Global football governing body FIFA reportedly wants publisher EA to pay over $1 billion in order to use the FIFA license for its games—more than double the amount agreed upon previously by the two companies. According to a new report by the New York Times, this financial dispute is one of the core reasons behind Electronic Arts’ recent consideration of renaming the multi-billion dollar sports game series to EA Sports FC.
Multiple sources close to the negotiations reveal that EA and FIFA have been in talks for at least two years about renewing its current 10-year licensing agreement. As it stands, the current contract is set to expire after next year’s Qatar World Cup in November 2022. The main reason, insiders say, surrounds how much money EA will pay FIFA in order to use the FIFA name and branding. Up until now, FIFA’s licensing agreement with EA has netted the organization about $150 million per year.
However, FIFA is now asking for over $1 billion every four years — in line with the World Cup’s four-year cycle. The major reason behind this push apparently comes from FIFA president Gianni Infantino, who is trying to raise $2 billion to create a new World Cup specifically for club teams. Infantino is also looking to increase the frequency of the World Cup to every two years, instead of its current four-year cycle.
A new report in the @nytimes states that the dispute between EA and FIFA is related to cost and new revenue streams
FIFA wants to charge EA double the amount ($1bn+ every 4 years) for the license and limit EA’s ability to monetise beyond the game itselfhttps://t.co/5gNas9Iz9b pic.twitter.com/hZ9YnOZDMN
— Daniel Ahmad (@ZhugeEX) October 13, 2021
In response, EA Sports GM Cam Weber released a statement earlier this week revealing that EA was “reviewing [its] naming rights agreement with FIFA.” EA also recently filed a trademark application in the UK and EU for “EA Sports FC,” positioning itself for a possible split. In addition to these financial disputes, FIFA is reportedly trying to limit EA’s exclusivity rights to only use in a soccer video game, rather than expanding revenue earn to other channels. The report claims that this is likely an attempt by FIFA to open up licensing deals with other publishers like Epic Games, in order to increase their revenue. EA, however, is not happy with this and pushed back by stating it should be allowed to explore other avenues such as “arena video game tournaments” and NFTs.
If you’re a FIFA fan, how would you feel about the series possibly being renamed to EA Sports FC? Let us know in the comments below.
[Source: New York Times]
