Madden 12 News Post

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

07:10 PM - February 14, 2011 by RaychelSnr

The Sports Business Journal is reporting that the NFL and EA have come to terms on extending the current exclusive deal one more year with the uncertainty surrounding the 2011 NFL Season.

Quote:


	"The NFL has restructured its lucrative licensing and sponsorship contract with Electronic Arts to account for the sport�s uncertain future, significantly reducing the video game maker�s contractual obligations next season but adding a year to the deal, according to several well-placed sources. The contract now runs through 2013. The league is believed to have so far rebuffed pleas for fee reductions from other licensees and sponsors, many of which, like EA, find it difficult planning for the next season under the threat of a work stoppage. The league�s collective-bargaining agreement with the players expires March 4, and the two sides are far apart on reaching a deal. EA, however, is a special case, with its iconic �Madden� video game title. The licensing deal it agreed to with the league in early 2008 is believed to be worth well into nine figures in guarantees and royalties over its original five-year term. That stands as one of the most, if not the most lucrative non-TV contract the NFL enjoys. The NFL Players Association, which signed a companion EA deal for rights to the players, reaps regularly between $30 million and $40 million annually, according to the union�s annual filings with the Labor Department. The league deal allows EA to use team colors, names and logos."

This basically means that EA has exclusive rights to Madden now until after Madden NFL 14 -- or roughly right about the time the next generation of consoles are set to hit.

This just shows how strong of business partners the NFL and EA Sports are at this point. The NFL is giving EA a break on payments this year and has basically given them an additional year as a make-up of sorts to make right. Also, if you read my 2011 Predictions Post back in January, you saw this was my first prediction, that the deal would be extended in some way this year.

So in that respect, this news is not unexpected -- and with the deal stretching into the next console generation, I have serious doubts any other company is going to be in a position enter the market anytime soon due to the extreme cost of entry into quality sports game development that will be present at that time.

Thanks to Pasta Padre for the news tip.

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Member Comments

# 401 JaymeeAwesome @ 02/19/11 02:14 PM

You do realize that madden doesn't have to put a good game at this point. The name madden is the only name associated with football gaming, they can put out a remake of techmo bowl for madden 12 and still make a profit. Posting in forums is not going to make a difference, do it with your wallet. That is the only language that businesses know, money. I for one will always buy madden because as long as there are real NFL names attached to a game, I'm gonna buy it.

# 402 mestevo @ 02/19/11 02:51 PM

Quote:

Originally Posted by jaymee13


	You do realize that madden doesn't have to put a good game at this point. The name madden is the only name associated with football gaming, they can put out a remake of techmo bowl for madden 12 and still make a profit. Posting in forums is not going to make a difference, do it with your wallet. That is the only language that businesses know, money. I for one will always buy madden because as long as there are real NFL names attached to a game, I'm gonna buy it.

I give people more credit than that, if I loaded up the Madden 12 demo and it looked like Madden Arcade, I am not buying it. I put a lot of time into these games, not just stare at the cover or the title screen at the name.

Madden is good for marketing, but the name has had little to do with the game for years.

# 403 Skyboxer @ 02/19/11 08:24 PM

Big freaking deal. This gen has been the gen without a great nfl football game anyways. We can hope next gen is better. Ill just go with a sim game. Ill try each madden but it will be rental or used though.

# 404 dickey1331 @ 02/20/11 09:54 AM

Quote:

Originally Posted by Boilerbuzz


	Where did you get that from? Do you realize that this started with EA asking for "relief" of the payouts due to the possible lockout. What's not being told is that the request for relief is NOT just related to the lockout. EA is NOT making the money you're implying. But, whatever.

EA may not be making money from this but it�s not "hurting" them. I was reading an article on CNBC and EA has no debt. I found that interesting as this seems to prove that EA makes smart decisions for a big company to have no debt. I think this also shows that EA has the money to extend the license as well.

# 405 kjcheezhead @ 02/20/11 03:27 PM

Quote:

Originally Posted by mestevo


	I give people more credit than that, if I loaded up the Madden 12 demo and it looked like Madden Arcade, I am not buying it. I put a lot of time into these games, not just stare at the cover or the title screen at the name. Madden is good for marketing, but the name has had little to do with the game for years.

