Crytek CLAIMS they got some sort of discount. Does 1.85 Mio Euros look like a big-time discount? Not sure. As Derek said: Usually there are royalties included in these contracts. Crytek probably did not believe in a big success and opted for upfront payment.
It doesn't work that way. Royalties are calculated based on gross or net. I am sure that they calculated this, then CIG opted to pay up front as it was cheaper. And they made the right call because, well, they would still be paying royalties on $175M raised.
The other point you refer to I think you misread. IIRC they are forbidden to create an ENGINE for 2 yrs. So Crytek is ensuring that they are do not study their code and then turn around and develop a competing engine.
That 2yrs only kicks in after termination of the GLA.
Here's a livestream from the same lawyer who examined the original complaint by Crytek and he concludes that Cryteks claim may actually get dismissed:
He dropped the ball on this one. As a Star Citizen backer, it makes sense that he would want to pander to Shitizens for views. He spent more time reason the docs we already did, than offering any reasonable opinion.
For one thing, an attorney would never - ever - look at a case and call it a slam dunk. That's what courts are for. He said that if he were the judge, he would rule in favor of CIG. This after not even reading the important key points of the GLA which Crytek was alleging have been breached.
So of course, once again, Shitizens who are used to raising their hopes, only to see them dashed time and time again, are latching onto that bullshit.
Once the judge rules on the MtD on Feb 9th, and which we fully expect that she will rule against CIG, we'll see their reaction.