EA and NFL ink exclusive licensing deal
Five-year agreement gives EA sole rights to the NFL, including teams, players, and stadiums; deal sure to reshape sports gaming.
Electronic Arts has signed the biggest sports free-agent on the market. In a devastating blow to competitors, the software giant has signed an exclusive deal with the National Football League and the NFL Players Inc., a subsidiary of the NFL Players Association. The deal is an exclusive five-year licensing deal granting EA the sole rights to the NFL's teams, stadiums, and players.
The arrangement encompasses action simulation, arcade style, and manager games made for PCs, consoles, and handhelds, giving EA a firm hold on the football gaming market. The deal does not include titles for mobile phones or internet-based games, but does include online features of consoles. With next-generation consoles scheduled for release next holiday season, EA looks to handily dominate the professional football market for the duration of the license.
"We are excited about the opportunity to further enhance our relationship with the NFL and PLAYERS INC," said Larry Probst, Chairman and CEO of Electronic Arts. "The five-year agreements will usher NFL fans through the console technology transition with new ideas and innovative game play experiences."
EA's current roster of NFL games includes the top-selling Madden franchise and the extreme football NFL Street franchise.
The deal is obviously bad news for EA's competitors, particularly ESPN Videogames and Sega, who stole a respectable chunk of EA's Madden football market with their NFL 2K series and it's budget price tag this year of $19.99.
On trading nearly three times it usual amount, EA stock was up more than $3 today. The stock closed at $57.57, up $3.38 or 6.24 percent with 16,574,606 shares trading hands on the NASDAQ. In after hours trading, the stock at press time had jumped another $2.88 to trade at $60.45.
By Tim Surette --
GameSpot
POSTED: 12/13/04 02:53 PM PST
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