(Esports news) FIFA has issued a statement after it’s negotiations with game publisher Electronic Arts (EA) reached an impasse that football gaming and esports "must involve more than one party controlling and exploiting all rights". The statement came after multiple reports claimed that there is financial disagreement between the two parties with FIFA looking for more than double the cost of its license, amounting to $1 billion for each World Cup cycle. As a result, Electronic Arts have also said that it was “exploring the idea of renaming” it’s long running FIFA game.
A statement released by FIFA said “Technology and mobile companies are now actively competing to be associated with FIFA, its platforms, and global tournaments. Consequently, FIFA is engaging with various industry players, including developers, investors and analysts, to build out a long-term view of the gaming, eSports and interactive entertainment sector. Gaming and eSports are the fastest-growing media verticals on the planet, with new and diverse types of games launching continuously.
"It is therefore of crucial importance for FIFA and its stakeholders to maximise all future opportunities for football and gaming fans…FIFA also has a duty to support its 211 member associations to fully capitalise on the inherent opportunities that have been emerging over the recent years. As part of this strategy, FIFA also commits to continuing to organise skill-based eSports tournaments under the umbrella of the recently launched FIFAe competition structure and consumer brand."
The partnership between FIFA and Electronic Arts has been one of the longest and most profitable in the sports industry. Over the past two decades, sales have surpassed $20 billion USD and FIFA’s licensing agreement is the most valuable commercial agreement at the organization, valued at about $150 million. The current 10 year agreement is set to end after the 2022 World Cup in Qatar. The negotiations have not stalled purely for financial reasons as FIFA would prefer limiting EA’s exclusivity to the video game itself while the California based game publisher is looking to explore other ventures within it’s video game ecosystem which would include highlights of actual games, arena video game tournaments and digital products like non-fungible tokens.
With all things considered, Electronic Arts won’t be too worried about losing their licensing agreement with FIFA as they have unrivalled market dominance in the football gaming industry, largely due to 300 other similar licensing agreements with the likes of UEFA and FIFPro. Earlier this month, the company registered two trademarks, one in the European Union and the other in Britain for the phrase ‘EA Sports FC’ as they prepare for life after the expiration of the current agreement.
