EA and Arena Football League enter into exclusive agreement
by Three Storms
January 10, 2005
EA to Produce AFL Videogame for 2006 AFL Season
NEW YORK Jan. 10, 2005 -The Arena Football League and Electronic Arts (Nasdaq:ERTS) have entered into an exclusive agreement to produce an AFL video game in time for the start of the 2006 AFL season that also allows EA to share in the proceeds of future expansion team sales. Terms of the deal were not disclosed.
"Once again, we are partnering with an industry leader who believes in the AFL philosophy and its growth potential. To the extent that EA helps grow the AFL, they participate in that growth through the increased value of future expansion teams," said Commissioner David Baker. "EA is the videogame industry's gold standard. Arguably, nothing is more important to reach the younger male demographic that we are so strong in than video games. For our core fan, this is akin to a network-television agreement."
Over the next four years and beginning with the 2005 AFL season, EA will partner with the AFL on media and retail marketing, and produce AFL games, the first to be available to consumers at the start of the 2006 AFL season.
"We believe that the business model the AFL has created will provide for a new football experience for videogame fans, and provide EA with an incentive to partner with the AFL to expand the league," said Larry Probst, Chairman and CEO of EA. "The AFL is a unique brand of football and we intend to deliver a unique football gaming experience from any the industry has seen before. We're pleased to be working with the league during this exciting growth-period for the AFL."
The partnership is a perfect match when considering customer demographics of both the AFL and EA. According to the ESPN Sports Poll, the AFL indexes at 186 for ages 12-17 and 127 for ages 18-24. Approximately 46 percent of all 12-17 year olds are fans of the AFL.
This is the first of four sponsor-related partnerships approved by the AFL Board of Directors and is an extension of the industry-changing equity agreement the AFL has with NBC Sports, in which NBC receives a percentage of the increase in AFL team values.
EA joins a growing list of industry leaders who are partnering with and/or sponsoring the AFL. The list includes: Aaron's, ADT, Champs Sports, NBC, Nike, Spalding, Upper Deck and U.S. Army.
About Electronic Arts
Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, EA posted revenues of $2.96 billion for fiscal 2004. The company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers and the Internet. In 2003, EA had 27 titles that sold more than one million copies. Electronic Arts markets its products under three brand names: EA SPORTS(TM), EA GAMES(TM) and EA SPORTS BIG(TM). EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at https://info.ea.com.
About Arena Football League
Often recognized as one of the nation's most affordable and fan-friendly sports leagues, the Arena Football League, the second-longest running football league in U.S. history, will begin its 19th season in January 2005. On the strength of its Mission Statement and Fans' Bill of Rights, the AFL is America's fastest growing sport. A network-TV sport, the AFL will celebrate its third season on NBC with a season-opening doubleheader on January 28, 2005.
Electronic Arts, EA, EA GAMES, EA SPORTS and EA SPORTS BIG are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. All other trademarks are the property of their respective owners.
Contacts
Chris McCloskey, AFL, 212/252-8118
Trudy Muller, EA, 650/628-7323
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