Los Angeles – The National Football League (NFL) has
restructured its deal with "Madden NFL" video game publisher
Electronic Arts (NASD: ERTS), extending their relationship a year beyond 2012 and
"significantly" reducing EA’s obligations, Sports Business Daily
reported.
The move comes as the NFL and players’ union approach a March 4
expiration date for their contract, which could jeopardize the 2011-12 NFL season.
It’s unclear how much less EA will have to pay NFL for the rights to use its
league and team logos and names under the restructured deal; EA also separately
pays the NFL Players Association for rights to players’ likenesses.
The NFLPA derives $30 million to $40 million annually from EA, Sports Business Daily
noted, citing Labor Department filings.
"For one of our core partners in a
difficult environment, we say let’s look at this, and maybe it makes some sense
to extend something out longer and give our partner some relief in the short
term but gain something on the back end," Wayne Weaver, Jacksonville
Jaguars owner and chair of the NFL’s business ventures committee, told Sports
Business Daily.
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(Sports Business Daily)
