Electronic Arts Called in Defence of Retired Footballer Payments

An unnamed Electronic Arts’ executive has been asked to appear at trial (due September 22nd) covering a class-action suit from former National Football League players in the United States. The ex-players are seeking $100 million (£50m) in what they claim are unpaid licensing fees.

The retirees have filed suit against their own union (the NFL Players Association) for non-payment of various licensing fees. According to the SportBusiness Journal, "EA is by far the NFLPA’s largest licensee. In the fiscal years 2006, 2007 and 2008 the video game maker paid the sports union $33.5 million, $28.7 million and $35.1 million, respectively, according to the NFLPA’s annual reports filed with federal regulators."

EA is not stated as being at fault in this case - which is between the players and their union. However, it is being asked to depose before the court in order to clarify the contract agreements.

Ron Katz of Manatt, Phelps & Phillips appearing for the players, told US District Judge William Alsup that the NFLPA had agreed that payments would be made to his clients via a license agreement with EA, "as a way of creating leverage with the video game giant, which renewed with the NFLPA earlier this year through 2012.

“The face of the agreement covers retired players. There’s no question about it", said Katz. Not so says NFLPA attorney, Jeffrey Kessler. "Mr. Katz has completely mischaracterized the EA agreements. The EA agreements are only about active NFL players."

The EA executive apparently agrees with Mr Kessler. The case continues.

^{Source: SportsBusiness Journal}