I'm trying to convey. Have you ever used Teambuilder for the NCAA football games? It allows you to use any picture logo (so long as you resize it accordingly - easy to do) and upload it, and it becomes your helmet and/or jersey/pants logo and even your field/stadium logo. It works. I've created the Houston Oilers among many other NFL teams before. The only one I can't create accurately is how the Bengals are done, but I'm sure that's a short tweaking of code to allow for. I've created XFL, CFL, etc. teams. You can then put whatever names anywhere you want, too - your players size, weight, skin color, attributes, etc. exactly as you want...create a stadium close to exact or use established ones (when allowed). It's sooo close to the real thing. The only other thing you are really making me understand is that you think the majority of folks are too lazy to do any of the work. I'll go with that...but it still wouldn't ruin the game selling any because all of you lazy mofo's would do the same thing you do now by downloading and uploading the changed files someone like me already did for you. Everything would cross-reference so well that it would still be a game the majority would purchase. If you wanted to customize it, it's for you. If you just want to DL what everyone else customized and/or tweak it a little when you choose, you could do that, too. With all the combined (even little) things that you HAVE to do to Madden as is already, I don't see it being any different...even for the laziest, ****** gamer that absolutely loved Madden 13 .

As flawed of a game as Backbreaker is people still went through the customization it provided with logos/uniforms.I've done community 2k5 rosters in the past that took quite extensive time.If a game were to give us the whole package of options that was also actually a good game there's no doubt that the majority here would be on board whether they were committed to customizing themselves or taking what some of us create.Granted most of us aren't ****** football fans.The general public would just buy the licensed game and make do.

# 44 SageInfinite @ 03/29/13 01:19 PM

Yeah the masses are trying to play with their favorite teams and their favorite players. I know people who don't even like NCAA because they say it's too "fake" because it doesn't have real players by default. Don't give the general public too much credit, lol, most don't really want to take the time to play a customized game. Why go through all that trouble when they can just buy Madden, which most enjoy as it is.

# 45 damedash @ 03/29/13 01:49 PM

Quote:

Originally Posted by simfballcritic


	*That, not that's

What up sim? Good to see you on here man...I hope with your help madden 25 will be a great game. Last year was the first year that I didn't purchase a madden game. I play sim style against users and the CPU to best replicate live sports action and when I play nba2k it is very enjoyable, but when I play madden it just doesn't feel sim no matter what sliders you adjust or difficulty adjustments. I want to see a discrepancy when I play against different teams. I want to be scared when Tom Brady spreads out my (redskins) defense and he is pointing out who the mike is. I want to see the QB walk up to the line and survey the defense before he hikes the ball. Is that too much to ask?

# 46 kjcheezhead @ 03/29/13 01:50 PM

Quote:

Originally Posted by tazdevil20


	NFL gaming is dead. If you don't like Madden, then you won't be playing an NFL game. Ever. This deal will be in existence for as long as EA is in business. I didn't buy madden from 2001 to 2010. I bought 11 new (big mistake) then I got 12 and 13 used for 20.00 off of craigs list. I won't even do that now. I've completely lost interest. It's an embarrassingly bad product made by really bad developers. Football gaming was really the only kind of gaming I was interested in, but I've now lost interest. I love the NFL and always will, but no more games. 2k is still 1000x better on the field than Madden. EA will not change anything. They will continue to push a call of duty style development process with Madden. There is a new generation of gamers coming up. They have never played any other game so Madden is very appealing with its flashy graphics and catchy marketing schemes. I've said this from the beginning and I will continue to say it. EA will not only renew the license, but it will be a very long deal. Maybe even 10 years. Not only that, but it will be financially favorable to EA. It will be much cheaper. Also - I can assure you that 2k is NOT working on a football game. I do know they WANT to make one, but you don't pay for resources to work on something that may never bring in revenue. No company will ever do that. At the end of the day, play the games that you enjoy that are actual professional grade products. I've found that there are some games being made that aren't sports games that are absolutely amazing, and worth my time and money. They are fun, immersive and tons of effort was put into them to stretch the limits of my imagination. That is everything that Madden is NOT. I'm with KJ - I've lost all interest in NFL gaming now. I'll play a game of APF 2k8 where it's realistic football with amazing gameplay if I really need to play a football game. I can totally empathize with everyone saying to speak with your wallet. However, Madden is just too big of a brand name. It's not going to change anything. I will continue to speak with mine, but at the end of the day, it won't make a difference. Quite frankly, I've grown really tired of this whole thing. The arguments, venom, disputes, etc. etc. that have all resulted from a game - it's silly and there are better things to discuss/do. At this point - you can't argue with the Maddenites. They will tell you that your only two choices are fall in line and put up with the game or simply don't buy it. As much as that might suck, they are right.

