It took some really big dealers to wrap up the $250-million package that will bring soccer star David Beckham to Los Angeles later this year to play for the Galaxy in Major League Soccer.
Key movers in the deal that began to take shape on New Year's Day included AEG President Tim Leiweke, "American Idol" creator Simon Fuller, Creative Arts Agency and executives at German shoe giant Adidas. The supporting cast included MLS owners who recently restructured a salary cap and television networks that are paying millions of dollars for the right to broadcast upcoming MLS games.
For The Record
Los Angeles Times Saturday January 13, 2007 Home Edition Main News Part A Page 2 National Desk 0 inches; 35 words Type of Material: Correction
Soccer: An article in Friday's Sports section on the deal that will bring David Beckham to the Galaxy said Creative Arts Agency helped make it happen. The name of the company is Creative Artists Agency.
Beckham's existing contract with Real Madrid in Spain prohibited him from seeking a new deal until Jan. 1, so that's when AEG's chase began in earnest.
"I made some people miserable because we worked on the holiday," Leiweke said. "And we kept at it until 3 or 4 this morning. There have been a lot of intense conversations."
Leiweke declined to comment on specifics of the deal that AEG and Beckham's camp described in a press release as being worth $250 million over five years. But the eye-popping figure isn't a straight salary deal like the U.S. record for an athlete -- the $252-million, 10-year contract that Alex Rodriguez signed in 2001 with the Texas Rangers.
Beckham's Galaxy contract is worth about $10 million annually, according to sports, advertising and entertainment industry executives. Beckham, who pitches product for Adidas, Gillette, Motorola and Pepsi-Cola, hopes to earn about $20 million annually from sponsorship deals. Sales of jerseys and other gear could contribute another $10 million, and Beckham reportedly negotiated a profit-sharing plan with the Galaxy and AEG that, depending on the club's finances, could deliver another $10 million annually.
Though AEG couldn't approach Beckham until Jan. 1, the Los Angeles-based sports and entertainment company was able to build upon an existing relationship because Beckham earlier had opened a soccer academy at the Home Depot Center in Carson.
AEG's entertainment division also had done business with 19 Entertainment Inc., a Fuller company that created "American Idol" and had managed the Spice Girls singing group; Beckham's wife, Victoria, is the former Posh Spice.
Owners of competing MLS franchises also welcomed the news. "You've got to give Tim Leiweke all the credit in the world," said Dave Checketts, whose New York-based SCP Worldwide owns MLS Real Salt Lake. "This took a tremendous amount of vision, energy and work. And it helps to have [AEG owner] Phil Anschutz's checkbook."
