Monday Tip-Off: The Attainability of the NBA License
We’re at midcourt, and the ball is about to go up…it’s Monday Tip-Off! Join me as I begin the week here at the NLSC with my opinions and commentary on basketball gaming topics, as well as tales of the fun I’ve been having on the virtual hardwood. This week, I’m tipping things off with some thoughts on the attainability of the NBA license for video game developers and publishers.
As Dee and I discussed on last week’s NLSC Podcast, we have some concerns when it comes to NBA The Run. While we’re happy to see another basketball video game in the space – one that has the NBA license, no less – we’re not so thrilled about it being an exclusively online PvP title. The snippets of gameplay that we’ve seen so far have also left us feeling sceptical. Irrespective of how successful NBA The Run turns out to be – and again, we absolutely want to see alternatives to NBA 2K – it may not be the game for us. That’s just the way it goes, sometimes.
However, in a way, NBA The Run has already enjoyed a measure of success. What began as an unlicensed streetball game comprised solely of fictional characters now has the NBA license. More to the point, the NBA reached out to Play By Play Studios to discuss a partnership. Obviously that was great news for the game that started life as The Run: Got Next, but it also bodes well for other developers, and ultimately us as gamers. It demonstrates that the NBA isn’t interested in an exclusive deal with 2K or any other developer, and that they’re willing to work with smaller studios. In short, if you’re developing a basketball video game, the NBA license appears to be attainable.
This is something that many of us have wondered and worried about as NBA 2K has established a virtual monopoly over the virtual hardwood. Although there have never been any reports of Take-Two or the NBA seeking an exclusive partnership, there has been speculation that other companies – with the likely exception of Electronic Arts, of course – might be priced out of the NBA license. When Take-Two extended their agreement with the NBA back in 2019, it was reported that the deal would see them pay the league and the player’s union $1.1 billion over seven years. The terms of last year’s extension haven’t been revealed, but it’s safe to assume that it’s a similar figure.
On the surface, that’s a daunting amount of dollars for a developer. As the 2019 report notes however, the deal is based on a percentage of game sales and microtransaction revenue, with licensing fees for major sports leagues generally ranging from 10-15%. To that point, the $1.1 billion that Take-Two is paying for the NBA license is a cut of the revenue from NBA 2K for the duration of the contract, rather than the set price that they or any other developer would have to pay as an upfront fee. Other studios might have to agree to the same percentage to obtain the NBA license, but the point is that 2K’s deal doesn’t indicate that it would be unattainable for a smaller developer.
Granted, I’m guessing this is something that most of us knew or strongly suspected. Of course, while there may not be a prohibitive fee standing in the way of attaining the NBA license, the league would still have to view a partnership as a rewarding investment. In that sense, money is still an issue; it’s just a matter of being mutually beneficial rather than a case of affordability. There are some fantastic indie basketball games being developed, but their price point and popularity wouldn’t make them very profitable investments for the NBA. For that matter, the NBA’s cut might also eat into an indie developers’ profits, not to mention potentially restrict their creative freedom.
Nevertheless, the ability to partner with the NBA remains a huge opportunity, and it’s clear that you don’t necessarily need to be a huge studio to obtain the license. NBA The Run is the most recent proof of that. It’s also evidence that the NBA will seek out new partners, suggesting the license isn’t something developers have to beg and plead for. That’s not to paint the league as being altruistic here. It benefits them to put their brand on products, and take a cut of their revenue. At the same time, it’s great that the NBA isn’t interested in making its license exclusive, and is open to partnering with smaller companies in addition to billion dollar corporations like Take-Two and EA.
Admittedly, there is a downside to this. The NBA license isn’t a guarantee of quality, after all. As great as it’s been to see some other licensed video games pop up here and there, we can’t pretend that they’ve all been excellent releases and viable alternatives to NBA 2K. Putting aside the struggles of NBA Live during the seventh and eighth console generations, there have been flops such as NBA Unrivaled and NBA Baller Beats. Raw Thrills’ arcade-exclusive NBA Superstars is no NBA Jam, even with the legendary Tim Kitzrow on the call. We’ve yet to see how NBA The Run pans out, but even if it exceeds expectations, an online-only PvP game won’t be to everyone’s taste.
