FIFA Reportedly Wants EA Sports To Pay More Than Double To Use Their Branding
FIFA, one of the most successful video game series in the world, is based on EA Sports' FIFA franchise. Since the 1990s, the gaming giant has been making simulation soccer games with FIFAs name and brand since the company was founded, and as the sport popularity in the United States increased, so did the video game series. Of course, popularity also comes profits, and with profits come new contracts.
According to a report in the New York Times, EA and FIFA are having difficulty reaching an agreement on the terms of their next contract. The biggest disagreement is that FIFA's value is rising from EA'S hit franchise, and as a result, the organization wants Ea to pay more money for using its name and brand. EA, on the other hand, wants the freedom to expand the franchise beyond simple simulation sports games.
According to the report, FIFA values its EA licenses around $150 million. This is FIFAs unique-most valuable commercial agreement. If EA can successfully develop the series into a new brand, this would be wildly disappointing for FIFA. Of course, the scary part for FIFA is that theres no reason why EA cant do this. Konamis Pro Evolution Soccer series, which has always managed to incorporate many of the world s official brand names into its own games, has been EA's biggest competitor over the years. That theoretically implies that EA may follow suit.
EA also has the opportunity to set a precedent with its sports titles, allowing it to go beyond being associated with reputable organizations, such as FIFA, and instead become an Ea property that goes straight to the source. Were seeing EA do exactly that with college football right now it has removed itself from the NCAA in the upcoming EEA Sports College Football series. With the company considering renaming the series EA Sports FC, maybe this is what they really want: not being tied to other sports teams with their sports titles.