Electronic Arts CEO Andrew Wilson has reportedly told staff that he feels the publisher might actually be better off losing the FIFA licence.
EA and FIFA have been partners for 30 years, but that relationship is in jeopardy as the pair cannot seem to agree on renewing the long-term deal.
As we covered a while back, a New York Times report claimed that negotiations between the two companies had stalled, with the sticking points being EA’s demands for wider-reaching rights and FIFA’s desire to double the current payment to $2.5 billion over the next decade. FIFA claims that the cost should go up as the revenue EA generates from the licence has scaled dramatically as microtransactions have become more popular.
Shortly after the New York Times report surfaced in October, Wilson held an internal company meeting to explain EA's position. Details of that meeting have been shared with VGC.
When asked in the meeting why EA would even consider ending the deal with FIFA, Wilson said:
I’m going to be more open… more open than I’ve been with the outside world. We’ve had a great relationship with FIFA over the past 30-odd years. We’ve created billions in value… it’s just huge. We’ve created one of the biggest entertainment properties on the planet.
I would argue – and this may be a little biased – that the FIFA brand has more meaning as a video game than it does a governing body of soccer. We don’t take that for granted and we try not to be arrogant. We’ve worked really hard to try and make FIFA understand what we need for the future.
Basically, what we get from FIFA in a non-World Cup year is the four letters on the front of the box, in a world where most people don’t even see the box anymore because they buy the game digitally.
In a World Cup year of course, we get access to the World Cup, but in the broader context of global football on an annualised basis, the World Cup is important but it’s not the most important. We have 300 other licences that give us the content that our players engage with the most and the most deeply.
Wilson even went as far as to claim that the FIFA licence has actually held back EA's ambitions for its video game series:
As we’ve looked to the future we want to grow the franchise, and ironically the FIFA licence has actually been an impediment to that.
Our players tell us they want more cultural and commercial brands relevant to them in their markets, more deeply embedded in the game… brands like Nike. But because FIFA has a relationship with Adidas, we are not able to do that.
Our players tell us they want more modes of play, different things beyond 11v11 and different types of gameplay. I would tell you, it’s been a fight to get FIFA to acknowledge the types of things that we want to create, because they say our licence only covers certain categories.
Our players want us to expand into the digital ecosystem more broadly… our fans are telling us they want us to go and participate in that space.
Our FIFA licence has actually precluded us from doing a lot of this stuff. Again, FIFA is just the name on the box, but they’ve precluded our ability to be able to branch into the areas that players want.
Our players are telling us they want us to move really quick: ‘we want you guys doing stuff fast’. And in order to do that, we need a level of freedom to be truly creative, innovative and experiment in the marketplace.
Because of the nature of the approval timetables and the various things around our FIFA licence, that’s actually been really hard and we’re moving much slower than we want.
He adds that EA won't be held to ransom when it comes to the amount of money FIFA is expecting to be paid for the rights:
I had a conversation with [FIFA president] Gianni Infantino just a couple of weeks ago where I said, ‘listen, the money’s a thing: we don’t want to pay more money than this licence is worth. But it’s not about that, it’s really about our ability to deliver games and experiences that our fans want, in a timely fashion’.
Wilson does state that EA is keen to continue the relationship and is making every effort – but, if it doesn't happen, it might actually be better for the company and its fanbase:
At the end of the day, I don’t know if we’re going to get there. And ironically, if we don’t, and we’re able to rebrand our game and take control of this global football ecosystem that we’re going to build, ironically we’ll probably generate more revenue, and have more fans, and have more engagement over time.
Because we’ll be able to work with more partners, we’ll be able to build more modes of play, we’ll be able to expand more deeply and broadly into the digital ecosystems around the fabric of football, and more than anything we’ll be able to move really, really fast.
We’re going to work through this, we’re going to be thoughtful and we want to be good partners with FIFA, but I wouldn’t be surprised if we ultimately move in a different direction. At the end of the day, I think that might even be better for our gamers than continuing with those four letters on the box.
Should negotiations fail, it could be that the upcoming FIFA 23 will be the final game in EA's line to have the FIFA brand on the box. The 10-year deal expires after the World Cup, which takes place in Qatar later this year.
