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At least two years of talks about renewing the contract that allows Electronic Arts, through its EA Sports division, to use the organization’s name have hit the wall, according to multiple people close to the negotiations. The possibility of a permanent break after next year’s World Cup in Qatar — when the current 10-year agreement ends — was made explicit in a letter released last week by Cam Weber, the executive president and general manager of EA Sports.
In it, Weber raised the unthinkable: FIFA without FIFA.
“As we look ahead,” Weber wrote in discussing the future of the series, “we’re also exploring the idea of renaming our global EA Sports football games.”
The core of the dispute is financial. FIFA is seeking more than double what it currently receives from EA Sports, according to people with knowledge of the talks, a figure that would increase its payout from the series to more than $1 billion for each four-year World Cup cycle.
The dispute is not just about money, though. The talks have also stalled because FIFA and EA cannot agree what the gamer’s exclusive rights should include.
FIFA would prefer to limit EA’s exclusivity to the narrow parameters around use in a soccer game, most likely in an effort to seek new revenue streams for the rights it would retain. EA Sports, meanwhile, contends the company should be allowed to explore other ventures within its FIFA video game ecosystem, including highlights of actual games, arena video game tournaments and digital products like NFTs.
- According to nytimes, Fifa is asking more than 1 billion dollar in 4-year WC cycle from EA for renewal of Fifa license, which includes the name, the logo, and rights to WC.
- Money isn't the only issue, Fifa and EA are not in agreement how the license should be used, Fifa would prefer to limit license use to the game itself, EA wants to explore other options and revenue streams.
- EA has registered two trademarks for the name EA Sports F.C. they are already prepared for a future with a different name.
- EA is confident it can retain its dominance over soccer games, thanks to another 300+ licenses and agreements with domestic leagues and other competitions around the world like UEFA.
EA Sports Is Planning for a FIFA Without FIFA (Published 2021)
The end of a long and profitable relationship with soccer’s governing body would mean renaming one of the most popular video games of all time.
www.nytimes.com