You give people too much credit. The millions made on Snuggies, Furbies and Pet rocks tell me people will buy anything if it is marketed well.

Current gen Madden 06-09 are regarded as terrible games, even by most die hard Madden fans. How is it that Madden 10 and 11, (which are much improved products) didn't sell astronomically more units? The answer, imo, is that the NFL and its players has been the driving force behind the sales the whole time and the actual game quality is a distant second to that.

# 406 mestevo @ 02/20/11 05:48 PM

Quote:

Originally Posted by kjcheezhead


	You give people too much credit. The millions made on Snuggies, Furbies and Pet rocks tell me people will buy anything if it is marketed well. Current gen Madden 06-09 are regarded as terrible games, even by most die hard Madden fans. How is it that Madden 10 and 11, (which are much improved products) didn't sell astronomically more units? The answer, imo, is that the NFL and its players has been the driving force behind the sales the whole time and the actual game quality is a distant second to that.

And just like Snuggies, Pet Rocks, and Furbies, there's a market and a target audience. America is overweight, if we take a bite of something we don't like, most aren't going to finish eating it.

As for the sales numbers posts (back to this topic again in record time), I defer to my previous posts just a page or two back that were ignored.

# 407 kjcheezhead @ 02/20/11 07:13 PM

Quote:

Originally Posted by mestevo


	And just like Snuggies, Pet Rocks, and Furbies, there's a market and a target audience. America is overweight, if we take a bite of something we don't like, most aren't going to finish eating it. As for the sales numbers posts (back to this topic again in record time), I defer to my previous posts just a page or two back that were ignored.

I am referencing your numbers from a few pages back. They support what I'm saying. Sales are basically flat on HD consoles, yet the quality of Madden 11 is much higher than Madden 09.

# 408 mestevo @ 02/20/11 07:35 PM

Quote:

Originally Posted by kjcheezhead


	I am referencing your numbers from a few pages back. They support what I'm saying. Sales are basically flat on HD consoles, yet the quality of Madden 11 is much higher than Madden 09.

That's actually a good point, looking at it again, the HD consoles combined have surpassed the numbers of the highly regarded PS2 versions, with far fewer consoles on the market. Sales leading up to 10/11 were caught up in the gradual death of the PS2 which was still selling over 1m copies until this year with the huge drop from 948k to 391k (so far).

PS2 topped out at 4.36m with Madden 05. Madden 10 on PS3/360 sold 5.44m copies in the last 70+ weeks, and 11 is sitting at 4.2m at 27 weeks.

Makes the move towards Facebook and microtransactions look a lot smarter if they think they're reaching market saturation. Get potentially more $$ per box, online pass and more DLC generates revenue from used sales that they got almost nothing from before.

# 409 bkrich83 @ 02/21/11 02:56 AM

Quote:

Originally Posted by kjcheezhead


	I am referencing your numbers from a few pages back. They support what I'm saying. Sales are basically flat on HD consoles, yet the quality of Madden 11 is much higher than Madden 09.

Valid point, although the continued downturn in the economy may have been a factor as well.

# 410 rooney8 @ 02/23/11 08:31 AM

Just saw this news. Very disappointed but kind of expected. It shows how eager the NFL are to keep this exclusive license. You don't do this for a company unless you see a long future working together. Expect when the CBA is sorted another long term deal to be agreed between the NFL and EA.

# 411 Only1LT @ 02/23/11 01:32 PM

Quote:

Originally Posted by mestevo


	That's actually a good point, looking at it again, the HD consoles combined have surpassed the numbers of the highly regarded PS2 versions, with far fewer consoles on the market. Sales leading up to 10/11 were caught up in the gradual death of the PS2 which was still selling over 1m copies until this year with the huge drop from 948k to 391k (so far). PS2 topped out at 4.36m with Madden 05. Madden 10 on PS3/360 sold 5.44m copies in the last 70+ weeks, and 11 is sitting at 4.2m at 27 weeks. Makes the move towards Facebook and microtransactions look a lot smarter if they think they're reaching market saturation. Get potentially more $$ per box, online pass and more DLC generates revenue from used sales that they got almost nothing from before.

