Electronic Arts Inc (NASDAQ:EA) and NCAA not friends any longer

Posted by Chris Bell July 22, 2013 0 Comment 1111 views

Video gaming fans may never have expected this one coming. The NCAA Football 2014 may well be a collector’s edition. Last week, the NCAA said that starting 2014, they will no longer permit Electronic Arts Inc (NASDAQ:EA) to use their logo.  This business deal was a very lucrative deal for both the companies. However, the NCAA is fighting a very high-profile lawsuit. The case says that  billions of dollars are owed to former players, by the governing body and that their likenesses had been used for free.

They have said that no new contract will be sought with Electronic Arts Inc (NASDAQ:EA). The latter is the manufacturer of the extremely popular game and the current contract will be expiring in June 2014.

The unstoppable game company

In no way is this development stopping EA from launching a college football-based video game that depicts muscle-puller schools like Ohio State, Alabama and Oregon. EA’s executive vice president, Andrew Wilson said that the company will discontinue using the NCAA marks and names, but will continue developing and publishing various college football games. He said that the company has a very solid relationship with the existing Collegiate Licensing Co and that a new game for its next-generation consoles is in the pipeline. This game is slated for a 2014 launch and it will feature these college teams.

The innovation game

The innovation and conferences that EA Sports fans expect will all remain solidly in place, said Wilson. In its last financial year EA reported a net revenue of $3.8B, excluding its NCAA football franchise. The company is well known for its FIFA Soccer, Madden NFL and several other games. Wilson went on to say that though the brand itself is god to have, it’s really more about the sports characters.

At the moment, there is not too much clarity about how much of what Electronic Arts Inc (NASDAQ:EA) makes from NCAA football, actually goes back to the latter and all its members, in licensing deals

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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