Analysts Weigh in on Madden's Mega Licensing Fees

February 5, 2009 -

Yesterday, GamePolitics broke the news that Madden publisher Electronic Arts paid the National Football League Players Association more than $35 million in licensing fees during 2007.

We asked a couple of financial gurus to comment on the eye-popping figure, which is buried within a massive document filed by the NFLPA with the U.S. Department of Labor.

Wedbush-Morgan financial analyst Michael Pachter told GP:

The [Madden licensing] deal is likely a guarantee of around $50 million total, and $35 million [going] to the players makes sense. The old deal was around $15 million per year, and I know that it went up substantially when renewed in 2005.
 
[EA sells] around 5.5 million copies a year, so they're burdened with [about] $9/unit in licensing. That's reasonable, on par with the royalty paid to the console manufacturers.

So, Mike, yesterday GP speculated that the league would get at least as much as the NFLPA from EA. Are you saying we were wrong and that the NFLPA actually gets more than the NFL?

Most definitely.

 

The product is the players, and the league used to get most of the money. The reason the royalty went up was the players, not the league. The league looks at the game as a marketing tool, but the players want to be paid for their likenesses.

Meanwhile, analyst Doug Creutz of Cowen and Company termed the $35 million paid by EA to the NFLPA "a gigantic number," adding:

I’d estimate Madden generates $350-400 million in revenue for EA annually.

 


Comments

Re: Analysts Weigh in on Madden's Mega Licensing Fees

Those fees are insanely high.. i dont see how they make it

 

Cookie Stuffing Guide

Re: Analysts Weigh in on Madden's Mega Licensing Fees

Because of the ban on other games on using player likenesses and names, EA has a virtual monopoly on football games.  I like Madden Football, but I'd like to have the choice between competing game designs.  Lack of competition is not good for anyone - it encourages the sort of stagnation that we've seen in EA's sports line-up in the last few years.

Re: Analysts Weigh in on Madden's Mega Licensing Fees

Of course Madden makes that much. What other NFL choice do people have? None, because of these assholes at EA and their exclusive deal!

When Jack Thompson runs his mouth, does anyone really care what he has to say anymore?

Re: Analysts Weigh in on Madden's Mega Licensing Fees

I don't think giving approximately 10% of revenues from Madden to licensing is too big of a chunk for EA to pay.  

www.20sidedwoman.blogspot.com

Re: Analysts Weigh in on Madden's Mega Licensing Fees

Keep at it, take down Madden.  I am sick of that carbon copy game.

Nido Web Flash Tutorials AS2 and AS3 Tutorials for anyone interested.
How to set Xbox 360 Parental Controls

Nido Web Flash Tutorials AS2 and AS3 Tutorials for anyone interested.
How to set Xbox 360 Parental Controls

Re: Analysts Weigh in on Madden's Mega Licensing Fees

Then don't play it? Why are you trying to encurage the prevention of people who ligitimatly like playing the game?

Re: Analysts Weigh in on Madden's Mega Licensing Fees

If they lose the deal, the NFL will likely take some time signing another exclusive deal if they ever do.  I want more developers making NFL games, because I actually enjoyed the fact of developers competing to make a good game every year instead of EA only owning it and doing a roster update.

Nido Web Flash Tutorials AS2 and AS3 Tutorials for anyone interested.
How to set Xbox 360 Parental Controls

Nido Web Flash Tutorials AS2 and AS3 Tutorials for anyone interested.
How to set Xbox 360 Parental Controls

Re: Analysts Weigh in on Madden's Mega Licensing Fees

But there are people who ligitimatly like Madden (crazy I know!). Why do you want to encurage the death of madden, and as a result people who like the game can no longer play it anymore?

Re: Analysts Weigh in on Madden's Mega Licensing Fees

They won't be losing anything, they will always have the last copy EA made, they just have to make the roster update themselves with the create a player. (or with the last version that has that)

Maybe another company will make football games those people like too, but the majority of Madden fans from years past are sick of this recycling of the game.

Nido Web Flash Tutorials AS2 and AS3 Tutorials for anyone interested.
How to set Xbox 360 Parental Controls

Nido Web Flash Tutorials AS2 and AS3 Tutorials for anyone interested.
How to set Xbox 360 Parental Controls

Re: Analysts Weigh in on Madden's Mega Licensing Fees

Madden is the Tony Hawk Pro Skater of football games. People want NFL, there is only one choice. That doesn't mean it was good by any means. I played THPS because I enjoy skateboarding.. not because I like Tony Hawk. Now that I have an option to choose a different game (skate), I certainly will.

