Will the NCAA Doom EA’s College Football Series?
Despite the major blow to EA Sports, a division of Electronic Arts (NASDAQ:EA), when the National Collegiate Athletic Association decided not to renew its contract with the sports game giant, a source told Joystiq on Friday that EA has reached a three year extension with the Collegiate Licensing Company effective July 1, 2014. The CLC, which is the entity responsible for trademark licensing and marketing services for universities, will work directly with schools or leagues to decide whether they want to be included in the popular series of sports games.
The move comes following EA’s proposed $27 million lawsuit settlement with the NCAA from July 2012. NCAA alleges that EA “violated antitrust and consumer protection laws and overcharged consumers” due to its exclusive contracts with the NFL and NCAA, while failing to compensate athletes for using their likeness in games. The NCAA then decided not to renew its contract given the mounting costs of the lawsuit.
“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… As a result, the NCAA Football 2014 video game will be the last to include the NCAA’s name and logo,” the NCAA announced on their website. “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.”