EA and FIFA contract renewal negotiations stalled due to license costs-report

According to the “New York Times” report, Electronic Arts and FIFA have disputes over costs, and negotiations for contract renewals have stalled.

Since EA’s current 10-year contract with FIFA will expire after the 2022 World Cup, negotiations on EA’s use of FIFA and FIFA World Cup brand capabilities are deadlocked, and it seems that it mainly comes down to money.

According to the report, FIFA hopes to be more than double the fees currently paid by EA. Double means that EA must pay the organization $1 billion for the World Cup cycle, which is held every four years. Currently, the organization has obtained a $150 million FIFA license from EA.

In addition to money, the report also counted another sticking point related to the content that should be included in the player’s exclusive rights. FIFA wants to limit EA’s exclusivity so that it can seek new sources of income for its reserved rights. But according to the New York Times, EA hopes to expand by including digital products such as actual game highlights, arena video game tournaments and NFTs.

If the two companies cannot reach an agreement, the franchise will no longer feature the FIFA brand or any FIFA-related content.Failure to sign the new contract will not affect other licenses, such as player names and portraits, because EA and FIFRO recently signed a new agreement.

However, this will force EA to change the game that has a nearly 30-year-old franchise right, which may be EA Sports FC, which has recently been trademarked by the company. Last week, Cam Weber, general manager of EA Sports, mentioned the possibility of a new name for the franchise.

Losing the FIFA brand may or may not hinder EA’s future sales of football/soccer items, but many people seem to think that the FIFA organization may be hit by the lack of exposure outside the sports field, not to mention that it will abandon EA alone for a year Just made 150 million US dollars.

As of 2021, the FIFA series has sold more than 325 million copies, and has sold more than 20 billion U.S. dollars since 1993. The latest version of FIFA 22 was released on October 1. As of last week, a team of 9.1 million players with more than 7.6 million ultimate players has created and played more than 460 million games.