Madden-NFL Exclusivity Agreement Extended - Blu-ray Forum

caliblue15 · 02-15-2011, 07:53 PM

Madden will be the only NFL-licensed game series on the market for at least two more years, thanks to a new agreement between Electronic Arts and the NFL. This is the same exclusivity contract that killed the NFL 2K franchise and ensured Madden would face no real competition. It was originally set to expire next year, but will now run through 2013.

As anyone who has watched ESPN lately is aware, there's a very good chance we're headed towards a lockout in the NFL. The current collective bargaining agreement is set to expire in early March, and certain key issues (such as team owners' desire to extend the regular season to 18 games) may prevent a new deal from being reached before the 2011 season. That potentially means games, if not the entire season, could be lost. That will in turn have an effect on this year's Madden game from a variety of standpoints, not the least of which would be EA's inability to update rosters throughout the season based on the real-life happenings of the NFL.

The Wall Street Journal reported last October that EA was seeking a $30 million reduction from the payments it was set to pay due to the possibility of a lockout. Sports Business Journal Daily is now reporting that EA has been given an unspecified break from its obligations for next season, as well as a one-year extension to the contract, which had been set to expire in 2012.

"For one of our core partners in a difficult environment, we say let's look at this, and maybe it makes some sense to extend something out longer and give our partner some relief in the short term but gain something on the back end," said Jacksonville Jaguars owner Wayne Weaver, who is also chairman of the NFL's business ventures committee.

The report states that the NFL's deal with EA is the biggest non-TV contract the league currently has. The deal was extended back in 2008 and is said to be worth "well into" the nine-figure range. EA also pays the NFL Players Association between $30 and $40 million per year for the right to use players' likenesses.

Wedbush Morgan analyst Michael Pachter explained the reasoning for the reduction in obligations for this season. Without the assurance that the 2011 season will take place as scheduled, he said, "Why would EA do TV pre-buys [and] advertise the hell out of the Madden game, which presumably they have to commit to before the launch of the game, which is around Aug. 10? They have to put the game out in the market, and that is why they are getting relief."

Regardless of the CBA status, Madden will still be released this August as planned.

http://www.1up.com/news/madden-nfl-e...ement-extended

caliblue15 · 02-15-2011, 07:54 PM

Good news, it's only for an extra year.

Batman1980 · 02-15-2011, 07:55 PM

Hopefully there will be a lot of new NFL games that come out now that are worth playing.

Harpua · 02-15-2011, 08:28 PM

I'm having a hard time believing that 2k or another developer would even enter the fray based on those 'reduced' numbers above.

Quote:

The Wall Street Journal reported last October that EA was seeking a $30 million reduction from the payments it was set to pay due to the possibility of a lockout.

I have a feeling we're stuck with Madden until some deep pocket publisher is willing to take the risk on unseating Madden. Sounds like you'd need some significant sales figures to cover the licensing fees alone.

MaCruz · 02-15-2011, 08:31 PM

I know of one member who is furious about this news.

Frenchy17 · 02-15-2011, 08:34 PM

Quote:

Originally Posted by MaCruz

I know of one member who is furious about this news.

Did the name happen to just Don on you???

Trace17 · 02-15-2011, 08:45 PM

Sweet, another year I don't buy Madden. EA is saving me money one game at a time. Thanks EA!

Their monopoly on the game is absolutely stupid. The lack of competition in the market has absolutely crippled the progression and innovation of football (specifically NFL) games. If there was at least 2-4 studios with decent NFL-based games, there's no telling what sort of growth and creativity we might see. Shame we never will.

And honestly, how does this not violate some sort of monopolization law? I don't remember much from my economics classes about monopoly/antitrust...despite me having a minor in Economics lol. But with any other game there's not near as much monopolization and huge up-front costs that prevent anyone else from entering.

Whatever. I have plenty of other games to play anyway.

caliblue15 · 02-15-2011, 08:34 PM

Quote:

Originally Posted by Harpua

I'm having a hard time believing that 2k or another developer would even enter the fray based on those 'reduced' numbers above.

I have a feeling we're stuck with Madden until some deep pocket publisher is willing to take the risk on unseating Madden. Sounds like you'd need some significant sales figures to cover the licensing fees alone.

It was $300 Million in 2004...

