Electronic Arts, ESPN hook up in exclusive 15-year deal

[MizzouRah]

http://www.gamespot.com/news/2005/01...s_6116473.html

ESPN brand and programming to surface in EA sports titles on all platforms; deal is second blow to Sega Sports and Visual Concepts.
Electronic Arts broke the calm of a national holiday today by announcing a licensing deal of epic proportions. For the next fifteen years, EA will be the sole licensee of the ESPN brand in the area of sports games, which will include console, handheld, PC, and wireless games.


Games with leverage the ESPN brand will make their way to retail sometime during calendar year 2006, "upon the conclusion of ESPN’s existing video game licensing commitments."

The news is the second blow to current license-holder Sega (and its Visual Concepts development studio). It recently lost the right to publish sports games using the NFL license when EA scooped that license up. Now, it loses the right to the ESPN brand as well.

In a statement released just minutes ago, the world's largest game publisher said, "The relationship will include established EA SPORTS franchises--which will be enhanced by ESPN telecast, print and online content--as well as new sports games to be published by EA based on ESPN media properties."

The agreement is for fifteen years "with an option to terminate after ten years under certain conditions," the statement said. The agreement gives the publisher "exclusive first rights" to all ESPN content for simulation sports games.


By Curt Feldman -- GameSpot
POSTED: 01/17/05 12:05 PM PST


[i]Son of a ..... ??? Damn EA!

[Crapshoot]

Goddamnit- well, that's that. expect Madden to get a name change soon. Fvck!

[GrantDawg]

Wow! Who needs a competetive market place. Viva-la Monopoly!

[Chief Rum]

Can you say "antitrust suit"? The exclusive NFL contract was already pushing the envelope. I wouldn't be surprised if this pushed it over the edge.

CR

[Farrah Whitworth-Rahn]

Wonder how long before the Justice Department starts looking in to EA's activities.

[Arles]

Have to admit, I didn't anticipate that. Still, given EA already had the NFLPA, they certainly had the cash to bring in ESPN as well. Sega will have to focus more on customization I would guess, although they are certainly losing more and more marketing tools for sales. It's a bit of a bummer as I was more impressed with Sega than EA this past season - which is probably the reason for this move.

[Crapshoot]

Sega will quit- I would be shocked if they released anything.

[Calis]

Damn, that's gotta sting.

Doesn't really bother me though, I don't think the ESPN license brought a lot to the tables.

15 years though? Sheesh.

Don't think it'll hurt the other sports much, still anxious to see what the football game ends up like, very excited.

[Yossarian]

Sega Presents: Japanese Pro Football....

[Franklinnoble]

No reason why Madden has to change. ESPN/ABC/MNF are all under the same umbrella.

[Yossarian]

Madden's getting old...

Thats a lot of turducken for a guy his age to eat.....

[Crapshoot]

Originally Posted by Franklinnoble

No reason why Madden has to change. ESPN/ABC/MNF are all under the same umbrella.

No, I mean the Madden name- its getting Expensive, and EA can now sell it as ESPN football - which has an even great product cache.

[Kodos]

Good god. EA really IS buying the world.

[Yossarian]

plus given that it now OWNS the market it could call the game "Football" and sell millions

[SirFozzie]

The other thing is.. this KILLIFYS the ESPN licenses for all the OTHER VC games (College and Pro Hoops, Baseball, and Hockey (although there likely wouldn't be another one this year anyway)..

EA is doing a complete hatchet job on Visual Concepts.

[Franklinnoble]

I think Sega needs to buy the Tecmo name, and then create an updated version of Tecmo Bowl with vintage USFL rosters.

Seriously, who wouldn't buy that?

[albionmoonlight]

Originally Posted by Franklinnoble

I think Sega needs to buy the Tecmo name, and then create an updated version of Tecmo Bowl with vintage USFL rosters.

Seriously, who wouldn't buy that?

Young people. They have no taste.


I thought that EA vs. ESPN was a fair fight. Now it is just a walkover.

I think that EA should also get the exclusive rights to Dan Stevens and Peter O'Keefe, just to rub salt in the wound.

[GrantDawg]

I wonder at what point EA over-extends and goes broke? Probably a lot more than what they have spent so far, but you can wish.

[Maple Leafs]

Originally Posted by Crapshoot

No, I mean the Madden name- its getting Expensive, and EA can now sell it as ESPN football - which has an even great product cache.

No way. They might leverage the ESPN deal to get a better contract from Madden, but they keep the name.

Put it this way... if they dumped Madden, how long before Sega swoops in, signs the deal and releases Madden 2006?

[Franklinnoble]

Originally Posted by GrantDawg

I wonder at what point EA over-extends and goes broke? Probably a lot more than what they have spent so far, but you can wish.

Not going to happen.

EA has bigger annual revenue than you'd think.

