David Beckham shocked the world when he left Real Madrid in 2007 to sign with the LA Galaxy of MLS.
He was just 31 years old and accepted a 70% pay cut.
But his contract included two unique clauses that eventually helped him earn more than $500 million.
Here's the story 👇
He was just 31 years old and accepted a 70% pay cut.
But his contract included two unique clauses that eventually helped him earn more than $500 million.
Here's the story 👇
1) Let's start in 2007.
David Beckham is on top of the world.
He is married to Victoria Adams from the Spice Girls and has spent the last 15 years playing for Manchester United & Real Madrid.
But then he shocks the world and signs with the LA Galaxy of Major League Soccer.
David Beckham is on top of the world.
He is married to Victoria Adams from the Spice Girls and has spent the last 15 years playing for Manchester United & Real Madrid.
But then he shocks the world and signs with the LA Galaxy of Major League Soccer.
2) Many people thought Beckham was an idiot.
He was just 31 years old and agreed to take a 70% pay cut (from $20 million to $6.5 million) to head to a league that was barely ten years old.
But those were just the headlines — the details of the contract were much more lucrative.
He was just 31 years old and agreed to take a 70% pay cut (from $20 million to $6.5 million) to head to a league that was barely ten years old.
But those were just the headlines — the details of the contract were much more lucrative.
3) Beckham was able to negotiate a percentage of all team revenue as part of his contract in LA.
That included everything from merchandise, tickets, and sponsorships, all the way down to the hot dogs and beer sold at games.
And it *drastically* increased his overall earnings.
That included everything from merchandise, tickets, and sponsorships, all the way down to the hot dogs and beer sold at games.
And it *drastically* increased his overall earnings.
4) In total, when you add up salary, endorsements, and revenue share, David Beckham made ~$255 million during his 5-years with the LA Galaxy in MLS.
That's $50M+ annually — and it made him the world's highest-paid player.
But that's not even the best part.
That's $50M+ annually — and it made him the world's highest-paid player.
But that's not even the best part.
5) Beckham also negotiated the right to buy an MLS expansion team for $25 million upon retirement.
This was 150% higher than the $10 million fee Toronto FC had just paid to join the league, so it didn’t initially seem like a big deal.
But as they say, things change with time.
This was 150% higher than the $10 million fee Toronto FC had just paid to join the league, so it didn’t initially seem like a big deal.
But as they say, things change with time.
6) David Beckham brought immense growth to MLS.
Attendance is up 40% since his arrival, and MLS has seen its annual TV deal go from $8 million in 2006 to $250 million today — that's a 3,025% increase.
And more importantly, the league has expanded.
Attendance is up 40% since his arrival, and MLS has seen its annual TV deal go from $8 million in 2006 to $250 million today — that's a 3,025% increase.
And more importantly, the league has expanded.
7) MLS added 7 new franchises by the time Beckham left the league, and they have added another 16 since.
This has helped MLS franchise valuations skyrocket.
Avg. MLS Franchise Valuation
2008: $37 million
2022: $582 million (+1,472%)
And no one has benefited more than Beckham.
This has helped MLS franchise valuations skyrocket.
Avg. MLS Franchise Valuation
2008: $37 million
2022: $582 million (+1,472%)
And no one has benefited more than Beckham.
8) MLS expansion fees have drastically increased.
Recent Expansion Fees
• NYC paid $100M
• Austin, Cincinnati & Nashville paid $150M
• St Louis paid $200M & Charlotte paid $325M
So when Beckham exercised his $25 million option upon retirement, he received a MASSIVE discount.
Recent Expansion Fees
• NYC paid $100M
• Austin, Cincinnati & Nashville paid $150M
• St Louis paid $200M & Charlotte paid $325M
So when Beckham exercised his $25 million option upon retirement, he received a MASSIVE discount.
9) David Beckham's team, Inter Miami CF, officially played its first game on March 1st, 2020.
And here's the craziest part:
Inter Miami CF is already the 10th most valuable MLS club at $585 million.
That's 2,240% more than the $25 million expansion fee.
And here's the craziest part:
Inter Miami CF is already the 10th most valuable MLS club at $585 million.
That's 2,240% more than the $25 million expansion fee.
10) In the end, the numbers don't lie.
David Beckham took a huge risk and was rewarded by turning his $6.5 million annual MLS salary into more than $500 million.
But MLS also benefited — attendance, TV rights, and valuations are all up big.
That's a win-win for everyone.
David Beckham took a huge risk and was rewarded by turning his $6.5 million annual MLS salary into more than $500 million.
But MLS also benefited — attendance, TV rights, and valuations are all up big.
That's a win-win for everyone.
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