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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.

Quote:
"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.

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Member Comments
# 401 mestevo @ 02/18/11 10:27 AM
This is what I didn' have time to do yesterday.

Madden sales are basically flat on HD consoles, and decreased on mobile and Wii, with death of the PS2 and the continued poor performance by PSP platform accounting for a majority overall decline.

The far right 2 columns show sales of Madden 10 week 78 v M11 week 10, and YOY percentage. I am sure many of us would have expected it to be a much smaller number, I am not sure I was expecting the 360 and PS3 to sell 16-18% of their totals between weeks 27 and 78.

Madden 10 sold 1.8m copies between week 27 and now. Certainly can't expect that again due to the PS2/PSP, but the HD consoles were responsible for 780k, little reason to believe Madden 11 won't do similar numbers over the next year.

I am not sure there's much to be unhappy about here aside from probably the Wii numbers declining. This would be more interesting with multiple years probably (as if it isn't already riveting as it is! )
 
# 402 Boilerbuzz @ 02/18/11 11:05 AM
Quote:
Originally Posted by Dayman
Sounds like it's a good moneymaker for both sides. Makes perfect business sense.
Where did you get that from? Do you realize that this started with EA asking for "relief" of the payouts due to the possible lockout. What's not being told is that the request for relief is NOT just related to the lockout. EA is NOT making the money you're implying. But, whatever.
 
# 403 mestevo @ 02/18/11 11:31 AM
Quote:
Originally Posted by Boilerbuzz
Where did you get that from? Do you realize that this started with EA asking for "relief" of the payouts due to the possible lockout. What's not being told is that the request for relief is NOT just related to the lockout. EA is NOT making the money you're implying. But, whatever.
You're just asserting a different implication is all, there's little to prove either of you wrong, just different interpretations to deal... often meshed with our own personal biases and/or objectivity/subjectivity on the subject.

As much money as EA spends on marketing, the NFL's games themselves are probably the biggest driver behind Madden (and the ad spots to relevant eyeballs they provide).

That's why they asked for relief, IMO. No games makes it a more difficult ROI to achieve. I am sure their current deal was negotiated with certain market expectations, and one of them was surely 'NFL games are being played'.
 
# 404 knighthawksfan @ 02/18/11 03:10 PM
Well I am 50/50 right now if I really want to buy madden 12 or not because I am not a huge nfl fan I am more of a college sports guy. So I might just buy ncaa football 12 and call it a day.
 
# 405 knighthawksfan @ 02/18/11 03:11 PM
Well I am 50/50 right now if I really want to buy madden 12 or not because I am not a huge nfl fan I am more of a college sports guy. So I might just buy ncaa football 12 and call it a day.
 
# 406 Boilerbuzz @ 02/18/11 04:57 PM
Quote:
Originally Posted by mestevo
You're just asserting a different implication is all, there's little to prove either of you wrong, just different interpretations to deal... often meshed with our own personal biases and/or objectivity/subjectivity on the subject.

As much money as EA spends on marketing, the NFL's games themselves are probably the biggest driver behind Madden (and the ad spots to relevant eyeballs they provide).

That's why they asked for relief, IMO. No games makes it a more difficult ROI to achieve. I am sure their current deal was negotiated with certain market expectations, and one of them was surely 'NFL games are being played'.
I don't disagree with what you're saying. I was just saying that the "relief" talks with the NFL and EA has been going on before any talk of the lockout. And that the perception that EA is financially benefiting greatly with the deal is off the mark. Not implying anything beyond that.
 
# 407 boooey @ 02/18/11 07:32 PM
dam.. first Nokia sells out to Microsoft, and now this even worse bad news.. its been a really bad week.
 
# 408 JaymeeAwesome @ 02/19/11 12:14 PM
You do realize that madden doesn't have to put a good game at this point. The name madden is the only name associated with football gaming, they can put out a remake of techmo bowl for madden 12 and still make a profit. Posting in forums is not going to make a difference, do it with your wallet. That is the only language that businesses know, money. I for one will always buy madden because as long as there are real NFL names attached to a game, I'm gonna buy it.
 
# 409 mestevo @ 02/19/11 12:51 PM
Quote:
Originally Posted by jaymee13
You do realize that madden doesn't have to put a good game at this point. The name madden is the only name associated with football gaming, they can put out a remake of techmo bowl for madden 12 and still make a profit. Posting in forums is not going to make a difference, do it with your wallet. That is the only language that businesses know, money. I for one will always buy madden because as long as there are real NFL names attached to a game, I'm gonna buy it.
I give people more credit than that, if I loaded up the Madden 12 demo and it looked like Madden Arcade, I am not buying it. I put a lot of time into these games, not just stare at the cover or the title screen at the name.

Madden is good for marketing, but the name has had little to do with the game for years.
 
# 410 Skyboxer @ 02/19/11 06:24 PM
Big freaking deal. This gen has been the gen without a great nfl football game anyways. We can hope next gen is better. Ill just go with a sim game. Ill try each madden but it will be rental or used though.
 
# 411 dickey1331 @ 02/20/11 07:54 AM
Quote:
Originally Posted by Boilerbuzz
Where did you get that from? Do you realize that this started with EA asking for "relief" of the payouts due to the possible lockout. What's not being told is that the request for relief is NOT just related to the lockout. EA is NOT making the money you're implying. But, whatever.
EA may not be making money from this but it’s not "hurting" them. I was reading an article on CNBC and EA has no debt. I found that interesting as this seems to prove that EA makes smart decisions for a big company to have no debt. I think this also shows that EA has the money to extend the license as well.
 