[Crapshoot]

Originally Posted by Maple Leafs

No way. They might leverage the ESPN deal to get a better contract from Madden, but they keep the name.

Put it this way... if they dumped Madden, how long before Sega swoops in, signs the deal and releases Madden 2006?

Without NFL Players ? Would anyone buy it ?

[jetpunk2000]

Originally Posted by Maple Leafs

No way. They might leverage the ESPN deal to get a better contract from Madden, but they keep the name.

Put it this way... if they dumped Madden, how long before Sega swoops in, signs the deal and releases Madden 2006?

That's kinda a tough call, I think. On one hand, everyone knows EA and Madden go hand in hand. That being said, I don't think it hurts to have a fresh start. I mean ESPN is gonna be around much longer than Madden will. Plus it's not like ESPN isn't well known. The only problem may be from people who weren't into the Sega games. If you call it ESPN, you have to make sure you differentiate from that. But what about EA presents Monday Night Football. Something different.

[MizzouRah]

..and they say Bill Gates is bad...

This is really bad news, I guess console gaming is going to die.


Todd

[jetpunk2000]

Originally Posted by MizzouRah

..and they say Bill Gates is bad...

This is really bad news, I guess console gaming is going to die.


Todd

I don't think this one is as bad as the exclusive NFL license. That's the one that's going to be a killer.

[Maple Leafs]

Originally Posted by Crapshoot

Without NFL Players ? Would anyone buy it ?

Put out a game called Madden 2006 and I bet it makes millions, even if it's an empty box.

[jetpunk2000]

Originally Posted by Maple Leafs

Put out a game called Madden 2006 and I bet it makes millions, even if it's an empty box.

You might get them once....mostly the people who haven't a clue about what has happened. But if it's garbage, or doesn't have teh player/team licenses, it probably won't last.

[Deattribution]

I wonder if any, or how much of this happens if VC doesn't cut prices to $19.99 on all there sports titles... They fired the first shot, problem is they under estimated who they were going against.

[Ironhead]

I just started playing Madden 2005 after refusing to play it this football season. I had a very sour taste in my mouth following NCAA Football on the Xbox and the NFL licensing deal. After having a moderately fun 34-30 win in the closing seconds of ATL-PHI I log onto the forums to find this news.

I feel like such a dirty you know what right now.

[SackAttack]

It's worth noting that Sega still has two more years with ESPN before this happens. That could allow them to keep the ESPN brand for those two years, but re-position their sports titles for life after ESPN in the meantime. Reduce their reliance on the ESPN gimmicks, or at least plant the seeds, feature-wise, of what's going to come after.

This is a blow for Sega, but it's not anywhere near the knockout blow that the exclusive NFL license was, because the NFL deal takes place immediately, but the ESPN deal has a built-in 2 year cushion. Sega gets to finish their contract, and EA takes over immediately thereafter.

[jbmagic]

just hope EA wakes up and makes Madden 2006 have online league like it did for Madden 2002

[Cringer]

Originally Posted by MizzouRah

In a statement released just minutes ago, the world's largest game publisher said, "The relationship will include established EA SPORTS franchises--which will be enhanced by ESPN telecast, print and online content--as well as new sports games to be published by EA based on ESPN media properties ."

ESPN Spelling Bee on PS2 and XBox coming in 2006!!!

[Ragone]

Espn Roller Derby!
Espn Lawn Mower Racing!
Espn Pool!
Espn World Series of Poker!

[Sharpieman]

Now EA has the incentive to make their game HORRIBLE and people will still buy it.

[SirFozzie]

That last one is entirely too possible, and hereby is stricken from the post above. Instead, we will provide new entries!

ESPN Dream Job!
ESPN Stump the Schwab
ESPN Throw Stuart Scott under the steamroller!


Errr.. did I say that last one aloud?

[SackAttack]

Foz, I tend to read that as meaning games based on things like Tilt and Playmakers, although the latter is out courtesy of Midway.

[Ragone]

ooh

Espn Butcher highlights with ghetto slang you don't understand!

Espn Nhl Lockout 2005!(now with exciting 1st person backroom negotitation)

Espn Nhl Not tonight!(why not 2 titles in one year, this one lets you watch dog shows and spelling bees that play in place of nhl games)

Espn Major Indoor Lacrosse 2005

[Joe]

this is great news!

[Cringer]

Originally Posted by SirFozzie

That last one is entirely too possible, and hereby is stricken from the post above. Instead, we will provide new entries!

ESPN Dream Job!
ESPN Stump the Schwab
ESPN Throw Stuart Scott under the steamroller!


Errr.. did I say that last one aloud?

ESPN Throw Stuart Scott under the steamroller! would be entirely too enjoyable, and hereby should be stricken from the post above.

[Yossarian]

what is Tilt?

