EA’s athletic licensing woes seem to have no end, as now the NCAA themselves are suing the company for breach of contract.
This is in connection to the deal EA tried to broker with individual football college teams via the Collegiate Licensing Company, which is also being sued in this case. The Collegiate Licensing Company was actually party to the previous lawsuit that a group of athletes threw at EA and the NCAA. EA and the Collegiate Licensing Company decided to settle their part of the lawsuit, presumably so that they could start over getting new contracts. As the NCAA points out, this in violation of the terms that lawsuit was settled.
NCAA also points out that EA did not maintain liability insurance to cover third party claims. If they had such insurance. It would have covered the attorney’s fees NCAA paid defending themselves in that lawsuit. On the other hand, the Collegiate Licensing Company did not do their job supervising EA and explaining these contractual obligations. NCAA also complains the Collegiate Licensing Company did not provide them access to records and documents they were entitled to inspect.
NCAA was not made aware of the deal EA and the Collegiate Licensing Company made, and was not given access to any paperwork regarding it after the fact. After EA settled with some of the athletes, NCAA was left alone to defend themselves from these charges.
NCAA intends to have EA pay future legal fees, but more importantly, they want to stop EA and the Collegiate Licensing Company from completing their agreement. To sports gamers, this means another setback to having future NCAA games made. Unless another company steps up, don’t hold your breath for any college sports games soon.
Image is from NCAA Football 14.