# 412 kjcheezhead @ 02/20/11 01:27 PM
Quote:
Originally Posted by mestevo
I give people more credit than that, if I loaded up the Madden 12 demo and it looked like Madden Arcade, I am not buying it. I put a lot of time into these games, not just stare at the cover or the title screen at the name.

Madden is good for marketing, but the name has had little to do with the game for years.
You give people too much credit. The millions made on Snuggies, Furbies and Pet rocks tell me people will buy anything if it is marketed well.

Current gen Madden 06-09 are regarded as terrible games, even by most die hard Madden fans. How is it that Madden 10 and 11, (which are much improved products) didn't sell astronomically more units? The answer, imo, is that the NFL and its players has been the driving force behind the sales the whole time and the actual game quality is a distant second to that.
 
# 413 mestevo @ 02/20/11 03:48 PM
Quote:
Originally Posted by kjcheezhead
You give people too much credit. The millions made on Snuggies, Furbies and Pet rocks tell me people will buy anything if it is marketed well.

Current gen Madden 06-09 are regarded as terrible games, even by most die hard Madden fans. How is it that Madden 10 and 11, (which are much improved products) didn't sell astronomically more units? The answer, imo, is that the NFL and its players has been the driving force behind the sales the whole time and the actual game quality is a distant second to that.
And just like Snuggies, Pet Rocks, and Furbies, there's a market and a target audience. America is overweight, if we take a bite of something we don't like, most aren't going to finish eating it.

As for the sales numbers posts (back to this topic again in record time), I defer to my previous posts just a page or two back that were ignored.
 
# 414 kjcheezhead @ 02/20/11 05:13 PM
Quote:
Originally Posted by mestevo
And just like Snuggies, Pet Rocks, and Furbies, there's a market and a target audience. America is overweight, if we take a bite of something we don't like, most aren't going to finish eating it.

As for the sales numbers posts (back to this topic again in record time), I defer to my previous posts just a page or two back that were ignored.
I am referencing your numbers from a few pages back. They support what I'm saying. Sales are basically flat on HD consoles, yet the quality of Madden 11 is much higher than Madden 09.
 
# 415 mestevo @ 02/20/11 05:35 PM
Quote:
Originally Posted by kjcheezhead
I am referencing your numbers from a few pages back. They support what I'm saying. Sales are basically flat on HD consoles, yet the quality of Madden 11 is much higher than Madden 09.
That's actually a good point, looking at it again, the HD consoles combined have surpassed the numbers of the highly regarded PS2 versions, with far fewer consoles on the market. Sales leading up to 10/11 were caught up in the gradual death of the PS2 which was still selling over 1m copies until this year with the huge drop from 948k to 391k (so far).

PS2 topped out at 4.36m with Madden 05. Madden 10 on PS3/360 sold 5.44m copies in the last 70+ weeks, and 11 is sitting at 4.2m at 27 weeks.

Makes the move towards Facebook and microtransactions look a lot smarter if they think they're reaching market saturation. Get potentially more $$ per box, online pass and more DLC generates revenue from used sales that they got almost nothing from before.
 
# 416 bkrich83 @ 02/21/11 12:56 AM
Quote:
Originally Posted by kjcheezhead
I am referencing your numbers from a few pages back. They support what I'm saying. Sales are basically flat on HD consoles, yet the quality of Madden 11 is much higher than Madden 09.
Valid point, although the continued downturn in the economy may have been a factor as well.
 
# 417 rooney8 @ 02/23/11 06:31 AM
Just saw this news. Very disappointed but kind of expected. It shows how eager the NFL are to keep this exclusive license. You don't do this for a company unless you see a long future working together. Expect when the CBA is sorted another long term deal to be agreed between the NFL and EA.
 
# 418 Only1LT @ 02/23/11 11:32 AM
Quote:
Originally Posted by mestevo
That's actually a good point, looking at it again, the HD consoles combined have surpassed the numbers of the highly regarded PS2 versions, with far fewer consoles on the market. Sales leading up to 10/11 were caught up in the gradual death of the PS2 which was still selling over 1m copies until this year with the huge drop from 948k to 391k (so far).

PS2 topped out at 4.36m with Madden 05. Madden 10 on PS3/360 sold 5.44m copies in the last 70+ weeks, and 11 is sitting at 4.2m at 27 weeks.

Makes the move towards Facebook and microtransactions look a lot smarter if they think they're reaching market saturation. Get potentially more $$ per box, online pass and more DLC generates revenue from used sales that they got almost nothing from before.

Is there any particular reason why you are only comparing PS3 and 360 numbers to just the Madden 05 PS2 numbers, instead of PS3/360 numbers to Madden 05 PS2/XBOX numbers?
 
# 419 KBLover @ 02/27/11 09:29 PM
Quote:
Originally Posted by mr_president
i will contend that running the ball in madden can be fun, but for me it does not offer the best experience. the suction,teleporting and line interaction seems to always find a way ruin it for me.
Tell me about it.

I didn't get M11, but in M10 most of my time trying to figure out sliders was to get the run game to play out realistically without all of this and make player abilities stand out.

I gave up.
 
# 420 delspf @ 02/28/11 11:06 AM
Pretty much gave up on EA sports in general. Can't remember the last madden I bought, can't see me buying it before 2014 either
 


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