Thu, Jun 09, 2011 | 17:47 BST
EA could lose $80 million in revenue should NFL lockout lead to cancelled season
EA has said that revenue derived from its Madden NFL franchise could cause the firm to lose up to $80 million should the National Football League lockout leads to a canceled season.
Speaking with Bloomberg, EA Sports president Peter Moore told the financial new outlet that EA is currently working with the league as well as the NFL Players Association to “minimize the potential impact of a lockout-shortened season,” on sales of EA Sports’ NFL-developed games.
Moore estimated the loss could be as low as $70 million or as high as $80 million with the lockout’s impact hitting 35 percent of revenue, which is stark contrast to the potential loss of $165 million analysts predicted in the New York Post. Analyst Michael Pachter believes the impact could go as high as 50 percent of the sales Madden NFL.
“You do get concerned that the attention of sports fans goes elsewhere,” Moore said. “People not only get disenchanted, they get angry.”
Stock prices for Electronic Arts fell 63 cents, or 2.7 percent, to $22.72 yesterday on Nasdaq, yet shares in the firm are up 39 percent for the year.