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FIFA, the video game, is at war with FIFA, the football organization. Game publisher Electronic Arts is considering a generic alternative to its 28-year, $ 20 billion franchise after it was reported that licensing talks had stalled due to a seven-figure fee.
EA’s FIFA license agreement expires at the end of the 2022 FIFA World Cup in December next year, and the company has not yet reached a new agreement. Negotiations between the two countries have been going on for two years, they said New York Times. The main obstacle is money: The times reports that FIFA wants to more than double the amount it receives from EA to more than $ 1 billion for each four-year cycle of the World Cup. On top of that, FIFA wants to hit the FIFA brand on more than just EA’s video game, pursuing new partnerships outside of its exclusivity deal.
“As we look ahead, we are also exploring the idea of renaming our global football games EA Sports,” wrote Cam Weber of EA Sports after the launch in October. FIFA 22. “This means that we are reviewing our naming rights agreement with FIFA, which is separate from all our official partnerships and licenses throughout the football world.
Presentation FIFA without FIFA it is complicated. However, EA’s deal with FIFA is only one of about 300 licenses that power the video game. As the international governing body of football, FIFA enforces football rules, facilitates player transfers and, of course, manages the World Cup, watched by billions. What FIFA does not control is perhaps more important to EA: the many football clubs, leagues and specific players. Most of all, what EA gets from its FIFA license is a very big, very important name.
“The fear we’ve always had is how much money we pay FIFA for what you get,” said Peter Moore. During his 10 years at EA, first as head of EA Sports and then as chief operating officer, Moore was present at licensing negotiations with FIFA before leaving the company in 2017. He called the current situation, especially after one year remaining from the license agreement, “unprecedented.”
What sports fans want from a sports game is authenticity, says Moore, who now works at Unity. FIFA 22 recreated 17,000 players, 30 leagues, 700 teams and over 90 stadiums with incredible loyalty. Not much of this is due to FIFA. There is still much of the game that can be played through national teams, leagues and clubs. In addition, Moore says, FIFA itself has had its fair share of controversy in recent years: the 2015 corruption scandal, bribery allegations. The value of the FIFA brand is huge, yes, but according to Moore, for much younger people, FIFA is more recognizable as a video game than as a corporate entity.
“This is a time to say goodbye to FIFA,” said Moore. “If ever there was a time when EA had to leave, you leave now.” EA recently registered EA Sports FC as a trademark in the United Kingdom and the EU. Moore offers to take only half of the hundreds of millions that EA spends on the FIFA license to start creating this game. “Clearly, it may be time for both sides to think about doing something different,” Moore said.
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