EA Sports has confirmed that it is considering renaming the FIFA series. Now we probably also know what FIFA demands for a continuation of the games under the old name, and the deal sounds expensive.
What’s going on? Recently, there have been increasing reports that there is some friction between EA and FIFA. The 10-year contract between the two parties expires next year, and an extension is likely being discussed.
EA has even openly stated that it is also considering renaming the FIFA series. Cam Weber, head of EA Sports, wrote in a letter earlier this week: “With an eye on the future, we are also exploring the idea of renaming our global EA Sports soccer games.”
This could be the end of a tradition that has existed since 1993 with FIFA International Soccer. Since then, every soccer game from Electronic Arts has had the FIFA name in the title.
This might change with the next installment, and now we also know what factors are problematic in the discussion. According to the New York Times, FIFA wants to be significantly compensated for a new contract and seeks additional rights to participate.
1 billion dollars for the FIFA name and additional restrictions
What’s behind this: Apparently, FIFA is now demanding double the amount, about 1 billion US dollars for 4 years, during which EA can use the name and FIFA licenses. This would be about twice as much as the old contract, which was at 500 million US dollars for 4 years. The fundamental disagreements between EA and FIFA are not just about the price.
- FIFA apparently wants to significantly restrict the monetization options within the games and retain exclusive rights for itself.
- In return, EA wants to establish further monetization opportunities. The NYT mentions highlights from current games, arena tournaments, and digital products like NFTs.
- Allegedly, FIFA also considered the possibility of selling its licenses to publishers like Epic Games, who have no direct connection to soccer.
Why is EA considering a change? It’s not just about the high amount a new contract would cost, but also about in-game monetization, whose restrictions could lead to further losses for EA. The reasons are not only financial.
Live services in the form of packs and other monetization bring EA billions in revenue every year. For example, between April 2020 and March 2021, it was around 4.6 billion US dollars. 1.2 billion of that came solely from FIFA Ultimate Team.
Will FIFA soon have a different name? That possibility certainly exists. “EA Sports FC” has already been registered as a trademark. According to IGN, a decision is expected at the end of this year, and EA will likely not accept restrictions on its main revenue sources.
Moreover, EA likely was not pleased that FIFA is looking for other partners while both companies have been collaborating for years, and the publisher had invested hundreds of millions of dollars. This is also echoed by former EA employee Peter Moore, who played a significant role at EA for a long time:
“I will say: ‘Wait a minute: We literally spent hundreds of millions of dollars to build this up, and you are telling me that Epic Games can come in and get a license for the name we built and promoted and that has become synonymous with games? […] Then, yes, I will negotiate and fight against it.'” (via New York Times)
What happens if there is no deal? Primarily, a huge marketing deal and a historic partnership would come to an end for both companies. Advertising would change significantly as a result.
For players, not much should change. Even without the FIFA license, EA would still have enough licenses in hand with the UEFA Champions League, the Bundesliga, or FIFPro, the world’s largest player representation. This partnership with thousands of player names was only recently extended.
So there will not suddenly be strange footballer names in the next EA Sports game. However, what else might change is currently hard to foresee. We will have to wait and see if the two parties can come to an agreement in the end.
What do you think about this topic? Do you believe that both parties will still come to an agreement? Or do you not care about this issue?
