This morning, the
NBA and Take Two have announced a multi-year global partnership extension believed to be for seven years and worth up to $1.1 billion to the NBA and the NBA Players Association. The Wall Street Journal is reporting that this extension is worth more than double their previous deal in 2011. The deal value is based off sales of Take Two's NBA games, coming on the heels of NBA 2K18 selling over 10 million copies.
If the numbers are correct, this puts the value of the deal over $157 million dollars per year. Where does this leave other potential licensees and competitors? Could Take Two have just priced out other competitors, such as EA SPORTS' NBA LIVE Franchise? Or will the NBA give them and others a deal based purely on sales? It is worth watching to see if/when any extension with the NBA/NBAP and EA SPORTS is made or announced.
In
2011, the NBA put out a press release announcing the extension of deals with both Electronic Arts and Take Two Interactive.
Today's announcement focused solely on Take Two.
Is EA on a different contract timetable than Take Two? It is worth monitoring if/when any future announcements are made regarding extension of that deal, as well as terms.
Also, given the large value of this deal, is it possible Take Two will honor the
request of Charles Barkley and be giving money to the NBA Retired Players Association?
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