EA/NFL Extend NFL Exclusive License by One Year to 2013

[bkrich83]

Quote: Originally Posted by EddieV

Actually, if you call surviving EA's motion to dismiss, and defeating EA's attempt to prevent a class from being certified, a success -- then I'd say it does have traction. Our courts are just slow moving...give it a bit more time and it will be in the news again.

That really means little. Is their precedent for this?

I get the desire for people to want this to happen. But believing in these lawsuits amounts to little more than wishful thinking.

[EddieV]

Quote: Originally Posted by ryan36

No you're wrong the 1 year extension has to do with a potential lockout and a lackluster year for sales.

I understand that's the perception. Why do you think EA has refused to comment or answer any questions about the extension? And, if the deal is working out so great for both sides, why didn't they re-up it for 3 or 4 years like last time? It's just my guess, but I think the uncertainties of all the pending litigation had at least something to do with it. Again, we should have some more answers on that stuff in another year.

[coogrfan]

Quote: Originally Posted by CaptainZombie

Plus I think when 2K sold NFL2K5 for $19.99 out of the gate, didn't that really piss off the NFL? I could be wrong, but I thought they did get upset since it came off as their brand was being cheapened at $20.

That, and the fact that it cut into the amount the league earned in licensing fees:

Quote: Originally Posted by DrJones

In the "olden days", the 3 companies paid the NFL/PA a royalty per unit sold, at roughly 10%. Let's say the total football market is about 6 million units. 6 million x $60 x 10% = $36M annually to the NFL. The current EA deal with the NFL pays them between $60M-$70M per year, regardless of units sold.

The old deals were based on sales figures, the current deal is a flat fee up front.

[EddieV]

Quote: Originally Posted by bkrich83

The one year deal was basically a compromise in the face of a potential NFL work stoppage.

Maybe you're right, maybe I'm right -- guess we'll never know.

[ryan36]

Quote: Originally Posted by EddieV

I understand that's the perception. Why do you think EA has refused to comment or answer any questions about the extension? And, if the deal is working out so great for both sides, why didn't they re-up it for 3 or 4 years like last time? It's just my guess, but I think the uncertainties of all the pending litigation had at least something to do with it. Again, we should have some more answers on that stuff in another year.

Nah, I think the uncertainty is whether or not EA wants to re-up. A competitor would have to wait a year or two to produce a playable game. EA probably thinks they can get the license for cheaper or that they can squeak buy a couple years without it and save 140 million dollars.

[coogrfan]

Quote: Originally Posted by EddieV

I understand that's the perception. Why do you think EA has refused to comment or answer any questions about the extension? And, if the deal is working out so great for both sides, why didn't they re-up it for 3 or 4 years like last time? It's just my guess, but I think the uncertainties of all the pending litigation had at least something to do with it. Again, we should have some more answers on that stuff in another year.

Umm... the CBA situation might have something to do with it as well, don't cha think?

[EddieV]

Quote: Originally Posted by ryan36

Nah, I think the uncertainty is whether or not EA wants to re-up. A competitor would have to wait a year or two to produce a playable game. EA probably thinks they can get the license for cheaper or that they can squeak buy a couple years without it and save 140 million dollars.

Remember, it's not just EA that decides. You've also got the NFL owners looking at potential legal outcomes and mounting legal expenses. If you don't think the legal uncertainties had anything to do with this most recent extension being only 1 year instead of 3 or 5, that's your opinion and you're entitled to have it. I just have a different opinion.

[bkrich83]

Quote: Originally Posted by EddieV

Maybe you're right, maybe I'm right -- guess we'll never know.

Given the way ea and the NFL operate. It seems pretty obvious.

You think a class action suit against ea will force the NFL to open up their license? Not likely and the NFL has even deeper pockets for litigation than ea does and no one protects their intellectual property like the NFL.

This litigation has no affect on the NFL or how they do business. And why do people think telling an entity like the NFL who they can and can't sell their licenses to is a good thing ?