According to The Verge, citing an internal letter leaked to the media, Electronic Arts (EA) CEO Andrew Wilson explained why the company is considering terminating its licensing agreement with FIFA. The comments came in October following EA's announcement of a renegotiation of its agreement with FIFA. The gaming company is considering renaming options for its popular football franchise.
The CEO's remarks were made at a company meeting last November and made public in a VGC report this week. Wilson suggested that EA sees its FIFA branding deal as unnecessarily restrictive for the gaming company. And while the FIFA deal gives EA access to the World Cup every four years, the company has more than 300 other licensing agreements that allow it to use the names and likenesses of players, teams and leagues without having to make a deal. Wilson believes that the agreement with the international football federation imposes restrictions on EA.
The company is struggling to create game modes outside of 11v11 matches, partner with other non-FIFA brands, and "expand broadly into digital ecosystems around football," Wilson said. Last year, The New York Times (NYT) reported on EA's struggle with FIFA to expand into other areas, such as showcasing real-life game highlights and trading in digital goods (such as NFTs). At the same time, Wilson said at the last report on financial results that EA has no plans for NFT technology.
Andrew Wilson, Head of EA "FIFA is just a name on a box, but they have taken away our ability to expand in areas that players want."
Apparently, EA is actively thinking about surprise mechanics for players suffering from gambling addiction. At the same time, the British Parliament has already become interested in the casino elements in the football game from EA.
The NYT previously reported that the value of the deal is also a key factor in EA and FIFA negotiations. The main football organization wants to double the amount it receives from game developers, as a result of which the deal could exceed $ 1 billion in four years. But the CEO of EA wants to reduce the amount, and this is most likely the reason why he may abandon the brand of the football federation. Wilson says the company doesn't want to pay more than the license costs.
According to the NYT, the current ten-year deal between EA and FIFA will expire after the World Cup in Qatar, which will be held from November 21 to December 18. EA has not officially announced what it will name its football games if it loses the rights to the FIFA name. But in October, Electronic Arts trademarked EA Sports FC in the UK and the EU.
bbabo.Net