Major League Soccer could be a big hit in 2023, but things were quite the opposite when David Beckham signed a seemingly modest deal with the Los Angeles Galaxy in 2007. Many raised eyebrows when Beckham suffered. took a huge pay cut to join the American team, a league that was only formed in 1993. Beckham joined Galaxy from Real Madrid after winning La Liga in 2007, when he was 31 years old, he was cut. 70% salary reduction.
But it’s clear that Beckham has been thinking about the long term. Although MLS was looked down upon by many at the time, the former Manchester United star saw the potential that awaited. Beckham even managed to negotiate some crazy terms in his contract, terms that earned him $500m (£420m) later on.
Beckham is currently a successful businessman.
These days, moving to the MLS is a trendy move by big players at the end of their careers. Gareth Bale is the latest star to come to America, and Steven Gerrard, Zlatan Ibrahimovic, Kaka and Gonzalo Higuain have all done the same in their careers.
But Beckham paved the way for that and helped the league thrive. Entrepreneur Joe Pompliano looked at Beckham’s contract deal with the Galaxy back in 2007, and it shows just how savvy the former player is. Beckham spent five years in Los Angeles and won two MLS trophies, but he’s achieved even more since retiring.
Beckham may have taken a huge pay cut, but he also negotiated to make the team’s revenue part of his contract. This includes everything from tickets and sponsorships, to food and drinks sold at matches.
With the huge charisma Beckham brings to the Galaxy, his income increases every week. When you add up his salary with the part of the revenue negotiated, Beckham made $255m (£215m) over his five years at Galaxy.
He had a long-term vision from a young age.
This salary may become conceivable in 2023, but at the time, the $50m (£21.5m) Beckham earned annually made him a top earner. best in the world – not bad for someone who’s had a 70% pay cut. But Beckham’s best deal has yet to be used.
Beckham negotiated a deal that would allow him to qualify for an MLS franchise for just $25m (£21m) upon retirement, and that’s exactly what he did when Inter Miami was founded. after that. This genius negotiation turned out to be a huge bargain for Beckham, as in 2023 the average MLS franchise is valued at $582m (£490m). It is likely that franchises and stocks continue to rise as MLS becomes increasingly popular.
It might have been a risk for Beckham then, but he trusted his instincts when the opportunity presented itself. Pompliano concluded: “In the end, the numbers don’t lie. David Beckham took a huge risk and paid off by turning his $6.5 million MLS annual salary into more than 500 million dollars. But MLS benefits too – subscriber rates, TV rights, and valuation all go up. It’s a win-win for everyone.”
Thanh Vu | 16:32 07/01/2023