EA has already pointed out that, should it lose the licence, it will retain all of the other league, player and stadium licences it already has in place. FIFA responded with its own statement, claiming that it was open to working with other video game companies should the deal not be renewed.
EA has filed multiple trademark applications for ‘EA Sports FC’, a potential replacement name for the series.
[source videogameschronicle.com]
Comments 61
Van Dijk <3
That's rich
"2 money hungry companies argue over money"
It's almost delicious that FIFA would demand more cash knowing of EA's microtransaction exploits.
But for all of their faults, at least the FIFA games have been complete on cartridge, which I can hardly say for other annual sports games on Switch.
I've never really been a fan of FIFA games, but I'm intrigued to see how this plays out. Are EA genuinely ready to dump the license or is this all a game of chicken to try and see who swerves first?
@Miu He is not wrong, that's how licensing works. It can be very limiting creatively, especially when you have to deal with a group that is even more greedy than EA, like FIFA.
Wow they actually sound like they care about us for once, thats so sweet of.........What.....You were talking to my wallet??
@Troll_Decimator Oh I'm with EA for this matter.. just thinking about those Legacy Editions on Switch...
FIFA.. UEFA.. such corrupt and greedy organization.
Poor EA. Despite all the negative impact the FIFA license has caused them, they still managed a partnership that lasted 30 years. Must have been tough. HAHAHA. Who are they trying to kid? They just don't want to pay more for it lol.
EA isn't worried. They have a bunch more franchises they could ruin with microtransactions and ads
„ Our players want us to expand into the digital ecosystem more broadly… our fans are telling us they want us to go and participate in that space.“
You made that one up.
It's like watching two multimillionaires at a country club argue over who gets to park their Jag in the shade.
I do think EA is shooting themselves in the foot(ball) with this. FIFA is synonymous with 'football video game' and I think it's going to take a lot of time and money (!) to move people onto a new name. Even then some will stubbornly claim that EAF isn't really FIFA.
There's only really still one dominant football console game on the market (the free to play PES didn't really take off, to my knowledge), so I reckon EA will still bring in the ungodly numbers that they do if they just call it 'EA Soccer Slamdownz'.
Or 'EA Football' is good too.
What do they get for the FIFA licence? If they have 300 other licence agreements in place? Would they still have all the real clubs and players in the game?
@AlexOlney I guess they’d have a lot more spare cash to do that if they’re not spending multiple billions of dollars on the FIFA licence.
Can't wait to buy again EA Football legacy edition for Switch for full price. EA disrespect 110 million Switch owners
Makes me think EA will be acquired (probably by Microsoft). A lot of their recent non-sports games have been trainwrecks like Battlefield 2042 and I do think sales of the first EA football game without the FIFA branding will be worse than FIFA games.
@AlexOlney No doubt. The reality is that EA's FIFA game is largely bought as official merchandise primarily by football fans first, not gamers
That's why it's has a massive edge over PES. The majority of players for these football games are going to want the authentic game with the official players and team line ups.
As soon as EA can't use the FIFA license and another company makes a FIFA game. The majority of players are going to migrate to the game with the licenses.
This is the very definition of hubris, on both their parts. I have no skin in this game but I do hope it falls apart for both of them, might knock them down a peg or two.
If EA think a football game without all the FIFA licensed teams will still fly, I have a bridge to sell them. They completely underestimate how important football is in many cultures and the tribalism of whichever team someone supports is part and parcel with that.
FIFA is also being ridiculous here to be sure, taking the license away would result in an inferior product being produced by whoever does stump up the cash because they haven't got the engine EA has perfected for decades... but I can't say it would be a bad thing to have a shakeup in the football game world, perhaps Switch owners might be treated with a modicum of respect by a new developer.
@Dr_Lugae my point exactly.
"that the FIFA brand has more meaning as a video game than it does a governing body of soccer"
What a knob head, is this really how they deal with people.
And he is so wrong, look at pro evo and you tell me that license means nothing.
@AlexOlney can’t argue that.
Erm, without the FIFA brand, doesn't that mean they cant use the team names and player names?
That is going to destroy this football game, as that's the main reason people play it.
They could just call it FEAFA and it will sound the same.
