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NYT reported soccer governing body was seeking $300 million annually as revenue
Electronic Arts (NASDAQ: EA) on Tuesday indicated that it is ending a nearly three-decade partnership with the international soccer governing body FIFA by pulling the plug on one of the world’s most successful videogame franchises.
The current contract, which was set to end after this year’s Qatar World Cup, has been adjusted to run through to the Women’s World Cup next summer.
EA said it will launch a rebranded version of the game, EA Sports FC, in 2023 with more than 300 licensing partners, including the Premier League, La Liga, and the UEFA.
New York Times reported that months of tense negotiations between the game developer and FIFA ended without an agreement to extend the partnership.
The soccer body was seeking at least double the $150 million it gets annually from EA Sports, its largest commercial partner, the news report said.
Moreover, EA was pushing to expand the FIFA brand into new areas such as NFTs and highlights of actual sporting events within its videogame, which has generated more than $20 billion in sales over the past two decades.
After the rebranding, the videogame itself will not change much, as the licensing deals will help the game developer to retain most of the world’s famous clubs and stars with their teams and leagues, even though the World Cup and other FIFA-controlled events will no longer be included, the NYT reported.
Picture Credit: TMZ
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