Quote:

Originally Posted by macruz

i know of one member who is furious about this news.

02-15-2011, 07:53 PM	#1
caliblue15 Blu-ray Knight Member since:Dec 2007 Home Theater Gallery:12 Blu-ray collection:85 Blu-ray reviews:1 Trading Score:6	Madden-NFL Exclusivity Agreement Extended Madden will be the only NFL-licensed game series on the market for at least two more years, thanks to a new agreement between Electronic Arts and the NFL. This is the same exclusivity contract that killed the NFL 2K franchise and ensured Madden would face no real competition. It was originally set to expire next year, but will now run through 2013. As anyone who has watched ESPN lately is aware, there's a very good chance we're headed towards a lockout in the NFL. The current collective bargaining agreement is set to expire in early March, and certain key issues (such as team owners' desire to extend the regular season to 18 games) may prevent a new deal from being reached before the 2011 season. That potentially means games, if not the entire season, could be lost. That will in turn have an effect on this year's Madden game from a variety of standpoints, not the least of which would be EA's inability to update rosters throughout the season based on the real-life happenings of the NFL. The Wall Street Journal reported last October that EA was seeking a $30 million reduction from the payments it was set to pay due to the possibility of a lockout. Sports Business Journal Daily is now reporting that EA has been given an unspecified break from its obligations for next season, as well as a one-year extension to the contract, which had been set to expire in 2012. "For one of our core partners in a difficult environment, we say let's look at this, and maybe it makes some sense to extend something out longer and give our partner some relief in the short term but gain something on the back end," said Jacksonville Jaguars owner Wayne Weaver, who is also chairman of the NFL's business ventures committee. The report states that the NFL's deal with EA is the biggest non-TV contract the league currently has. The deal was extended back in 2008 and is said to be worth "well into" the nine-figure range. EA also pays the NFL Players Association between $30 and $40 million per year for the right to use players' likenesses. Wedbush Morgan analyst Michael Pachter explained the reasoning for the reduction in obligations for this season. Without the assurance that the 2011 season will take place as scheduled, he said, "Why would EA do TV pre-buys [and] advertise the hell out of the Madden game, which presumably they have to commit to before the launch of the game, which is around Aug. 10? They have to put the game out in the market, and that is why they are getting relief." Regardless of the CBA status, Madden will still be released this August as planned. http://www.1up.com/news/madden-nfl-e...ement-extended

02-15-2011, 07:54 PM	#2
caliblue15 Blu-ray Knight Member since:Dec 2007 Home Theater Gallery:12 Blu-ray collection:85 Blu-ray reviews:1 Trading Score:6	Good news, it's only for an extra year.

02-15-2011, 07:55 PM	#3
Batman1980 Blu-ray Jedi Member since:Feb 2009 Location:District 13 Home Theater Gallery:8 4K collection:146 Blu-ray collection:394 DVD collection:57 Blu-ray reviews:22 Trading Score:48	Hopefully there will be a lot of new NFL games that come out now that are worth playing.

02-15-2011, 08:31 PM	#5
MaCruz Community Gaming Moderator Top ranked HT gallery Top contributor Member since:Mar 2009 Location:Jacksonville, FL Home Theater Gallery:160 4K collection:104 Blu-ray collection:958 DVD collection:18 MA collection:394 Digital collection:570 iTunes collection:527 Prime collection:192 Blu-ray reviews: 23 Trading Score:139	I know of one member who is furious about this news.

02-15-2011, 08:45 PM	#7
Trace17 Blu-ray Ninja Top contributor Member since:Jul 2009 Location:Oklahoma 4K collection:285 Blu-ray collection:1342 Trading Score:136	Sweet, another year I don't buy Madden. EA is saving me money one game at a time. Thanks EA! Their monopoly on the game is absolutely stupid. The lack of competition in the market has absolutely crippled the progression and innovation of football (specifically NFL) games. If there was at least 2-4 studios with decent NFL-based games, there's no telling what sort of growth and creativity we might see. Shame we never will. And honestly, how does this not violate some sort of monopolization law? I don't remember much from my economics classes about monopoly/antitrust...despite me having a minor in Economics lol. But with any other game there's not near as much monopolization and huge up-front costs that prevent anyone else from entering. Whatever. I have plenty of other games to play anyway.

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