This was an issue back when there were multiple NBA-licensed games on the market, too. As nostalgic as I am for the days when we had a handful of developers throwing their hat into the ring with basketball video games, not all of them were outstanding releases. The gap between the best hoops titles and the rest of the pack was frequently quite large, so it’s no surprise that the glut of games wasn’t sustainable. There have also been mobile games such as NBA Smash, which were purchased through SMS on subscriptions that you’d have to opt out of if you didn’t want more games (remember those?). Plenty of underwhelming video games have been granted the NBA license.
It goes to show that the NBA license isn’t this sacred property that’s only bestowed upon the most worthy products of the highest calibre. Honestly, I have no problem with that! Sure, ideally quality control would mean that we could trust anything that’s NBA-licensed is going to be worth buying for the average basketball fan and gamer. Realistically though, like any other brand, the NBA along with its teams and players are going to end up in some mediocre products, and the occasional really bad one. They’re going to take a few calculated risks with their license if the potential for profits and brand exposure are there, and not all of them are going to turn out well.
Still, I’d much rather the NBA does that than zealously withhold opportunities for their license from everyone but Take-Two and other big developers. Even if I’m not the biggest fan of the NBA Playgrounds games, I’m glad that Saber Interactive was able to make them. As much as NBA The Run doesn’t sound like it’s going to be for me, I’m glad that Play By Play Studios have the chance to expand upon their vision with the inclusion of NBA players. I’m not saying that the NBA license should be just handed out to anyone and everyone, but it should be feasibly attainable. Not every partnership will produce a great product, but the NBA should be open to new partners.
Considering that NBA The Run probably isn’t going to be the game for me unless it ends up adding offline modes and content, I’m actually more excited about what its journey means for other developers. It shows that if you can develop an unlicensed basketball game that’s good enough (or at least intriguing enough) to generate some buzz, there’s a chance it’ll open the door to a partnership with the NBA. Indeed, the NBA may well come knocking on your door first! It should encourage small studios and arguably even indie developers to put their best foot forward and be ambitious. If the quality and potential is there, then the NBA license could indeed be attainable.
While the NBA license may be the most prestigious – or at least, lucrative – there’s the potential for other opportunities as well. As you may have seen, Super Basketball Classics from Namo Gamo and Acclaim will feature the Harlem Globetrotters; an awesome “get” for Josh and Dave! There are other professional basketball leagues around the world that might be interested in partnering with an up-and coming video game developer with a hoops title in need of branding. It seems like only a matter of time before someone partners with the BIG3. Obviously, a license isn’t something that can be counted on, but I’d suggest that the chances aren’t as remote as they may seem.
Once again, the market being flooded with mediocre and subpar basketball video games – NBA-licensed or not – isn’t an ideal scenario for the genre. On one hand, I welcome any attempt to provide an alternative to NBA 2K, so I’d rather developers try and fail than not try at all. On the other hand, it’s important to have standards, and a disappointing release only strengthens 2K’s claim of being the “undisputed home of basketball gaming”. Still, if games with potential present themselves, or a big studio like EA wants to seriously invest in returning to the space and competing with 2K, it’s encouraging to see that the NBA license isn’t unattainable despite NBA 2K’s success.
As I said, that’s how it should be. Yes, NBA 2K is the brand leader, and it’s difficult to see it relinquish that spot even if a viable competitor presents itself in the near future. We do need those alternatives, though. For all of its success, not everyone is satisfied with NBA 2K right now. There’s unquestionably fatigue with the series. NBA and NFL fans alike have seen what happens when there’s only one annual title. Basketball gamers are more fortunate here of course, seeing as how the clearly superior game did win out. Beyond that though, there’s no exclusive deal preventing the development of other NBA games, and the league doesn’t appear to be interested in going that route.
Quite the opposite in fact, considering that the NBA is seemingly proactively seeking out new video game partners with opportunities to use their license; if they like what they see. The door obviously remains open for a large company like EA – though they seem to have slammed it shut of their own accord – but clearly, smaller studios should never say never here. If you can develop a basketball game that grabs attention even without the NBA license, it may not remain out of your reach for too long once the league notices what you’re doing. The attainability of the NBA license is great news for developers, and with any luck, we gamers will ultimately benefit from it as well.
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