Madden 12 News Post

The Sports Business Journal is reporting that the NFL and EA have come to terms on extending the current exclusive deal one more year with the uncertainty surrounding the 2011 NFL Season.

"The NFL has restructured its lucrative licensing and sponsorship contract with Electronic Arts to account for the sport’s uncertain future, significantly reducing the video game maker’s contractual obligations next season but adding a year to the deal, according to several well-placed sources. The contract now runs through 2013.

The league is believed to have so far rebuffed pleas for fee reductions from other licensees and sponsors, many of which, like EA, find it difficult planning for the next season under the threat of a work stoppage. The league’s collective-bargaining agreement with the players expires March 4, and the two sides are far apart on reaching a deal.

EA, however, is a special case, with its iconic “Madden” video game title. The licensing deal it agreed to with the league in early 2008 is believed to be worth well into nine figures in guarantees and royalties over its original five-year term. That stands as one of the most, if not the most lucrative non-TV contract the NFL enjoys.

The NFL Players Association, which signed a companion EA deal for rights to the players, reaps regularly between $30 million and $40 million annually, according to the union’s annual filings with the Labor Department.

The league deal allows EA to use team colors, names and logos."

This basically means that EA has exclusive rights to Madden now until after Madden NFL 14 -- or roughly right about the time the next generation of consoles are set to hit.

This just shows how strong of business partners the NFL and EA Sports are at this point. The NFL is giving EA a break on payments this year and has basically given them an additional year as a make-up of sorts to make right. Also, if you read my 2011 Predictions Post back in January, you saw this was my first prediction, that the deal would be extended in some way this year.

So in that respect, this news is not unexpected -- and with the deal stretching into the next console generation, I have serious doubts any other company is going to be in a position enter the market anytime soon due to the extreme cost of entry into quality sports game development that will be present at that time.

Thanks to Pasta Padre for the news tip.

Game: Madden NFL 12Reader Score: 6.5/10 - Vote Now
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Member Comments
# 1 mike24forever @ 02/14/11 05:19 PM
Oh Boy!!! This is going to go over well here at OS!!! This is fine by me!
# 2 24 @ 02/14/11 05:21 PM
# 3 ChuckaLuk @ 02/14/11 05:23 PM
I won't support Madden 12. The Sim Standard 4 Life!!!
# 4 skinnybonez @ 02/14/11 05:25 PM
very sad day
# 5 Rules @ 02/14/11 05:32 PM
Can you say......

# 6 cdon2k @ 02/14/11 05:32 PM
considering making this the last time i post regarding madden/ea just dont care anymore.
# 7 KingOfGamesNYC @ 02/14/11 05:34 PM
SMH, its getting to a point were im may just might only watch football on tv. I guess i have NO CHOICE but to either buy madden or NOT buy madden since there are no other NFL games SMH, I will watch what i say because this site is very pro EA
# 8 Bellsprout @ 02/14/11 05:36 PM
Sounds like it's a good moneymaker for both sides. Makes perfect business sense.
# 9 av7 @ 02/14/11 05:37 PM
Let me pop in here and say everyone should know how to post in a civil, mature manner regarding this topic. It does not matter what company it is, the post guidelines are expected in every area of this site.
# 10 LingeringRegime @ 02/14/11 05:44 PM
Two years without Madden, and I am not dying. Couple more years won't kill me without an NFL licensed game. Time to turn to some text sims for football.
# 11 RedZoneD25 @ 02/14/11 05:46 PM
Originally Posted by DEFTFUNDAMENTALZ
It's only one year people. Not like it was a ten year contract.
Exactly. Just an extra year.
# 12 dannyr326 @ 02/14/11 05:46 PM
****ing monopolies!!! shouldn't there be some sort of antitrust law against this? (speaking out of anger). What 2K needs to do, if they havent already, is to work (continue) on their football series with generic players/teams and try to release a competing product (like Backbreaker) for the future. Who knows if they have the resources? but it is definitely what the consumer wants.
# 13 mburke2 @ 02/14/11 05:51 PM
I can't fault either party for extending the extra year. Its smart business like Dayman said. The NFL is giving EA a break on fee payments this year due to the impending work stoppage and they're giving EA the extra year to make up for potential lost revenue if the game loses popularity because of a lost season. Like others have said, what's the difference in one more year?
# 14 JohnDoe8865 @ 02/14/11 05:55 PM
We need a new iteration of Front Office Football or another NFL text sim!
# 15 videlsports @ 02/14/11 05:55 PM
Time to get college Lock down for 2k... take 2 needs to something now... this is just crazy.. GET THE COLLEGE LISCENCE.. YOU CANNOT just survive on The NBA and Tennis. Soon your baseball contract will run out.. SMH at this..
# 16 Pete1210 @ 02/14/11 05:55 PM
Too bad. At this point I wonder if 2K would even bother making an NFL game if they could.
# 17 elgreazy1 @ 02/14/11 05:59 PM
This is horrible news. Absolutely horrible.
# 18 ryan36 @ 02/14/11 06:00 PM
Originally Posted by videlsports
Time to get college Lock down for 2k... take 2 needs to something now... this is just crazy.. GET THE COLLEGE LISCENCE.. YOU CANNOT just survive on The NBA and Tennis. Soon your baseball contract will run out.. SMH at this..
Wait, so your response to your anger about EA getting an exclusive which "hurts sports gaming" is for 2k to go exclusive in other sports? Wow.
# 19 HawkeyMediaPlus @ 02/14/11 06:02 PM
Meh.. No big deal.. I'll just never buy Madden again..
# 20 DeuceZeroz @ 02/14/11 06:04 PM
Im not really upset with an extra year of Madden. I just think its the fact that its another year without NFL style competition.(2K, NaturalMotion etc)

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