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nytimes: FIFA is asking EA for more than 1 billion$ in 4-year cycle for renewal of the license, EA exploring brand name change

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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 is confident it can retain its dominance over soccer games
As much as I despise EA's continuous milking of the brand I see little reason to doubt that EA can retain its dominance even without being FIFA anymore, unfortunately. Though for lay persons eFootball may then at least have an initial fighting chance (lol).
 
Eh, EA doesn't have a great track record of trying to build their own brands the last decade, they've been pretty heavily reliant on popular licenses like NFL, Fifa, and Star Wars.

Yeah changing brand is risky, they can pull it off but its not an easy thing to deal with.

Fifa is looking at all the money ultimate team is generating and they are like, "I want my share of that" lol.
 
Hmm, I don't see EA budging for 1b+. They would sooner drop the FIFA label. I'd imagine FIFA wouldn't want to risk losing any potential profit they had been previously making from this partnership though. I forsee the asking price being negotiated down quite a bit from this initial ask.
 
I heard nobody's using the Professional Evolution Soccer brand anymore, EA can take squatter's rights on it
 
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it will be fine. they will come to an agreement for a little less money. these are two crows that need each other.
 
Damn that's a fucking lot of money.
But calling the game anything different than FIFA just doesn't feel right.
 
Everyone who knows the FIFA, could have guessed this.
Also not surprising for them asking for more and more, given how much money EA makes thanks to their MTX stuff. But I would really like to see a new EA Football game without the FIFA license, without all the teams and players and how that would sell. Because let us be honest here: When PES was a thing, FIFA sold better, because people could play as their team
 
FIFA is really on the back foot here. They don't have much leverage here, I think
I wouldnt downplay the importance of the brand, moving on would open up the threat and possibility for another big player to enter the market down the line while securing that Fifa brand name. and competing with EAs series.

Fifa is also run like a organized crime family so they probably would try to screw EA over in some way down the line.
 
But I would really like to see a new EA Football game without the FIFA license, without all the teams and players and how that would sell.
The FIFA license doesn't include all the teams and players. EA already made a separate deal for that last week with FIFPRO.
FIFA license only includes the name, logo and the world champion stuff afaik.

Their biggest risk is another big player that tries to go for the license resulting in Tencent Fifa 2023 or something. I'd also argue that the fact that Qatar will likely be a controversial world cup, can help EA in breaking away from the name.
 
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The FIFA license doesn't include all the teams and players. EA already made a separate deal for that last week with FIFPRO.
FIFA license only includes the name, logo and the word champion stuff afaik.
Okay, I misunderstood this. Then I don't see why they should keep that name, if they still have all the players, clubs and leagues under contract.
Sure it's an established brand no doubt, but with proper marketing they can go forward without FIFA
 
I wonder what kind of messaging they'll use to keep fans who buy solely for the FIFA name. Does the average non-enthusiast know or care what company makes their football game? Could someone else bid for the license and make a FIFA game that swoops up the market share?
 
EA pays the NFL 1.5 billions over 5 years for a single league and a game that only performs in NA.

FIFA for 500m per 4 years was a bargain, especially since EA makes more than 1billion a year out of FIFA
 
Football Ultimate Team would be a great title actually, yeah. It keeps the FUT acronym, and highlights the most popular part of the game (in addition to the biggest revenue driver of the company).

yup, thats a solid branding and they own the name already.

Plot twist: Konami will buy the FIFA rights and the next Winning Eleven will be called FIFA 23.

ahah now that would be entertaining stuff
 

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(Thanks Fiendslayer for the heads up)

So not only EA is exploring options, Fifa is also making a move. both sides want to be the powerful side of the conversation but I suppose a break up doesn't seem far fetched.
 
It's easier for EA to file off the FIFA name and ship a new game with the same clubs than it would be for FIFA to find a competent developer and make a game with the same features as the last FIFA game.
 
FIFA won't find any developer with the resources and willing to accept the deal EA refused. Maybe Take-Two, but seems very far-fetched. I feel they don't realize how powerless they are, unless they accept a deal from a mobile developer for a mobile football game.
 
Tbh I don't really see another publisher/developer taking on the FIFA licence
You would need a very big team and a lot of work to get into the ballpark of the EA games.
While also only having one year for the damn thing and starting from scratch.
I doubt FIFA will be generous with its deadlines since they like money very much.
 
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