The NCAA said in their statement:
?The NCAA has made the decision not to enter a new contract for the license of its name and logo for the EA Sports NCAA Football video game. The current contract expires in June 2014, but our timing is based on the need to provide EA notice for future planning. As a result, the NCAA Football 2014 video game will be the last to include the NCAA?s name and logo. We are confident in our legal position regarding the use of our trademarks in video games. But given the current business climate and costs of litigation, we determined participating in this game is not in the best interests of the NCAA.
EA has recently been sued by former college athletes for using their likeness and names and not being paid for it. In the United States, college athletes are not allowed to earn any money from endorsements, autographs, boosters, or any other source of income outside of an ordinary job. College athletes have even been suspended for accepting such gifts as free sports jerseys. But EA has refused to pay even former college athletes who are no longer relegated to those rules. All the while EA Sports has been able to make profits from these athletes hard work and training. Even more so when you consider the fact that EA had exclusive game licensing rights to NCAA sports titles.
This move by the NCAA should open the market up for more competitive and better priced games. We could also see sports titles on the Wii U by other publishers that EA formerly refused to make for the console.
Sports Illustrated?s Michael McCann summarizes the suit, writing:
?First, by requiring student-athletes to forgo their identity rights in perpetuity, the NCAA has allegedly restrained trade in violation of the Sherman Act, a core source of federal antitrust law. Here?s why: student-athletes, but for their authorization of the NCAA to license their images and likenesses, would be able to negotiate their own licensing deals after leaving college. If they could do so, more licenses would be sold, which would theoretically produce a more competitive market for those licenses. A more competitive market normally means more choices and better prices for consumers. For example, if former student-athletes could negotiate their own licensing deals, multiple video game publishers could publish games featuring ex-players. More games could enhance technological innovation and lower prices for video game consumers."
The market shows that EA shares have dipped on the news. The loss of a major franchise is bad news for the EA Sports division, though the company plans to release future college sports games without the NCAA brand.
The next best thing that could happen would be the NFL also dropping their exclusive licensing agreement with EA Sports and their 'Madden NFL' title. It's a long shot, but let's keep our fingers crossed.
Source...
http://www.forbes.com/sites/erikkain...tract-with-ea/
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Last edited by BobbyBangin; 1 Hour Ago at 04:47 PM.
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