In 2021, both soccer and EA’s FIFA franchise are more popular than ever, so one might think the deal would remain in place indefinitely. But now, the most popular sports video game franchise ever might be changing its name, owing to a dispute between the two organizations over a deal that currently nets FIFA over $150 million a year.

The two parties first struck a deal in 1993 that will expire in 2022. FIFA is reportedly seeking more than double its current $150 million annual licensing fee.

FIFA’s statement, in part: “It is clear that this needs to be a space that is occupied by more than one party controlling all rights.”

On the FIFA side of things, that organization did not seem entirely comfortable with all the directions EA might take the license, and it seemed to be using that as leverage for why the price should remain high. On top of that, FIFA believes more companies being involved means it would ultimately come out on top from a money perspective.

The New York Times brings word of FIFA's new monetary demands put forth to EA. Individuals familiar with the matter told The New York Times that FIFA wants over $1 billion (roughly Rs. 7,532 crores) for every World Cup cycle — the FIFA World Cup currently takes place every four years, though FIFA has been pushing to get that down to two, seeking additional profits on that end. The next FIFA World Cup is in Qatar in late 2022, right before the license ends.

What EA gets from FIFA as part of the deal — In broad terms, EA receives exclusive usage of the FIFA name and logo as well as the World Cup tournament. EA has sold special World Cup editions of the game (2014) and added a World Cup tournament as a free update expansion pack for its 2018 game. Critically, no other video game could feature its own officially branded World Cup tournament.

The organization added that it will be in a better position to serve its 211 member associations as they take advantage of emerging opportunities in gaming and soccer.

•     The “FIFA” series is estimated to be worth more than $2 billion annually to EA.
•     Since its October 2020 release, “FIFA 21” has more than 31 million players.
•     “FIFA 22” already has 9.1 million players following its global release on Oct. 1.
•     More than 140 million people have played EA Sports titles over the last 12 months.

EA posted $1.6 billion in revenue in fiscal Q1, slightly up from $1.5 billion in the same period a year prior.

The other side of the coin centers around the $250 million that EA could pocket and throw towards a new marketing strategy. It’s a potentially dicey situation for EA. While the FIFA license does bring the World Cup, other licenses like FIFPRO, which was renewed recently, as well the English Premier League license would not be impacted. With over 300 individual licenses, can EA afford to lose the one on the box?

That came as a shock to everyone, given the name of the footballing body has become synonymous with the football video game of the same name. In fact, you could argue that “FIFA” is uttered more in the latter context than the former in many circles. EA Sports has naturally benefited from that, though it now seems to believe it can risk losing the name. After all, there's no competition for EA with Konami having buried itself in the ground with eFootball.

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