I haven't totally given up hope. EA couldn've locked up the license for the next ten years already but instead chose to ask for a $30 million reduction just to extend for 1 year. They also let the NCAA exclusive expire. Loss of sales can affect the deal. According to this article the NFLPA agreement costs EA $30 - 40 million annually. That adds up to 500,000 - 650,000 sales (assuming EA gets 59.99 for each sale which we know it doesn't). Then they still have to give the NFL their cut.

With no agreement in place for Madden 15, if there was ever a time to pass on Madden and speak with your wallet it's now.

So it's wait and see for me. I've spent the last few years playing other games. Thanks to the football video game situation, I bought Rocksmith and spent the past year learning guitar. Bandfuse is set to release this spring so I'll just keep enjoying my new hobby. If the deal ends, great. If it doesn't, oh well. I'm with you on the arguements, venom and disputes getting tiring. I've got better things to do with my time.

# 47 Crimsontide27 @ 03/29/13 02:00 PM

Quote:

Originally Posted by PacMan3000


	After all these years, I'm still surprised there hasn't been a bigger outcry and outrage by gamers about the exclusivity deal. If people walked into grocery stores across America and the only soda that was offered was Pepsi, people would be outraged. But for some reason, there doesn't seem to be much overwhelming furor about Madden being the sole NFL game you can get on store shelves. Not now, and in my opinion, not when the exclusive deal was finalized years ago, either.

I disagree. There has been an outcry by a ton of gamers about the exclusive agreement, its just that its been censored and suppressed. If you complained about the agreement here, then you were infracted or banned. If you complained about it on any numerous fansites such as maddennation, maddenmania, traditionsports etc...you were infracted or banned. If you mentioned it on the official EA forums, then it was deleted as soon as it was noticed etc.

Pretty much the only places you can go and talk about it where it wont be censored is on websites that really have nothing to do with sportsgaming, such as Anandtech, Gamefaqs, and any other numerous sites that dont focus on sports gaming.

It is in the best interests of the main video game sports websites to keep EA in its good graces for access to devs and the perks that come along with it.

# 48 DaSmerg @ 03/29/13 02:06 PM

I agree with Matthew's general conclusion that we'll keep on seeing EAS/Tiburon's Madden product as the virtual NFL flag bearer but I don't agree with his premise of 'why'.

If you look at the NFL product licensing business model, its stuck in a exclusive contract business model, with EA basically along for the ride and reaping the benefits.

There's another question about who would be able to pony up the mega-bucks that an NFL and NFLPA licensing deal would require AND develop a competitive/compelling product.

I'd agree with some other posters that the competition and competitive pressure will come from the NCAA games with EA's court recorded mandate to no longer do exclusive deals in this area.

# 49 Crimsontide27 @ 03/29/13 02:12 PM

Quote:

Originally Posted by DaSmerg


	I agree with Matthew's general conclusion that we'll keep on seeing EAS/Tiburon's Madden product as the virtual NFL flag bearer but I don't agree with his premise of 'why'. If you look at the NFL product licensing business model, its stuck in a exclusive contract business model, with EA basically along for the ride and reaping the benefits. There's another question about who would be able to pony up the mega-bucks that an NFL and NFLPA licensing deal would require AND develop a competitive/compelling product. I'd agree with some other posters that the competition and competitive pressure will come from the NCAA games with EA's court recorded mandate to no longer do exclusive deals in this area.

