Written by Adamay Malik
Global Market for Electronic Games: Development, Patterns, and Top Players
With 1,472.0 million users, the electronic games market is a vast business that is predicted to generate US$282.30 billion in revenue by 2024 and increase at an annual rate of 8.76% to reach US$363.20 billion by 2027. By 2024, in-game advertising will be the largest, with US$109.60 billion. With US$94,490.00 million in sales, China leads the world. With an average revenue per user (ARPU) of US$215.20, this industry is expanding at a rate never seen before, demonstrating a global upsurge in popularity that is mostly being driven by pioneers in creative game production like Japan.
What are Image Rights
Traditionally, clubs have only compensated their players for participating in football. This is no longer the same connection. Football clubs are searching for a number of strategies to "monetise" and expand their revenue stream as commercial drives push the sport into the entertainment and brand spaces. As a result, clubs are forming a range of business alliances with companies that wish to be connected to them and their well-known players. Over sixty commercial partners, all vying for the right to use player photographs in their advertisements, are affiliated with several League teams.
The name, nicknames, likeness, image, photograph, signature, autograph, initials, remarks, endorsement, physical attributes, voice, and other personal traits can all be considered a player's image. The intention is that everything that might contribute to that athlete's image is included in the aforementioned descriptors so that the player and/or his team can promote themselves appropriately. A player will get compensation from a club and/or brand to support and advertise a variety of distinct business ventures.
Marketing + Visibility + Image = Revenue
(The fundamental idea behind how image rights and Revenue operate)
Brazil's protection of image rights
Brazil is one of the largest markets for EA Sports' FIFA as it is home to some of the world's most devoted and passionate football fans. Unfortunately, hundreds of players who want to play with the teams they love are frustrated since Brazilian clubs in FIFA or EA FC do not have licensed athletes in the game; instead, their rosters consist of generic individuals. Brazil is notably absent from EA FC 24, as the national team, uniforms, and emblem are not officially licensed. Even if players with realistic faces like Vini Jr. and Allisson are in their clubs, Brazil's absence is noticeable, especially in Kick-Off mode.
Due to licensing restrictions, Brazil and the Brazilian league is absent despite its significance in international football and the popularity of the Brazilian league. While leagues and teams may be added in the future, their protracted absence indicates they won't be included in this year's competition. This exclusion emphasizes how difficult it is for game producers to obtain licenses for well-known teams and leagues.
The Brazilian Federal Constitution recognizes the image right as a personality right that is unalienable, indefeasible, and unwaivable, among other unique attributes. Despite these qualities, a third party may use an assignment agreement to financially benefit from a player's reputation. Brazilian jurisprudence states that this contract must be read restrictively, including all of its specific uses and the precise manner in which the counterparty plans to utilise the in-question image. Furthermore, the contract must clearly and expressly state the individual's personal permission to use the photograph. The main cause of EA Sports' numerous issues in Brazil over the past few years is this rule.
For previous FIFA versions that are worth considering, EA Sports has not licensed any Brazilian club players. The business claims that there is no appropriate organisation to handle the talks in Brazil, unlike the Premier League in the UK, and that it would need to engage directly with each player to get their express consent.
Legal Overview of Paulo Dybala's Image Rights and Endorsements
Paulo Dybala's 2019 move to Tottenham was beset by difficulties and finally fell through after his image rights dispute was not settled. In the Dybala case mentioned above, the Argentine paid "Star Image," a third-party marketing organisation, to get the rights to his picture. If this is the case, any deal requiring such large payments would have needed the player to engage in a specific volume of brand-related commercial activity in order for the business to recover and, ideally, earn a profit on the original investment made in Dybala. Based on the player's promotional activities, it seems that he has provided brand endorsements for Samsung, Gatorade, Monster, OTRO, FIFA, and Adidas.
When a club wants to exploit a player's image rights for certain reasons, there may be image rights issues. Essentially, it might be their intention to utilise his picture for club marketing, including pictures of him wearing club gear, in the club store, on their social media accounts, and in collaboration with certain current sponsors and partners. For instance, some clauses in the typical Premier League employment contract that every player signs with his team permit a club to utilise many of its players as brand ambassadors.
The contract usually stipulates that "the Club's use of the Player's Image must not be greater than the average for all first team players," for example, indicating that its scope is severely restricted. In the event that Dybala has sold the image rights to a third party and is not in control of them, the club will need to reach a business arrangement with the marketing firm in order to utilise the rights. It's possible that the marketing firm placed a far higher value on those rights than the club did.
The contract usually stipulates that "the Club's use of the Player's Image must not be greater than the average for all first team players," for example, indicating that its scope is severely restricted. In the event that Dybala has sold the image rights to a third party and is not in control of them, the club will need to reach a business arrangement with the marketing firm in order to utilise the rights. It's possible that the marketing firm placed a far higher value on those rights than the club did.
More significantly, Harry Kane's image would likely be more sought after by the team's commercial partners for usage than that of a first-team player who could be less known in other regions. In order to manage the right to promote certain goods and services, Spurs must enter into a separate contract with the player through an image rights arrangement if they wish to utilise the player's image for a variety of sponsorship options. According to reports, Dybala's issue is complicated by the fact that most players control their image through a corporation, and the team has a contract with that company. It doesn't seem like the Dybala transfer was like that. In major football teams like Tottenham Hotspur and Manchester United, negotiating image rights deals is a difficult procedure full of obstacles.
Clubs sometimes put severe limitations on players' access to their personal images in order to avoid upsetting current sponsors. For instance, a team supported by a certain automaker or insurance provider can forbid its athletes from supporting other companies, even in their individual capacities. These limitations may make it difficult for the marketing firm that controls a player's image rights to land big brand deals, which may result in disputes and demands for more payment.
Possible Solutions
A direct link to the image rights agreement that the athletes and their teams sign would be one way to address this problem. Clubs can make many uses of their players' photos according to this deal. It is crucial to keep in mind that the clubs must specify the precise scope of usage in the contract. The most popular uses include signing autographs, taking part in photo shoots, appearing in ads, appearing on the club's YouTube channel, and so on.
It would be far simpler for EA Sports to license the athletes in FIFA if those contracts included a specific clause allowing the clubs to use the players' images in video games. Rather than needing to negotiate with each individual player, the company could license the athletes' images through agreements made with their clubs, as is the case, for example, in Italian football. For the business, this would save a ton1 of time and money. Who knows, maybe it might even spur EA Sports to revive Brazilian football in FIFA.
Conclusion
The difficulties with image rights—which are exemplified by situations such as Paulo Dybala's—highlight the intricacies of sports business relationships. Clubs, players, and third-party businesses interact with one another, which emphasizes the necessity of more transparent contract frameworks to expedite licensing procedures. Fixing these problems improves the whole experience for gamers, fans, and business stakeholders in addition to the gaming industry. A more dynamic and long-lasting sports ecosystem may be achieved by streamlining collaborations and facilitating the more seamless integration of player pictures across media through the clarification of agreements between clubs and players.
*The Author is a legal Scholar from India
(The Image used here is for representative purposes only)