U.S. soccer league banking on Beckham for big payday
As David Beckham moves from a Spanish soccer pitch to delivering a polished sales pitch in his new role as American soccer idol, he will need to make both the Los Angeles Galaxy and its business partners prosper as he collects a hefty paycheck, starting with his guaranteed, $6.5-million salary.
Beckham, who was met by a crush of reporters and cameras at Los Angeles International Airport upon arriving Thursday night from London, will be formally introduced today on the field at Home Depot Center in Carson. But the British star already has proved he will have an impact at the box office, in stores and in the media.
Beckham's personal payday at the end of his five-year deal with the Galaxy is expected to reach or top $250 million on the strength of that guaranteed salary, his existing corporate sponsorships -- worth an estimated $20 million per year -- with such companies as Motorola and Adidas, as well as profit-sharing deals negotiated with the team and its corporate partners.
In order for Beckham's payday to pencil out, however, Major League Soccer's sports marketing machinery will have to grind out an even bigger number.
"There's going to be a billion-dollar impact," said Tim Leiweke, chief executive of AEG, the Galaxy's parent company. "No question about it."
Leiweke's bold assertion covers a range of soccer-related business dealings that arguably will be shaped by Beckham's presence.
Jersey and ticket sales will be relatively easy to compute. But future media rights fees, naming rights deals, and the revenue generated by additional MLS franchise fees will take longer to measure. And the benefits to such companies as Creative Artists Agency and 19 Entertainment Inc., which represented Beckham in the Galaxy deal, might never be fully understood.
But start with the shirt on Beckham's back and Leiweke's calculus begins to take shape.
If Beckham can help to sell 200,000 Galaxy jerseys at $80 a pop, that would represent $16 million at retail and give business partner Adidas a powerful edge in its battle with Nike.
Ring up another $25 million, which is what Herbalife is paying to put its name on Beckham's chest -- and then wait to see what other corporations will pay for similar real estate in other MLS cities.
Herbalife's logo will be seen by thousands of additional fans across the country. Galaxy ticket revenue alone has doubled in recent months and advance sales for five road games with Beckham in uniform averaged 26,419 as of Wednesday, well above the league average of 15,089.