Is there any particular reason why you are only comparing PS3 and 360 numbers to just the Madden 05 PS2 numbers, instead of PS3/360 numbers to Madden 05 PS2/XBOX numbers?

# 412 KBLover @ 02/27/11 11:29 PM

Quote:

Originally Posted by mr_president


	i will contend that running the ball in madden can be fun, but for me it does not offer the best experience. the suction,teleporting and line interaction seems to always find a way ruin it for me.

Tell me about it.

I didn't get M11, but in M10 most of my time trying to figure out sliders was to get the run game to play out realistically without all of this and make player abilities stand out.

I gave up.

# 413 delspf @ 02/28/11 01:06 PM

Pretty much gave up on EA sports in general. Can't remember the last madden I bought, can't see me buying it before 2014 either

# 414 happymadison @ 02/28/11 03:36 PM

I'm not pro Ea or Pro 2k, but i'd like some variety in my choice of football game's, i buy madden every year and not because i think madden is the best but because i LOVE football and there isn't any other to choose from....if madden 12 doesn't step it up from 11 then i may pass on it, i will definitely "wait"and see so that mean's no release day purchase for the first time in 10 yr's

# 415 Hooe @ 02/28/11 06:57 PM

Quote:

Originally Posted by SECElite3


	As much as much as I would like to hold EA Sports responsible, I don't. I blame the NFL. From a business standpoint, EA did the smart thing by getting the exclusive rights to the NFL license. They had to protect themselves because developing games is very expensive. Don't you guys remember that 2K sold their game at 19.99 that year, and in doing so, undercut not only EA, but 95% of the other developers in business. 2K made a bad business decision that could have started a downward spiral, which could have resulted in a lower quality games for us or the end of the video game industry all together. Does this mean that the lack of competition is a good thing? Absolutely not! but, we should hold the NFL accountable. As a child, I loved the NFL. I looked forward to the releases of Madden as much as anyone else. There was a certain magic about the NFL. Sadly, I no longer feel that way. I don't buy Madden because of the NFL, I don't watch the games because of the NFL (See the last play of the Pro-Bowl, sickening) The exclusive agreement with EA is just the icing on the cake. Football was never intended to be commercialized the way it is today. The old school NFL would have never considered entering into any exclusive agreement such as the one with EA, because it hurts the fans and is wrong. Do you blame the underage teen who asks for the alcohol or do you blame the adult who gives it to him? The NFL, by entering into this agreement is simply stating that is does not care about the fans. They have never questioned the fans to find out what they wanted? Do they care? Of course not! The people in those offices only care about what benefits them. "It's all about the money honey" Sad Some other notables: Cancellation of the Philadelphia game due to a snow storm? (Really) How about players complaining about field being too hard for the game that was moved to Minnesota's college stadium?

So your best example of the commercialization of the NFL's on-the-field product is the final play of a game that not only didn't count, but one that has a pretty storied reputation over the past decade of being a joke? I challenge you to find a similar play in ANY of the 267 games played this year that counted.

Also, the so-called "old-school NFL" has been partaking in exclusivity deals as long as I have been watching it, be it with jerseys, hats, video games, or what have you. This isn't something new or unexpected.

As far as questioning the fans as to what they wanted, I'd guess if you went to any average NFL fan who played football video games at the time of the exclusive license negotiation, he'd be much more comfortable with the NFL entering an exclusivity deal with EA Sports for the continuation of the ever-popular Madden franchise over any other alternative.

Two other notes: (1) the Philadelphia - Minnesota game wasn't cancelled, it was postponed, and (2) given the NFL's emphasis on prevention of head injuries this past season, the outcry over playing a late December game on a field not designed with this use in mind and in a stadium that had already been winterized (i.e. the Vikings game at the University of Minnesota's stadium) could be seen as a pretty big deal.

# 416 meep316 @ 02/28/11 08:57 PM

Another year of this garbage?

# 417 kjcheezhead @ 03/07/11 11:05 AM

Quote:

Originally Posted by CHooe


	So your best example of the commercialization of the NFL's on-the-field product is the final play of a game that not only didn't count, but one that has a pretty storied reputation over the past decade of being a joke? I challenge you to find a similar play in ANY of the 267 games played this year that counted.

