Electronic Arts has released their preliminary financial results for is second fiscal quarter on Wednesday, allegedly revealing a $40 million revenue loss citing "college football settlement expenses."
A former UCLA basketball player sued the NCAA, EA Sports and Collegiate Licensing Company for using his name, image and likeness without compensation, according to multiple reports. EA sports and CLC settled out of the lawsuit. Though the settlement has not been disbursed, it can be distributed to anyone who has ever been featured in a college sports video game.
After the UCLA basketball player filed the lawsuit, other former and current NCAA athletes wanted to join the case. The U.S. district judge assigned to the case is still deciding whether it should become a Class Action lawsuit, meaning anyone can join the pending suit. The amount EA settled out of court for was never officially disclosed to the public.
EA Sports announced in September they would not be making a college football game next year.
"We have been stuck in the middle of a dispute between the NCAA and student-athletes who seek compensation for playing college football. Just like companies that broadcast college games and those that provide equipment and apparel, we follow rules that are set by the NCAA - but those rules are being challenged by some student-athletes," EA Sports said in a statement in September.
"For our part, we are working to settle the lawsuits with the student-athletes. Meanwhile, the NCAA and a number of conferences have withdrawn their support of our game," EA Sports explained. "The ongoing legal issues combined with increased questions surrounding schools and conferences have left us in a difficult position - one that challenges our ability to deliver an authentic sports experience, which is the very foundation of EA SPORTS games."
According to multiple reports, NCAA severed ties with EA Sports indefinitely. EA sports attempted to continue making a college football game, but could not get the proper licensing from individual athletic conferences.
