February 22, 2024

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Front Office Sports

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EA Sports makes an offer to college football players to be depicted in its revived video- game franchise, but the low amount reignites the compensation debate. … Fan actions prove decisive in the German Football League’s abandonment of a potential private equity deal. … Johnny Manziel discusses how pre-NIL payments to star college players worked. … Plus: More on golfer Nick Dunlap, LIV Golf, the costs of attending pro soccer matches, and Salt Lake City’s MLB ambitions.

—Eric Fisher 

‘Treated Like Children’: College Players Offered $600, No Royalties

Kirby Lee-USA TODAY Sports

For a decade, fans have awaited the return of EA’s college sports video games after a lawsuit halted them in 2014 when former UCLA basketball player Ed O’Bannon sued to be compensated for the use of his name, image, and likeness.

The return of EA Sports College Football, slated for this summer, took a major step forward Thursday when the video game operator opened its opt-in program for players. Anyone featured in the game will receive $600 and a copy of the game, with the opportunity to earn more with additional promotions, Front Office Sports confirmed.

That news is a win for college sports, as the franchise’s return is likely the most-anticipated product of the name, image, and likeness era. But the NIL deals offered to players aren’t quite up to industry standard. Beyond the one-time payment, players will not receive royalties tied to game sales, even though the practice is common across the sports video game landscape. For participants, that’s where most of the money is. 

Mixed Reactions

In response to the deal, an athlete advocacy group called the College Football Players Association released a statement on X (formerly Twitter) criticizing the terms as subpar. “The athletes of the second most popular sport in America are being treated like children,” the group said. 

Across the industry, feelings vary about the deal. For athletes who may not have name recognition, a $600 check and opportunity to be part of a historic game is more than enough—but that arrangement undervalues more popular players.

The negotiation process for the deal itself was also different from the professional realm. Normally these types of group licensing deals are bargained by players’ unions. There’s no formal players’ union for college football players or any college athletes; however, a company called OneTeam Partners stepped in to fill that vacuum. (A lawsuit by another company, The Brandr Group, called into question which company had jurisdiction to negotiate on behalf of players. It has since been dropped.)

Fan Power in European Soccer Grows As German Football Deal Scuttled 

DFL/Bundesliga

The fans won. 

The German Football League (DFL) has abandoned long-discussed plans to sell part of its media rights for roughly $1 billion to private equity, a decision made in the wake of increasingly strident and disruptive fan protests that included throwing objects on match fields such as tennis balls, chocolate coins, and remote-controlled cars filled with smoke flares.

CVC Capital Partners had been the only remaining bidder to invest after fellow finalist Blackstone dropped out of the process earlier this month. 

“It appears that continuing the process successfully is something that is no longer possible,” said DFL executive board spokesperson Hans-Joachim Watzke, who is also the president of the Bundesliga’s Borussia Dortmund. “German football is in the midst of a crucial test of its strength, and this topic has given rise to considerable conflict. … That conflict is increasingly putting match operations, specific matches, and thus the integrity of the competition at risk.”

The private equity effort—which would involve an upfront investment in exchange for up to 8% of future media and sponsorship revenues over the next two decades—had been intended to help boost the DFL financially, secure larger media rights deals around the world, and keep up with major entities in the sport such as England’s Premier League. 

Instead, the end of the plan represents a major escalation of fans’ power in European soccer that already has seen massive protests in recent years against clubs such as Manchester United, Chelsea, Everton, and the original Super League. Numerous German matches experienced stoppages due to fan protests. Pro soccer in Germany has long featured a “50+1” ownership rule limiting the role and power of outside investors. Though the potential CVC deal would not have violated that provision, the possibility of outside investment was coldly received by fans from the start. 

“The comprehensive but very peaceful and very creative protests were ultimately the key to success,” said fan group Unsere Kurve.

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LOUD AND CLEAR

Johnny and the Bag Man

Kevin Jairaj-USA TODAY Sports

“There was a bag man at every school around the country if you were competing for a national title.”

—Johnny Manziel, describing how his father allegedly tried to broker a $3 million deal on his behalf with former Texas A&M coach Kevin Sumlin while Manziel was starring for the Aggies during pre-NIL days. Manziel shared the story with Shannon Sharpe on the Club Shay Shay podcast that aired Wednesday.

Manziel, who was the No. 22 pick in the 2014 NFL draft but played only 14 games in the league, explained that his father “did this without me knowing. And I ain’t mad at him about it for nothing. It’s the way the business worked back then. There was a bag man. There was a bag man at LSU. There was a bag man at Bama.”

STATUS REPORT

Two Up, Two Down

Desert Sun

Nick Dunlap ⬆ The 20-year-old (above)—who in January became the first amateur to win a PGA Tour event in 33 years—has signed with sports agency GSE Worldwide, which reps other top golfers like the Tour’s Sam Burns as well as LIV Golf’s Bryson DeChambeau and Joaquin Niemann. Dunlap, who wasn’t allowed to accept the $1.5 million winner’s check at the American Express tournament, has made $32,000 in his two starts since turning professional.

LIV Golf ⬆ The controversial league inked a deal with Panini to produce trading cards for its teams and players, the company’s first foray into golf. It’s a small victory for LIV, which initially struggled to bring on mainstream partners and sponsors after its launch in 2022, with the majority of its funding coming from the Public Investment Fund of Saudi Arabia.

Soccer fans’ wallets ⬇ It’s not getting any cheaper to attend sporting events in 2024. Fans of the NWSL’s KC Current are speaking out against the parking costs outside of the team’s new stadium, which will add up to nearly $1,000 for the 14-game season ($68 per match). Meanwhile, Arsenal supporters are criticizing the Stan Kroenke–owned Premier League club for raising its season-ticket prices by as much as 6% starting this fall.

Salt Lake City ⬇ ESPN baseball insider Jeff Passan recently picked the city as a front-runner for MLB expansion, but local officials still aren’t sure about helping fund a new major-league ballpark. A statement on behalf of Salt Lake’s mayor and city council said a proposed bill “creates immediate concerns” about the distribution of tax revenue and land use.

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Conversation Starters

  • Now that we know EA Sports College Football 25 is returning, which TV personalities will be featured in the video game? Here’s a list. 
  • Former NFL star running back Adrian Peterson clarified recent rumors and media reports by saying he has not authorized the sale of any of his trophies or awards. Watch here.
  • Real Madrid is now set to have three of the four most valuable players in the world after reportedly signing Kylian Mbappé.

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Written by Amanda Christovich, Eric Fisher
Edited by Matthew Tabeek, Catherine Chen

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