Thursday, April 19, 2007

LA has already turned a profit off Beckham

David Beckham's $250 million deal made huge headlines, but many wondered how the LA Galaxy could make money off it. However, once we learned that just $5.5 million of that huge sum was his annual salary and the rest was his cut from jersey sales, endorsements and sponsorships, it became easier to see how LA was going to do it.

Well it turns out that they have already brought in $13.3 million due to Becks' signing. This includes about $4.9 million from increased season ticket sales, $868,000 from corporate suites and $4 million a year from Herbalife for shirt sponsorship.

So Mr. Posh is still about three months away from playing his first MLS match yet he has already paid for more then 2-years of his salary. Not bad. Now the question is can he spark as much on the field as he can at the cash register?

Also from the article, MLS is hoping that Beckham can move the sale of MLS merchandise up the product sales ladder as they currently only manage about $150 million in sales. Matt Powell, an analyst for SportsOneSource's research arm, SportsScanINFO, said "$150 million is a non-event; it's walking around money. I'm sure Beckham is going to make a difference, but this gives you a sense of how tiny this business is right now.''

Mental note, if Powell ever offers to go on a walk with me, take him up on it.

By the way, the NHL sells $400 million worth of product while the NFL brings in $3.5 billion. MLS has a long way to go.

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Anonymous Dragon Dad said...

Do you think Mr. Beckham and the MLS arrangement would be willing to share a bit with the new women's pro league?

What ideas can we come up with to help this new effort to reach some financial success and grow?

Fashion ought to be something that the women's side could tap into naturally.

12:26 PM  

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