David Beckham’s contract at LA Galaxy included two clauses that helped him earn $500 million, it’s genius

David Beckham was ridiculed by many when he agreed to take a 70% pay cut to join the LA Galaxy, but two ‘unique’ clauses in his contract at the MLS club would change everything.

It remains one of the greatest transfers in football history. 31 years old, then England international bekham When he left Madrid in the summer of 2007 for the glitz and glamor of California, he decided to embark on a new challenge.

He spent the last 15 years playing against the elite teams of Europe, winning trophies with Manchester United. real Madrid, so when he packed his stuff for a league that was only 10 years old, people asked questions. And rightfully so.

But what many don’t know is that Beckham made an incredibly business-savvy decision in the boardroom. Let’s explain.

David Beckham lifts the now iconic number 23 shirt during his LA Galaxy presentation. Image credit: Alamy

as stated by brilliant @JoePompliano Becks was able to negotiate a percentage of all team income as part of her contract in Los Angeles in a Twitter thread, meaning her earnings skyrocketed in the weeks, months, and years ahead.

And to be clear, that revenue included everything from merchandise, tickets, and sponsorships, as well as hot dogs, beer, and chips sold at the games.

In total, when you add up the salary, turnover, and revenue split, Beckham earned $255 million during his five-year spell. LA Galaxy [$50M annually].

TRUE. He may have been teased for taking a 70% pay cut, but the Manchester United academy product would become the world’s highest-paid player during his time in California.

And in addition to the above, he also negotiated the right to buy. MLS After his retirement, the $25 million expansion team was a genius move as Major League Soccer’s reputation continued to grow.

6) David Beckham brought tremendous growth to MLS.

Viewership has increased 40% since his arrival and has seen the MLS annual TV deal grow from $8 million in 2006 to $250 million today – a 3,025% increase.

And more importantly, the league has expanded. pic.twitter.com/cjyv6iFBea

— Joe Pompliano (@JoePompliano) January 4, 2023

As a result of Beckham making the league more popular, attendance figures continued to increase regularly, while MLS would add seven new franchises when it left the league.

Now, the average MLS franchise is worth $582 million, which is 1,472% more than it was worth in 2008. [$37m].

To further put this smart business move into perspective, St Louis paid $200 million for an MLS expansion fee in 2019, while Charlotte paid $325 million.

And Beckham, of course, exercised his $25 million option after retiring and reaped the rewards.

“After all, numbers don’t lie,” says Pompliano. “david beckham He took a big risk and was rewarded by turning his $6.5 million annual MLS salary into over $500 million.

“But MLS has also benefited – attendance, TV rights and valuations are huge. It’s a win-win for everyone.”

9) David Beckham’s team, Inter Miami CF, played their official debut on March 1, 2020.

And here’s the craziest part:

Inter Miami CF is already the 10th most valuable MLS club with $585 million.

That’s 2,240% more than the $25 million expansion fee. pic.twitter.com/oRTuLjLTKG

— Joe Pompliano (@JoePompliano) January 4, 2023

The above has gone viral lately and it’s easy to see why. Here’s how social media reacted to the two clauses in David Beckham’s contract at Galaxy:

One said: “Very clever and tough. Delayed gratification and it worked,” while another said, “The man had sharp vision and it’s come true. Big lesson learned here. A well-calculated risk is never popular.”

Third, “High risk, high return. Beckham is a genius.”

Fourth said, “This was a genius by both Beckham and MLS.”

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