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Almost three decades later, one of the most successful business relationships in sports has come to an end.

moon tense negotiations The deal between video game maker Electronic Arts and football’s global governing body FIFA to expand a partnership that has created a wildly unpopular game as a cultural phenomenon has come to an end without a deal.

The current deal, which will expire after this year’s World Cup in Qatar, is set to extend to the Women’s World Cup next summer. The company said that 150 million FIFA video game players will need to get used to a new name for the series once this tournament is over: EA Sports FC.

The game itself will not change much. While the World Cup itself and other FIFA-controlled events will no longer be included, many of the world-famous clubs and stars will remain playable due to separate license agreements with their teams and leagues. Still, the sequel doesn’t change the seismic nature of the rebranding.

To millions of people around the world, the letters FIFA represent not real football, but a one-word abbreviation of a video game franchise that has grown to underpin the lives of different players. Premier League professionals and ordinary fans. Even players who have nothing else to do with the sport have started to get to know the stars and teams of the sport through their digital doppelgangers.

Such wide use has created a lucrative partnership for both EA Sports and FIFA: The game has sold more than $20 billion in sales over the past two decades.

But the writing was on the wall for a split For months. While the disagreement was undoubtedly rooted in part in differing financial expectations – FIFA was after at least double the $150 million it receives annually from its largest trading partner, EA Sports – it quickly became clear that there were also different expectations of what should be included. new deal.

The more recent deal was signed 10 years ago, but the intervening years have been marked by not only massive technological change, but arguably even greater turmoil at FIFA, which nearly collapsed in the aftermath of a massive corruption scandal in 2015. FIFA’s new leader, Gianni Infantino, tried – and often fail — to unlock new revenue streams.

Wilson said that when even direct talks between Infantino and Electronic Arts CEO Andrew Wilson failed to make any progress, the parties had agreed on an amicable separation.

“Actually, it was about how we can do more for the players, more for the fans, how we can give them more ways to play, how we can bring more partners into the game, how we can break the boundaries of the traditional game. His personal relationship as the game’s engineer dates back two decades, Wilson said in a phone interview.

According to people familiar with the talks, FIFA has requested the ability to add its brand to other digital products, including other video games, in addition to doubling the license fee. This has proven to be a step too far for EA Sports, which it now needs to convince legions of loyal fans to get used to another name.

FIFA now has a chance to seek new opportunities. But copying EA’s game won’t be easy.

“If you’re disrupting a relationship that’s been around for over 20 years, there will be consequences,” said Gareth Sutcliffe, a senior analyst specializing in the video games industry at Enders Analysis. “EA will continue to use its engine: They have all the tech, they have the creative execution of an absolutely fantastic football game – and it’s really cool. But what do FIFA have? Their name. And what next?”

Part of EA Sports’ calculation to separate the foundation, FIFA, from the game that has been named after him for a generation, were the formidable hurdles any challenger would face as they tested EA’s market dominance. Thanks to his position, he gained almost complete control over the football gaming industry. More than 300 similar license agreements With organizations like UEFA, which manages the Champions League, and local leagues and competitions around the world.

These agreements allow EA to use the names and likenesses of not only players but also world-famous clubs and leading leagues and competitions in its game. The company was quick to capitalize on its connections on Tuesday; minutes after the change of direction was announced, some most of the world the biggest suits – and some smallest – It has made it clear that they are siding with EA Sports instead of FIFA.

While FIFA is looking for a new partner, many of these licenses will limit what they can do. For example, the world’s two biggest club competitions – the English Premier League and European football’s elite Champions League – will only be available to EA Sports FC players.

“EA Sports is a long-term and valued partner of the Premier League and we look forward to continuing to work together in the new era,” said Richard Masters, CEO of the Premier League, in a statement announcing EA’s departure from the league. FIFA. The statement also included comments from officials representing the governing bodies of Europe and South America, as well as the presidents of the German and Spanish leagues.

Perhaps pointing to potential commercial opportunities, the statement included the following statements: Nike. Pursuant to its current agreement with FIFA, EA Sports is restricted in commercial activities due to FIFA’s sensitivity towards its commercial partners. Now freed from this restriction, Wilson has made it clear that EA Sports will seek to partner with more companies and brands, creating the potential for direct-to-consumer sales of team jerseys and other products.

The commercial success of the FIFA game has largely been built on EA’s ability to capitalize on football’s seasonality; The company has often made little more than cosmetic changes to its offerings, such as a well-known player wearing the jersey of his new team or a club promoted from a lower league, while introducing it as a brand new product on an annual basis.

“If it’s not #1, it’s definitely in the top three game franchises of all time,” said game analyst Sutcliffe. “And that’s because there are so many posts. Every year they change the number on the box, put a new player up front, and it’s pretty much the same under the hood.”

Some of the negotiations between FIFA and EA Sports have been built around the evolution of how the digital world is changing. Newer products and games like Fortnite and Roblox are seen as digital worlds as much as games; this is something FIFA is willing to take advantage of by licensing its name in other products.

EA Sports has told FIFA it won’t be ready to share a world-famous name in the context of the video game market.

“Hold on, I’ll say it a second: We spent literally hundreds of millions of dollars building this, and you’re telling me that Epic Games could come and get a license for the name we built and owned. Peter Moore, former head of EA’s sports division, told The New York Times when news first broke that EA and FIFA might leave the company.

EA’s financial strategy for FIFA has also evolved over the years, with increased profitability thanks to innovations such as player packs similar to trading cards that require users to spend money in-game while trying to build the best squads. An analytics firm estimated that the in-game feature known as Ultimate Team was worth $1.2 billion for EA Sports last year.

For FIFA, a hiatus with EA Sports and the loss of nine-figure license payments poses a risk for Infantino, after announcing last month he would run for a third term as president and promising more donations than ever to 211. football associations that vote in the election. Complex issues were also turbulent in FIFA’s commercial department. Kay Madatihired with much fanfare last summer, Left After less than a year in office last month, he became the third head of advertising to leave since Infantino was elected president in 2016.

For now, the focus of FIFA is the Qatar World Cup. The same goes for EA Sports; Wilson promises that the final version of FIFA – the game – will be the biggest ever in September. He also said he hoped it wouldn’t be the last World Cup in a game produced by EA Sports and offered an olive branch, insisting that a separate deal could still be made with FIFA.

“We would love to continue to represent the World Cup throughout the game.”