Backbreaker looked to be a Madden killer if the NFL would allow the license. But the shitty players in the league demand too much for their likenesses. Horrible role models.

Re: Analysts Weigh in on Madden's Mega Licensing Fees

True, but that's because NFL is an actual license. If people want American football, you can go somewhere else for that. Are you the same person who complains about the fact that Activision is the only company that can make spider-man games?

Re: Analysts Weigh in on Madden's Mega Licensing Fees

"Backbreaker looked to be a Madden killer if the NFL would allow the license. But the shitty players in the league demand too much for their likenesses. Horrible role models."

 

Yes....how dare they ask to be fairly compensated for using their likenesses....

 

It wasn't the players.  The League gave EA sole video game rights.  That means no NFL video games that isn't Madden.  You wanna blame anybody, blame EA for asking for such protection.

 

 

"You know what I wish? I wish all the scum of the Earth had one throat and I had my hands about it."

"You know what I wish? I wish all the scum of the Earth had one throat and I had my hands about it."
 
Forgot your password?
Username :
Password :

Poll

Which group is more ethically challenged?:

Shout box

You're not permitted to post shouts.
Andrew EisenThat was quick! Pretty accurate cosplay of the new Ghostbuster uniform and proton pack: https://twitter.com/mirabellemusing/status/61673135125394227207/03/2015 - 6:23pm
Matthew Wilson@mast I dont know, but I do know it got a cult fallowing here.07/03/2015 - 6:22pm
MastermuneWasn't the Zero Escape series more popular here than in Japan?07/03/2015 - 6:19pm
Matthew Wilson@mast given the game was revealed in the US, I wouldnt be shocked if it was released at the same time.07/03/2015 - 6:15pm
MastermuneI don't trust the big AAA worldwide simultaneous releases though.07/03/2015 - 5:57pm
Mastermune@Infophile I have come to the conclusion that smaller games like zero escape, JRPG's and the like are actually worth preordering sinc they are limited quantities and since they usually release in japan first we know if there are any issues.07/03/2015 - 5:56pm
Infophile@Matthew! Awesome news. I'd preorder on that shout alone if I didn't have a policy against preordering anymore.07/03/2015 - 5:16pm
Matthew Wilsonzero escape 3 was announced today.07/03/2015 - 4:21pm
Matthew Wilson@pnx I am guessing a ddoss since that is what happened to neogaf, but sony needs to do a investment in psn as a whole. steam is still the most reliable and fastest digital platform I use.07/03/2015 - 3:06pm
PHX Corphttp://www.vg247.com/2015/07/03/psn-is-down-sony-investigating/ not again: PSN is down, Sony investigating07/03/2015 - 3:04pm
Matthew Wilsonhttp://www.vg247.com/2015/07/03/digital-extremes-trespasser-keystone-pc/ if true, this is funny and embarrassing for Digital Extremes. companies need too have better security.07/03/2015 - 2:57pm
Matthew Wilsonhttp://www.gamespot.com/videos/the-point-destiny-the-hardcore-gamers-slot-machine/2300-6425852/ this is very good, and well researched.07/03/2015 - 12:41pm
InfophileOther features to become standard: The ability to remap controls however the hell I want. Quicksave at any time (especially for handheld and mobile games). Plus everything Andrew said07/03/2015 - 10:43am
InfophileRegion-freeing becomes tricky for games with a strong online component though, especially when the servers are run by different branches in different regions.07/03/2015 - 10:41am
InfophileI'm in favor of getting rid of region-locking for any purchased games. I can understand an exception for free, ad-supported games, as many ads are only relevant in certain regions, and it's a ridiculous hassle to get ads for all regions.07/03/2015 - 10:40am
PHX Corphttp://kotaku.com/payday-2-has-been-broken-on-xbox-one-for-three-weeks-1715384186 Payday 2 Has Been Broken On Xbox One For Three Weeks07/03/2015 - 8:44am
Matthew Wilsonhttps://www.reddit.com/r/OutOfTheLoop/comments/3bxduw/why_was_riama_along_with_a_number_of_other_large/ here is a more complete acount of whats going on.07/03/2015 - 1:32am
Matthew Wilsonredit is on fire right now. most subreddits have been set to private.07/03/2015 - 1:24am
MattsworknameYou know andrew, those are actualy rock solid ideas, I woudl like those features a bunch ,especially with games that a cut scene heavly. looking at you kojima!07/03/2015 - 1:18am
Andrew EisenActually, "things I'd like to see become standard in video games" ain't a bad idea for one of my future YouTube videos.07/03/2015 - 1:05am
 

Be Heard - Contact Your Politician