It all depends on how much EA is willing to pay for the exclusive contract. There is no way they can agree to another $300m deal, and I dont know of any other company other than one that would put up that amount and they have yet to release a football title.

I dont think it would be a good choice for any other company to pony up that amount of cash for a title with very little market recognition, and as such, I dont see it happening. EA certainly didnt get the sales it was expecting from this agreement, nor the profits that were forecasted.

They are in financial trouble at the moment, so they dont have much cash to really toss around at this point. They may keep the agreement, but it will be for much less.

# 50 SageInfinite @ 03/29/13 02:38 PM

I could see a customizable football game being embraced on PC somewhat, but console no way. I just can't see it happening.

# 51 roadman @ 03/29/13 02:42 PM

Quote:

Originally Posted by Big FN Deal


	It's funny how people can say "it won't happen non-licensed football games don't sell" but that didn't stop APF from trying or BB after that, so another company or either of these, trying it again on the new consoles, IF the exclusive is renewed, is feasible.

I will agree with Big, that the potential is feasible, but probably not profitable. All other companies need to do is look at the profits of BB and APF going up vs Madden and they will probably turn the other cheek.

I don't know many companies out there that want to lose money or stay even.

Let's just say I need to be proven that a non-licensed game will make money before I jump on that bandwagon.

Two tried, but didn't succeed from a profit standpoint.

# 52 SageInfinite @ 03/29/13 03:15 PM

Quote:

Originally Posted by Big FN Deal


	That's just it though, the new consoles are being touted to be far more like developing for a PC game than for this gen consoles. Likely the old dogmas for console gaming this gen won't apply for the next. I think this will have a big impact on what is going down with the exclusive because it just seems like an obsolete notion going into this new era of gaming. By opening up the capability of the new consoles, it's also likely opening up the capability of the modding community and given the prospect of non-licensed football games becoming viable, I think with no company willing to pay a premium for a NFL exclusive license, the NFL is quick to offer multiple open licenses again, maybe this time at an upfront cost though.

I'm usually rocking with you BIG and I feel your optimism, but I just cant see a company in todays climate taking a chance on an unlicensed football game. 2k took a chance because they thought the fan base and the legends factor would be enough to carry the game. Natural motion took a chance because they had some cool new tech that might spark some interest in generate sales. Neither were really successful enough to justify sequels. Now if companies received profits from used game sales maybe these game might have generated some more money, but that didn't and isn't happening.

I only mention PC because there hasn't been a real PC football game in a long time, so people might gravitate toward it if it came out looking good, plus it's a lot easier to mod. I still don't see the PS4 or any other consoles being too mod friendly. Some companies make it easier to mod and embrace it, some don't.

This generation of gamers is just fine with Madden, and honestly it would have to take something truly unbelievable to even garner the attention of the public, and even then it would probably be a huge undertaking with something that isn't a guarantee. I just can't see companies risking it. I would love to have another option to play, but I don't see companies justifying the cost and effort it would take to take on the juggernaut known as Madden.

# 53 roadman @ 03/29/13 03:16 PM

Quote:

Originally Posted by Big FN Deal


	I can dig this Road but in most cases businesses don't determine what they think can be accomplished, just off what happened to other businesses. If a gaming company thinks they can turn a profit with a non-licensed football game, that's what they will try, regardless of other companies past efforts. Maybe they try to glean something from the past actions of other companies but for the most part, business is about trying to do something better or offering something different than others. So with the new consoles that premise could be motivation for even more companies to attempt non-licensed football games, if necessary due to a NFL exclusive, than this gen.

I can understand how and why you feel that way, and I don't know about non-profit business, but profit orientated businesses do a lot of market research before they set sail off to the promised land. You can't just ignore past companies experiences in the same field, it's there in black and white.

