Big picture: A New York Times report shed light on why Electronic Arts is considering changing the name of its FIFA soccer games. There could be a dispute between EA and FIFA about how much the name is worth and what EA can do with it.
Last week, EA celebrated the successful release of its latest FIFA game, FIFA 22. In the same announcement, the company said it is also considering dropping the “FIFA” title from the series, which it licenses from the same country’s global football governing body. name, exclusive. Presumably, this is because EA games represent many more football leagues around the world than just FIFA, which hosts the World Cup.
However, New York Times sources speaking that EA and FIFA disagree on how much EA should pay for a license and how a gaming company should be allowed to monetize it. In 2013, the licensing agreement between the two was extended until 2022, and it looks like FIFA is demanding additional money from EA during the negotiations to renew the agreement.
According to sources, FIFA wants EA to pay more than double what it currently pays for the title, pushing the price to over $ 1 billion for every four-year FIFA World Cup cycle. FIFA also wants to restrict what EA can do with the license.
For example, the Ultimate Team feature in FIFA games, where customers spend real money to create player rosters in the game, brings EA over a billion a year. “This is also a feature that FIFA would prefer to block and possibly sell on lucrative – and separate – deals,” the NYT article said. FIFA may be trying to explore more revenue streams for itself, while EA may want to expand the number of ways it uses the FIFA license in its games.
Earlier this week, EA registered the trademark with United Kingdom and European Union The Intellectual Property Offices for EA Sports FC is a provisional title that it may use if it omits the FIFA title. EA’s advantage in these negotiations is that FIFA and the FIFA World Cup are far from the only football brands it has licensed for FIFA games. He has deals with many other national and regional teams from all over the world.