[sooner333]

Sega really needs to now focus on their NBA game. First of all, NFL wasn't going to go anywhere. Yes, it is a great game...I own more of their titles than Madden titles for Xbox. The problem is, I wasn't representative of the public, and even when I try to promote the ESPN football game to my friends, they just shrug it off and buy Madden anyway. Their NBA game, on the other hand, is very good as well, but NBA Live doesn't quite have the market cornered already like Madden does. Also, they can still have the NBA licesnse with real players.

So, you get the TNT rights, and maybe make the game called whatever TNT calls their national broadcast night. You have the longest running TV partner of the NBA, not bad and a very recognizable name.

Sega then needs to do something with its college basketball game. This could be a big seller. Perhaps get the CBS marketing. Everyone knows the theme song, everyone loves the NCAA tournament. The CBS deal could be the best one out there of any sports title because of the huge correlation between the sport and that network (for the tournament).

Sega can also really make its baseball game pretty decent. MVP doesn't really have a huge market. However, they really need to change something otherwise I think this baseball title may go the way of High Heat.

I probably wouldn't spend much time developing a college football game, because of NCAA...but, if you really have to scrap NFL, you might as well try to convert the game to college in a sport where you might have a chance. CBS could sign on with the other college title. They would really need to make things different from EA, but they could do the things like they do in college hoops, like the dynasty mode where you start from a low level of schools. Also, maybe include some kind of high school gimmick or lower level schools.

In the end, Sega might really want to focus on the next-generation of consoles and make a really wowing impression when they come out. That would create a lot of hype and maybe propel them into better competition with EA.

[SackAttack]

Tilt is to poker as Playmakers was to football, I believe.

[Chief Rum]

ESPN Strongman!

I want to be Guntharr Sigurdmanssonshmekolicwhatever....

CR

[SackAttack]

Attempt to Monopolize . Section 2 of the Sherman Act also prohibits attempts to monopolize by companies that do not possess monopoly power but engage in anticompetitive conduct designed to achieve it. To prove an attempt to monopolize, one must establish that the defendant had a specific intent to achieve monopoly; that it acted in an anticompetitive manner designed to injure its actual or potential competition; and that there was a dangerous probability that monopoly power would in fact be achieved. Since companies that actually possess monopoly power are an industrial rarity, most Section 2 litigation involves allegations of attempts to monopolize; and it is the "dangerous probability of success" element on which the resolution of most cases turns.

Somebody sent this to me via AIM. I wonder how much relevance that will ultimately have for Sega.

[JonInMiddleGA]

I can't see where monopoly comes into play at all here, the football niche or even the sports game niche is too narrow a definition to apply.

It's like claiming CBS has a monopoly on "daytime game shows where you attempt to guess the retail price of items".

[GrantDawg]

Originally Posted by SackAttack

Somebody sent this to me via AIM. I wonder how much relevance that will ultimately have for Sega.

What I wonder is would "Football video Games" be to narrow a section of competetion to be considered a legal monopoly. Couldn't EA just agrue that SEGA has room in other sports game to compete against EA's football game? (Did that make any sense?).

[Crapshoot]

Well, I believe the anti-trust exemption (as seen with the TV rights negotiation and so forth) that the NFL has (MLB started it) is applicable here- they have chosen to band together, and have been permitted to do so by Congress. No chance here.

[SackAttack]

Originally Posted by Crapshoot

Well, I believe the anti-trust exemption (as seen with the TV rights negotiation and so forth) that the NFL has (MLB started it) is applicable here- they have chosen to band together, and have been permitted to do so by Congress. No chance here.

The thing is, I don't think Sega would be filing suit against the NFL for antitrust violation. If they filed suit, it would be against EA for anticompetitive behavior.

Does anybody really argue against the premise that EA "it acted in an anticompetitive manner designed to injure its actual or potential competition"?

Given the success of the Madden brand, how about "a dangerous probability that monopoly power would in fact be achieved"?

[Ragone]

Originally Posted by Chief Rum

ESPN Strongman!

I want to be Guntharr Sigurdmanssonshmekolicwhatever....

CR

ooh.. i want magnus ver magnusson

[Chief Rum]

NFL may have blown their antitrust exemption by playing a game on Saturday early this season anyway.

But, no, Sega wouldn't be filing against the NFL, but EA.

And, Jon, I think a billion dollar industry, like the video football game industry, is big enough to be the focus of monopolistic legal requirements.

CR

[GrantDawg]

Originally Posted by JonInMiddleGA

I can't see where monopoly comes into play at all here, the football niche or even the sports game niche is too narrow a definition to apply.

It's like claiming CBS has a monopoly on "daytime game shows where you attempt to guess the retail price of items".

That's funny. You answered what I asked about the time I asked it. Yeah, even though it seems big to us, I think they'd have to lock up the total video game market, or even the total sports video game market, not just the Pro football game subset of a subset of a subset.