Yeah. FIFA is nothing more than a brand at this point like Call of Duty.
It would suit him poorly to not appear cool with this, but let's be real. EA's football series has carried the FIFA name for thirty years.
They didn't drop Madden just because he died. They had only ONE year with Tiger Woods taking a backseat. They're not actually chill with losing the FIFA name.
He doesn't really think it's just the four letters on the box, that's absurd. For one thing if they lose the FIFA license that means someone else will have it so they will have another football game to compete with.
Sounds like NFTs...
Ugh
"What we get from FIFA... are the four letters on the front of the box." I may not like EA as much as next person, but that's actually a really good one-liner not gonna lie.
EA blaming FIFA for copy pasting their game every single year... They have a lot of guts saying BS like this.
@Bunkerneath
The FIFA license has nothing to do with player likeness and club licenses.
FIFA license brings the official world cup license and that's every 4 years. It's not worth the money they are asking.
@chardir nobody else is going to pay what FIFA currently want for the license.
@dew12333 he has a fair point though in regards to the FIFA brand.
Also you are confused about what the FIFA license brings. It has nothing to do with clubs, national leagues and player likeness. Pro evo could have the FIFA license and it would wouldn't change a thing in regards to club licenses.
Do you not remember when pro evo had the UEFA license and they still didn't even have all the correct clubs which were in the champions League, Europea league.
Something tells that this statement will come back to bite him when sales go down.
The end of the EA x FIFA partnership is not going to be good for neither of them, thankfully it ended.
@victordamazio
I guarantee any loss in sales won't hit anywhere near the $1billion FIFA wants every 4 years.
Nobody else is swooping in to get one over EA as it's way overpriced by FIFA.
When PES originally came along and played better than fifa of the time, it didn't take long for a lot of us to switch, despite them not being officially licensed to more than a handful of clubs. I wouldn't over estimate fifa's brand power, or anyone's true loyalty to it. We only go to them now for lack of a superior competitor.
I had a little blast on FIFA 20 last night and enjoyed it, but I'm gone in a heartbeat if something better comes along.
@Silly_G
What would you rather have on the Switch? A reskinned football/soccer game that happens to retain the same engine from previous installments all in one Game Card, or a fully-ported basketball game that lines up with other platforms that require an extra download?
"Our players want us to expand into the digital ecosystem more broadly…"
Did he just try and say players said they want more NFTs?
@Pod "Chill" means they have come to terms with it. Of course they would prefer not to lose it, if they could have a more beneficial deal. Losing the FIFA name is definitely going to have a short term impact, and from that short term impact there might be a chance (or opportunity, seeing it from competitor perspective) for long term impact too.
@CactusMan I don't think the acquisition of the fifa license automatically gives anyone the superior product. Just the official product.
@ModdedInkling What exactly are you trying to say with that fake dilemma? As if the cartridge size is the problem for those games not getting ported.
@Troll_Decimator NBA 2K did get ported to Switch but since its the full game and content wise, the same as Xbox One and PS4, it needed to have an additional download.
The FIFA legacy editions are pure garbage. The NBA 2K games are much better on Switch.
@kobashi100 Sorry I have to disagree, I think he is wrong, people buy fifa, they do not buy EA soccer. A large part of their sales come from people who know very little about the games industry and that name is what sells it to them.
When I was younger and regularly bought football games I used to buy Pro Evo, this was because it was a better game than fifa then. Fifa still existed and that was largely on people that bought because of the license and the fact they didn't know pro evo was better. A few years later EA started to make the game far more like pro evo and overall improved the game. Then they became kings because they had the license and the better game.
This is will greatly effect their share of the football game sales and they will have to be very careful how they market the next game.
@anoyonmus Yeah, I'm just saying the required space has little to no bearing for whether the game gets ported or not, just as you said, NBA got ported and it requires a download. The reason they didn't port FIFA is because they simply don't have the modern iteration of the game/engine ported to Switch, and porting it would be a lot of work, to the point where they feel the extra sales wouldn't be worth the investment.
@dew12333 never said sales maybe lower. I argued they won't lose 1 billion every 4 years.
