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

Whose next half decade of superhero films are you most looking forward to?:

Shout box

You're not permitted to post shouts.
ZippyDSMleeConster:Some PSP games are 10-20$, you can buy a few then rip them yourself or find an ISO. The emu is PPSSPP.I'm I the only one that hates crisis core?10/31/2014 - 11:28am
ConsterZippy: uh, thanks? Don't know any PSP games, though.10/31/2014 - 10:10am
ZippyDSMleehttp://arstechnica.com/business/2014/10/fcc-reportedly-close-to-reclassifying-isps-as-common-carriers/10/31/2014 - 9:44am
ZippyDSMleesomewhat ammuseing, http://www.ultimate-guitar.com/news/general_music_news/metallica_ask_fans_for_help_with_two_new_reissues.html10/31/2014 - 9:25am
Neo_DrKefkaAnyone remember that portrait from Resident Evil 1 in the gallery about a Middle Aged man full of worries? Anyone know the name of that portrait?10/31/2014 - 12:45am
MechaTama31Yeah, don't see myself getting a Vita or a PSTV...10/31/2014 - 12:04am
E. Zachary KnightWatch Ultron ruin all your Disney childhood memories in this How The Ultron Teaser Should Have Ended. https://www.youtube.com/watch?v=ra1sBRLRFtc10/30/2014 - 9:23pm
ZippyDSMleeConster:they finally made a working worth while PSP emulator.10/30/2014 - 8:10pm
quiknkoldMechatama31, you can get VC2 on the Vita and Vita TV. you have to buy it through PSN on PS3 and transfer it to vita and then playstation tv. I have it on my PS TV and it works10/30/2014 - 7:15pm
MechaTama31I loved Valkyria Chronicles. Still super cheesed off that the sequels were PSP-only... :/10/30/2014 - 6:57pm
ConsterI played Steamworld Dig on the 3DS, and it's pretty fun.10/30/2014 - 6:51pm
Matthew WilsonRECOMMENDED: OS: Windows 7 Processor: Intel Core2 Duo @ 2.8GHz (or equivalent) Memory: 3 GB RAM Graphics: NVIDIA GeForce GTX 280 (or equivalent) Hard Drive: 25 GB available space10/30/2014 - 5:49pm
Matthew Wilsonhere hare the system requirements. make of ithem what you will. MINIMUM: OS: Windows Vista/Windows 7 Processor: Intel Core2 Duo @ 2.0GHz (or equivalent) Memory: 2 GB RAM Graphics: NVIDIA GeForce GTS 240 (or equivalent) Hard Drive: 25 GB available spa10/30/2014 - 5:48pm
Andrew EisenStill a game I really want to play. Hope it's a solid port.10/30/2014 - 5:42pm
Matthew WilsonValkyria Chronicles pc port needs 25ggb. not bad exept this game came out in 08 on the ps3.10/30/2014 - 4:56pm
james_fudgeEZK: my sarcasm senses are tingling ;)10/30/2014 - 4:21pm
Andrew EisenIf it's any consolation, Xbox owners, Wii U owners don't get the game at all. And if we did, we'd probably never get the DLC.10/30/2014 - 4:19pm
MaskedPixelantehttp://kotaku.com/destinys-new-dlc-kinda-screws-over-xbox-players-1652294153 Sucks when the shoe's on the other foot, huh.10/30/2014 - 4:12pm
E. Zachary KnightSo a vocational school in Oklahoma is being evacuated because someone found a briefcase in the bathroom. Imagine that. A briefcase ina school. That's unpossible.10/30/2014 - 3:33pm
prh99Also, Nintendo wants to watch you sleep..for Science! (*in best Cave Johnson voice) http://arstechnica.com/gaming/2014/10/nintendo-wants-to-watch-you-sleep-for-science/10/30/2014 - 2:47pm
 

Be Heard - Contact Your Politician