Electronic Arts has secured an exclusive license to the players, teams, and stadiums of the National Football League, the publisher announced today. As a consequence, EA's titles may be the only officially licensed NFL football games on the market for the five-year duration of the deal.
Terms of the deal were not disclosed. A report from the Street & Smith's Sports Business Journal in May, which suggested that an NFL exclusivity deal might be in the offing, speculated that Electronic Arts might be interested in paying as much as $1 billion for the right deal.

According to EA's announcement, the only exception to the deal covers Internet and wireless games (such as those published by THQ). Otherwise, the agreements cover "action simulation, arcade-style, and manager games on the PC, handheld game devices, and consoles -- including console online features."

"For the first time," EA's announcement states, "all aspects of the interactive experience -- including console-based fantasy football features and handheld game devices -- will be fully integrated within one EA game," suggesting that players of EA's console simulations will be able to enjoy handheld connectivity and fantasy football features when the next season rolls around.

"The five-year agreements will usher NFL fans through the console technology transition with new ideas and innovative game play experiences," said EA CEO Larry Probst.

In addition, Probst told Reuters news service that EA plans to use the deal to expand beyond the Madden and Street franchises. "You can imagine that there will be additional products in different genres than the pure simulation game and the arcade genre," he said.

Finding itself locked out of the vital license to the NFL players, teams, and stadiums could be a fatal blow to Visual Concepts' resurgent ESPN-licensed football titles, which gained significant ground in market share this season on the strength of their $19.99 price point.

The move to undercut EA's pricing, part of a new co-publishing campaign undertaken by Sega and Take-Two interactive, boosted unit sales of ESPN NFL 2K5 by several times in comparison to last year's Visual Concepts football game, and pushed EA to drop the price of Madden NFL 2005 in response.

Take-Two slammed the exclusivity deal in a statement released shortly after EA's announcement today. "We believe that the decisions of the National Football League and Players Inc. to grant an exclusive license for videogames do a tremendous disservice to the consumers and sports fans, whose funds ultimately support the NFL, by limiting their choices, curbing creativity, and almost certainly leading to higher game prices," it said.

However, Take-Two also downplayed the deal's impact on its business: "While sports games in general are an important part of Take-Two's product diversification strategy, the licensed NFL game we distributed on behalf of Sega this year was not a material contributor to our profitability to date, nor was it expected to be a meaningful contributor in the upcoming year.?? We remain committed to continued diversification of our product portfolio, including sports."

EA has picked up exclusive licenses to other sports leagues before -- the NASCAR stock-car racing circuit, the PGA Tour -- but never at such direct expense to a competitor.

In theory, Sega could sub-license the NFL properties from EA for its games, but it's not clear whether either party would be interested in brokering such a deal. Legal action once forced Konami to sub-license a sports property to its competitors, when it secured an exclusive license to the Japanese professional baseball league in 1999, but for obvious reasons, that precedent doesn't necessarily apply.

Source: 1up.com

As you may be able to tell from my signature ... I'm a bigger fan of the ESPN franchise than EA Sports. Football especially ...

This, in fact, is a dark day for football gamers like myself.

Doesn't this fall under the "Robber-Barron" law? This could be a monopoly suit if played right -- couldn't it!?

I have to admit, I am not a big sports gamer (PC or PS2), I am more of a role player, 1st person shooter (games like FFX, FFX-2, Medal of Honor - Frontline etc. etc.). But have to question the reason (aside from the money) behind this move by EA.

I know that the game mentioned above (Medal of Honor - Frontline) is in fact an EA game. However, I have to side with the general population of ADULT GAMERS, the prices are starting to get very unreasonable for what we get in a game. For instance, It took me only 4 days of average playing -- 3 - 4 hours of play time to get through Medal of Honor, and I paid $50.00 for the game. I love the game, but only wish that there had bit alot more to it! More levels, side-quests etc., etc.

Looks like Sega is gonna get the shaft again, they got it when they came out with the Sega Saturn, look what happened there. They got it again with the Dreamcast -- some really cool games, just not enough of them. Now this!

What do we do!?

The only things us gamers CAN do ... boycott EA with our wallets! They will NOT get a single red cent from me, that's for sure!

Unfortunetly EA can NOT be taken to court on this because they are still leaving the door open to other
developers. They can make a football, game, just can't include the real names, logo, etc.

... or if they want to have that stuff, they will have to pay what ever fee EA comes up with to use them.

Next up for EA?

The NBA Franchise ... which again, is mostly dominated by Sega's Take Two Interactive / ESPN Franchise.

Un-be-freekin'-leave-able

have to agree with you there wash!

I actually won't buy any Electronics Arts games at all. I think they come under the really evil corporation section and treat their staff terribly and I think the NFL just sold their soul.

Can't say that I agree 100% there horai, okay...99.999999% You have to admit they put out some really nice games though.

100% right on the NFL selling their soul though!!

Ok, it just gets worse and worse!

EA has officially cornered the Arena Football League / Stadiums / Names / etc.

EA has now convinced ESPN to sign with them for future football titles. ESPN really didn't have a choice here, they had to go where the money would be. Unfortunetly with EA cornering the NFL market, ESPN had to jump ship.

Visual Concepts / Black Box / Sega has cornered the MLB license! Only allowing 1st Party companies to make future baseball titles -- obviously EA is a 3rd Party, hence they have been removed from the picture. Sony / Microsoft / & Nintendo are the only other companies allowed to make a baseball game. Keep in mind Microsoft also owns the "High Heat" franchise.

What's next?? Of course the NBA is in both Sega's and EA's sights -- the question is. Will the NBA actually commit to a certain company or "Just Say NO"!

Whatever the case may be -- sports gaming will never be the same, the consumer here will be the ones to suffer while companies like EA and Sega do nothing but "pad their pockets".

Truely some rough roads ahead for sports gaming.

all this licensing crap sucks. But hey, as long as I get Madden and NBA Live 06, i'm set. Already got Madden, next is NBA Live. I may also get NFL Blitz for the heck of it...

Well first of all everyone should be in love with madden(the game not the real John Madden) second you guys don't need to criticize EA they know what they are are doing with the NFL liscense( I am a Die-hard fan of football and always will be) but AFL is a mistrake just like the nintendo gamecube. EA does need to focus on Command and Conquer games, Like generals Zero Hour. Well that is all i have to say and for people who dislike madden NFL 2006