It's not just the players who stand to make money from an upcoming college football video game: The schools will also get some cash.
For the University of Michigan, the minimum payment can easily exceed six figures.
The University of Michigan athletic department will receive $99,875.16 as part of its participation in EA Sports' College Football '25 video game, which is set to release on PlayStation and Xbox consoles on July 19, according to documents recently obtained by MLive.
A letter sent in March by CLC, the licensing arm of Learfield Sports, to member schools detailed the royalty structure for university athletic departments that have loaned rights to university logos and trademarks. Schools are divided into four “tiers” based on the performance of their football teams over the past 10 seasons, with GameMakers focusing on the AP Top 25 poll at the end of the season.
If a school finishes the season ranked in the polls, they are awarded points: 6-10 points earns a “Tier 1” ranking and a minimum payout of $99,875.16, 2-5 points earns a “Tier 2” ranking and a payout of $59,925.09, 1 point earns a “Tier 3” ranking and a payout of $39,950.06, and 0 points earns a “Tier 4” ranking and a payout of $9,987.52.
more: Donovan Edwards: “It's a dream come true” to appear in EA Sports College Football '25 video game
“We expect our actual sales and royalties to exceed the minimum guaranteed royalties and result in increased revenues,” the letter said.
Although details on the financial figures needed to receive the additional payments were not included, Michigan and all participating schools will receive an upfront payment equal to 25% of the minimum guaranteed amount on Oct. 31, 2024, with the remaining guaranteed amount to be paid during the first quarter of fiscal year 2025.
After the upfront payment, EA Sports will report royalty amounts on a quarterly basis and schools will receive additional payments, which would bring Michigan's payment over the six-figure threshold, according to the letter.
The video game from Electronic Arts has been in development for years, with EA choosing to revive its dormant college football video game brand in a licensed business relationship involving student-athletes.Current players were given the opportunity to “opt in” to have their name, image and likeness (NIL) appear in the game in exchange for a payment of $600 and a free copy of the game.
Game and school officials declined to release a full list of Michigan players scheduled to play in the game, but some of Michigan's biggest names are expected to play in the match, including Will Johnson, Mason Graham, Colston Loveland, Alex Orji, Rod Moore and Kenneth Grant.
Michigan State running back Donovan Edwards will appear on the game's cover and help with marketing, and is expected to make even more money.