Companies can't just think they will turn a profit, they must know without a showdow of a doubt they will be profitable or else why jump in?

I must see it before I believe it.

My business sense tells me it would be difficult to pull off, maybe not impossible, but difficult.

# 54 howboutdat @ 03/29/13 03:18 PM

this news flat out SUCKS! if ea listens to the players that much , then why are so many unhappy with it? but honestly its ok , cause the NFL is turning the NFL into flag , dont hit no one , just hug them to the ground ball anyways . so in a few years we wont want to be playing an nfl video game anyways. all these new rules they keep making , makes the nfl suckier , not healthier. so . with that , i say , go for it ea..... ride this failue right on out on ur own! so im saying the NFL and EA are made for each other...... enjoy

# 55 tbook24 @ 03/29/13 04:59 PM

ok so you wanna licensethe game thats cool.but then dont license it to a certain system afterward. the gameplayed better prior to tis exclusive 360 deal. we need both systems all hands on deck if this is going to be the only nfl game

# 56 roadman @ 03/29/13 06:51 PM

I think people here are aware of EA's financial situation and this means EA could renogiate a deal that is much lower than what they paid before as CrimsonTide alluded to previously in here.

We'll all find out soon enough.

# 57 roadman @ 03/29/13 08:57 PM

Quote:

Originally Posted by balcobomber25


	Why in the world would the NFL, a multi-billion dollar organization who has shown its ruthless when it comes to business decisions, agree to a lower deal than what was paid in 2004?? If anything they would be looking for a bigger deal. The NFL does not care about EA's financial troubles, they care about the NFL's bottom dollar, if EA doesnt agree to their terms its on to the next highest bidder. Don't assume just because Take Two and EA are the only main sports game publishers that they would be the only bidders either. Activision Bizzard, Ubisoft, and Square Enix have just as much capital as those two and have all been known to bid on high profile franchises, not to mention the big 3 (Sony, Microsoft and Nintendo). How much do you think Msoft would pay to make NFL games exclusive to the Xbox?

The NFL lowered the last liscense agreement, didn't they?

So, you don't think negotiations ever take place? NFL offers one price, EA counters with another? I'd say that is pure speculation that the NFL doesn't care about EA's financial troubles. They currently are business partners. They have established a relationship. Businesses extend discounts a lot in the business world to their business partners. It's not all black and white, I'm sure there are other considerations to factor into the equation.

John Madden is also an advisor to the NFL. As I stated earlier, if people feel that Goodell and company will kick John Madden to the curb, not positive that would happen.

We'll see in the coming year.

Bottom line, I hope it doesn't come down to one bidder, I hope it's an open liscense and bring in more competition, but the NFL chooses exclusive business models

# 58 JaymeeAwesome @ 03/29/13 10:38 PM

At this stage in the game a non exclusive will hurt football gaming for a few years before it gets better. Madden 13 showed EAs willingness to finally listen to its gamers with the new physics engine. Lets not lose this momentum. I hope for another long term exclusivity deal. I'm loving the direction we are going.

# 59 Stafford2Johnson @ 03/30/13 12:07 AM

Quote:

Originally Posted by jaymee13


	At this stage in the game a non exclusive will hurt football gaming for a few years before it gets better. Madden 13 showed EAs willingness to finally listen to its gamers with the new physics engine. Lets not lose this momentum. I hope for another long term exclusivity deal. I'm loving the direction we are going.

one too many tonight sir

# 60 Number999 @ 03/30/13 01:15 AM

Sigh, not the happiest to hear that a change is unlikely but can't say I'm all that shocked. The shame is nothing realistically can be done, sure boycotting the game may diminish the sale records a bit but since EA mainly focuses on ****** gamers it won't matter. After the SimCity disaster, I just hope NFL eventually come to their senses and make it an open license, yep it's unlikely and it probably won't ever happen but what's wrong with hoping.

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