How about the debacle at the Superbowl not having enough seats inside the stadium and charging $200 to show the game outside the stadium when other events like Wimbeldon do it for free? How about trying to push an additional 2 games through when the fans are against it and they are supposedly concerned about increases in player injuries? Commercialization and greed at its finest.

Quote:

Originally Posted by CHooe


	Also, the so-called "old-school NFL" has been partaking in exclusivity deals as long as I have been watching it, be it with jerseys, hats, video games, or what have you. This isn't something new or unexpected.

The exclusive agreements started in the early 2000s I believe. American Needle launched its lawsuit in 2004 shortly after Reebok got one of the first exclusives I remember. Hardly a long standing tradition of the NFL.

Quote:

Originally Posted by CHooe


	As far as questioning the fans as to what they wanted, I'd guess if you went to any average NFL fan who played football video games at the time of the exclusive license negotiation, he'd be much more comfortable with the NFL entering an exclusivity deal with EA Sports for the continuation of the ever-popular Madden franchise over any other alternative.

1 out of 5 NFL fans purchased NFL2k5 when there was a choice. Since 20% of their audience enjoyed that game, why would the NFL go exclusive at all? Because they don't care about fans any more than they do player safety. Money is all that matters.

# 418 Hova57 @ 03/07/11 11:39 AM

Quote:

Originally Posted by MJenness


	Let's get real here. EA bought the license for 1 reason and 1 reason only. 2K put our NFL 2k5, and it showed more promise and potential than Madden ever has. EA decided to take the easy route and simply eliminate the competition. I have stopped buying Madden, and will continue to do so. Guys, it's really not so hard to do! But EA also knows with the exclusive license that they could package a petrified turd, and it'd still seel by the boatloads, just because it is a) Madden and b) the only game in town. Madden will NEVER be what it "could be" with Tiburon at the helm, and an exclusive license. Accept that, suck it up, and stop buying their rhetoric every damn year.

MJ completely disagree. Purely from a business perspective it was a good move on both parts . After watching the wars go on and one company sold games at 19.99 and the other 49.99 . they watched what came in who gave them the most . Said hey we gonna put this up for exclusive EA was all over it. 2k couldn't afford to its that simple. It was a business decision not a video game decision. What Ea did with it afterwards is there fault, but hey the NFL gets their guarantee regardless of how well it does or doesn't.

# 419 mestevo @ 03/07/11 12:10 PM

Quote:

Originally Posted by kjcheezhead


	1 out of 5 NFL fans purchased NFL2k5 when there was a choice. Since 20% of their audience enjoyed that game, why would the NFL go exclusive at all? Because they don't care about fans any more than they do player safety. Money is all that matters.

I am pretty sure you meant Madden only outsold NFL2k5 5:1 (not 1 out of 5 NFL fans purchased...), and with your logic (in bold) everyone who buys Madden enjoyed the game? Or did I miss some poll that showed every Madden buyer who also bought NFL2k5 was happy with the purchase?

Many teams are just as much at fault in the player safety category too btw, calling things neck injuries to get around concussion rules. That will stop this year hopefully, if you get a concussion you're done and have to leave the field.

# 420 kjcheezhead @ 03/07/11 12:48 PM

Quote:

Originally Posted by mestevo


	I am pretty sure you meant Madden only outsold NFL2k5 5:1 (not 1 out of 5 NFL fans purchased...), and with your logic (in bold) everyone who buys Madden enjoyed the game? Or did I miss some poll that showed every Madden buyer who also bought NFL2k5 was happy with the purchase? Many teams are just as much at fault in the player safety category too btw, calling things neck injuries to get around concussion rules. That will stop this year hopefully, if you get a concussion you're done and have to leave the field.

The 2k series did well prior to 2k5. Obviously it had a loyal fan base and being on internet forums would tell you that fan base is still there.

Even if half of 2k5 owners weren't happy with their purchase that would still mean 1 out of 10 football fans enjoyed the game. That's a significant number of fans the NFL chose to ignore when they went exclusive.

Notice no other major sports league has done this to their fanbase. The NBA and NHL have currently only one option because of poor sales, not because of a greedy group of owners ala the NFL.

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