After dominating internationally for more than a decade, David Beckham moved to Los Angeles in 2007 — signing with the LA Galaxy of MLS.
The interesting part?
Despite a 70% reduction in salary, it's one of the most lucrative sports contracts ever.
Time for a thread 👇👇👇
1) First, some history:
Playing internationally from 1992 to 2007, David Beckham became one of the best players in the world.
But at 31-years-old, now a global superstar, Beckham had a choice to make — move to the US or continue his career internationally?
Hello Hollywood…
2) In 2007, David Beckham left Real Madrid — signing a five-year contract with the LA Galaxy of Major League Soccer.
From a salary perspective, the deal paid Beckham $32.5M — or $6.5M annually.
The intersting part?
He made much more than that.
Let's run through it…
3) While David Beckham's MLS contract only paid him $6.5M in annual salary — a 70% pay cut from Real Madrid — his US adventure ended up being much more lucrative.
As part of the deal, Beckham also got a percentage of team revenue — including merchandise, sponsorships & tickets.
4) By signing David Beckham — one of the most marketable athletes in the world — the MLS immediately saw tangible benefits.
Attendance hit record highs, sponsorships came pouring in & the league expanded.
With their financial incentives aligned, Beckham benefited also.
5) In total, through salary, endorsements, and revenue share, David Beckham made more than $250 million during his 5-year deal with the LA Galaxy.
At $50M+ annually, he was the highest-paid player in the world.
Even more interesting, that's not even the best part.
6) As part of his 2007 deal with the LA Galaxy, David Beckham was given the right to purchase a future MLS expansion team.
The best part?
The price was set at $25M — meaning when he exercised the option in 2014, he received a heavy discount to the current $150M+ expansion fee.
7) In 2014, David Beckham officially excercised his $25 million option to purchase an MLS expansion team — establishing "Inter Miami CF" with a group of investors.
With the average MLS team already worth $300M or more, Beckham and his investor group saw immediate upside.
8) While it's unclear if the MLS will ever see similar valuations to the NFL & NBA, they're making progress.
Vincent Tan sold 20% of his LAFC stake in Feb at a $700M valuation, which is more than some NHL teams.
Given the NHL had a 100-year head start, that's super impressive.
9) Ultimately, David Beckham's willingness to expand his brand internationally and his fortitude to think larger than a traditional salary have benefited him tremendously.
Always remember, equity is key.
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From luxury cars to personalized shotguns, NFL quarterbacks & running backs get creative when taking care of their offensive linemen.
Here are 5 of my favorite gifts ever.
Time for a thread 👇👇👇
1) After the Patriots’ 2007 season — a campaign which ended with a 16-0 regular-season record before losing in Super Bowl XLII — Tom Brady gifted each of his 5 starting linemen brand new Audi Q7 SUVs.
The cost?
Valued at ~$40,000 each, the generous gift was worth about $200,000
2) After the 2012 season, which saw Adrian Peterson rush or 2,097 yards — the 2nd-most in NFL history — the Vikings RB gave his linemen a Minnesota-Esque gift.
What was it?
Personalized Arctic Cat Snowmobiles.
At more than $8,000 each, the gift cost Peterson $40,000+ in total.
Two brothers teamed up with Wall Street to create the next great major US professional sports league.
Time for a thread 👇👇👇
1) First, some history...
Despite lacrosse being North America's oldest team sport—played by Native Americans throughout the 1400s—the US never developed a legitimate professional league.
That changed in 1999 when Jake Steinfeld, Dave Morrow & Tim Robertson founded the MLL.
2) Founded in 1999, Major League Lacrosse became the 1st outdoor professional lacrosse league.
The only problem?
Despite a decade straight of rising attendance—occasionally drawing 10,000+ fans—players weren't making any money.