Also just for the record. FIFA never got close to pro evo GamePlay. Thirdly which football game are these casual players gonna buy instead?
@Troll_Decimator
@anonymous pretty much just answered that question. NBA 2K games are directly ported from their other console counterparts, whereas FIFA games are using an older engine.
They won't be so chill when they lose all that lovely money!
@kobashi100 The game that does buy the fifa license.
Meh we had Mario Strikers: Battle League already so good riddance. The only people that are affect by this are the European crowd who can't get enough of the brand.
@ModdedInkling Yes, but it's a bit of a false dichotomy to say that you can either have the old version reskin or a new version that has a mandatory download because that isn't the problem.
@Troll_Decimator
There will be an immediate, irreparable impact.
How big? Hard to say. But a long term impact guaranteed. And as you say, on the short term it might be even more brutal.
@Pod Why would it be irreparable? They can certainly repair it with time.
@Troll_Decimator
You do realize that my comments stem from someone else's comment, right? I don't HAVE to strictly follow the article's topic.
@dew12333 wait so you think it's that simple to just build a football game from scratch, plaster FIFA on the cover and we have a huge seller.
Dunno what planet you are living on but publishers are not hiring developers to create a new football game.
Also have you totally ignored that FIFA want $1b for the license. Which publisher do you see right now who is willing to pay that huge amount?
@Troll_Decimator
You could very well be right, but I'm not so sure right now.
Even if they achieve similar success with a brand name of their own, the effort will have cost them a lot of money, and they still wouldn't be where they could have moved on to, if the franchise still carried the FIFA namesake.
I'm all for FIFA getting shafted. Publicly even. Bunch of currupt bullies. But having to rebuild a brand awareness that strong is no joke in video games, and many have failed.
FIFA: "FIFA claims that the cost should go up as the revenue EA generates from the licence has scaled dramatically as microtransactions have become more popular."
EA: "Our players want us to expand into the digital ecosystem more broadly… our fans are telling us they want us to go and participate in that space."
So, in other words, both companies agree, but EA just does not want to pay.
If by "more popular" and "player demand" more than 1 person asked, then yes, they are popular.
In reality, microtransactions often lead to gamers boycotting the game, so no, they are not popular.
Just like both companies are in agreement, both companies are wrong.
The idea that soccer fans are going to buy an EA Soccer game with no real pro players is crazy.
I am going through the same thing with MLB on Switch, but I never buy any of the Backyard Baseball knockoff games either.
But making a development company pay $250 million JUST FOR THE NAME/PLAYERS is crazy!
My guess is despite how much FIFA apparently bosses EA around with how the game is made and their demanded ransom, they probably contribute $0 to game development.
Why would anyone agree to that?
@kobashi100 I live on earth, and I don't think Konami would need to employ anybody. And that is the price to EA due to amount of money they make, I would suggest the worth would be different elsewhere. But any money for doing very little is probably fine by fifa, unless someone is raking in and you feel like taking some of it for yourself. They are both greedy b*****ds!
I do respect your opinion but I just don't agree so shall we just agree to disagree.
@Pod Yeah I totally agree with you there, say what you will about EA, but in the end they are a company, they are not pretending to be the authority in anything and working for the good of the people like FIFA does, while shafting everything for the sake of money. Bunch of corrupt and under the table deal scum is all they are.
Also, I'm curious as to what impact this could have for FIFA themselves, as well as football in general, this is a lot of money that EA gives and some of it trickles down to underdeveloped countries to improve their infrastructure and such. Unless FIFA gets this money from elsewhere, this could do a lot of harm to football worldwide.
@Troll_Decimator
I actually have no clue how much money EA threw at FIFA every year to carry the name. But it's unlikely to be an insignificant amount, as you say!
"... microtransactions have become more popular." Microtransactions have become more prevalent. Popular is a different concept.
@Pod It's in the area of hundred(s) of millions per year afaik.
Thinking that people will buy a soccer game with no soccer players is like thinking the same audience that loves The Show, but hates Mario games, would buy Mario Super Sluggers.
I love Mario games AND baseball, so that game is perfect for me, but the absence of a good MLB game on Nintendo systems will not make someone who hates Mario games buy Mario Super Sluggers and the same is true here.
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