The "How Can they Justify Beck's Pay?" thread

Discussion in 'MLS: General' started by golazo68, Jan 10, 2007.

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  1. chrishungate

    chrishungate Member

    Dec 16, 2005
    Katy, TX
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    Here's the breakdown as I understand it (via various reports):

    MLS pays: $400,000/yr. per Designated Player rules

    AEG is paying: $9 million/yr. (reported salary)

    The rest has to come from Beckham retaining 100% of his image rights:

    $44 million/yr. (reportedly)

    Add all that up and you have approx. $55 million/yr. * 5 years = $250 million over 5 years.
     
  2. almeras2475

    almeras2475 New Member

    Aug 31, 2005
    Tennessee
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    First of all, less people are watching baseball every year, and the NBA is beginning to follow suit. I assume his image rights are part of the deal, along with Adidas upping the amount of his sponsership, a portion of Galaxy memorabilia and apparal sales, and part ownership. Just my take on it.
     
  3. Northside Rovers

    Jan 28, 2000
    Austin TX
    Club:
    FC Dallas
    Nat'l Team:
    United States
    Re: MLS Economics 101

    When was the last time MLS got mentioned every 15 minutes ALL DAY on ESPN radio?

    This kind of advertising MLS rarely gets.

    In a league where the playoff race is like watching cars in a school zone.
    In a playoff system that makes the regular seaon record 67% meaningless.

    How else is MLS going to dent the radar?

    This is money well spent. It may be a gamble - but MLS has to do something now that ESPN is paying for the TV rights. Why else watch - the competition? Sheesh. My sons Academy Rec team plays in tournaments where fewer team advance than the in MLS playoffs.

    As an MLS fan - I am happy.
    As a Dallas fan - I am also happy.
    As a soccer store owner, I am thrilled.
     
  4. golazo68

    golazo68 Red Card

    May 21, 2004
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread


    Geez Richard- have you been reading ANY of the threads on this?

    The logic is pretty plain.

    Are you not aware that he pulls in 44m $ a year in endorsements. That he split that 50/50 with Real Madrid. That he going to retain 100% of that now, and 5 years x 44m $ = (you add up).

    Looking at the British posters on this, I don't think they are very knowledgeable about how much celebrities (or athletes for that matter) make on endorsement + other deals in the US. The $$ just dwarf what athletes in many other parts of the world make.

    Also- other teams wanted him, so please let's stop that nonsense right now. I know its fashionable to run the guy out of town (or the country), but he still could have played well/very well for a Tottenham or even possibly an Inter Milan for 2-3 more seasons.

    As good as Giggs and Scholes are playing, they aren't what they used to be either, yet they are playing/starting for #1 team in England. If Beckham is off their standard, it ain't by that much. That's not the same as saying Beckham is at C. Ronaldo's standard, of course.
     
  5. ACGreen

    ACGreen Member

    May 12, 2004
    São Paulo, Brasil
    Club:
    --other--
    Nat'l Team:
    United States
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    When was the last time anyone here remembers MLS being on the front page of the Guardian, CNN, MSNBC, NYtimes, LATimes, et al.

    Hard to quantify the value there.

    As well as the knock on effect that MLS is now 'open for business' to not quite over the hill stars.
     
  6. chrishungate

    chrishungate Member

    Dec 16, 2005
    Katy, TX
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Re: MLS Economics 101

    Dude, don't you get it?

    The Designated Player rules specifies that only $400,000 of a DP's salary counts toward a team's salary cap and is paid by the league. The remainder of a DP's salary must be paid by the team's owner - in this case that's AEG.

    AEG is paying all but $400,000 of the reported $9-10 million/yr. salary for Beckham, and believe me AEG has the money.

    The rest of the reported $250 million over 5 years comes from other things like Beckham getting to keep 100% of his image rights, sponsorships, etc.

    Relax.
     
  7. RDriesen

    RDriesen New Member

    Jul 15, 2006
    Ohio
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    yea, there is no way that they are giving him 50 a year. just doesnt make any financial sense to do so, no matter how much of an impact he will make. it wouldnt offset that ;). heck even overpaying for guys you could get a team or 2 of players from the epl for that ;)
     
  8. PhantomTollbooth

    PhantomTollbooth New Member

    Jul 20, 2004
    Appleton, WI
    Club:
    Chicago Fire
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    That's my guess too -- the ~50 mil a year must include the image and endorsement rights which he was sharing with Real Madrid. Beckham at $10 million/year seems fine. Beckham at $50 million a year would be foolish.
     
  9. Brian in Boston

    Brian in Boston Member+

    Jun 17, 2004
    MA, RI and CA
    Re: MLS Economics 101

    Today. Maybe tomorrow. With another temporary "spike" surrounding his first couple of matches with the Galaxy. Beyond that, this move - and MLS - are a non-story to 70+ % of American sports fans.
     
  10. MarvelousNTx

    MarvelousNTx Member

    Jan 11, 2007
    Arlington --AggTown
    Club:
    FC Dallas
    Nat'l Team:
    United States
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    from the other post looks like he's being paid just shy of $10 million a year which to me is still ridiculous.

    HERE'S A BIG QUESTION. HOW MUCH IS RONALDO, ZIDANE, AND PETER NEDVED GOING TO COST?

    Does anyone remember what happened to that league that used to overpay players that had Pele, and Breckenbauer in it. I think they played in NY. Yeah, that league.
     
  11. kenntomasch

    kenntomasch Member+

    Sep 2, 1999
    Out West
    Club:
    FC Tampa Bay Rowdies
    Nat'l Team:
    United States
    Re: MLS Economics 101

    Down from 95% yesterday. :D
     
  12. DaPrince84

    DaPrince84 Member+

    Aug 22, 2001
    MD
    Club:
    Arsenal FC
    Nat'l Team:
    --other--
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    here is my issue... if you are gonna pay that much for him... why not just transfer him over now... like literally, pay a transfer fee now and bring him here instead of playing this game with the salary?
     
  13. rocketeer22

    rocketeer22 Member+

    Apr 11, 2000
    Oakton,VA
    Club:
    DC United
    Nat'l Team:
    United States
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    I wonder about the fact that Simon Fuller is involved. He has talent under contract and AEG has facilities to display that talent (sporting, music, otherwise).

    This is just supposition, but I wouldn't be surprised if Posh Spice ends up as one of the 'judges' on American Idol. Perhaps they'll name a street after her. Oh, wait, HDC already has a Victoria Street ;)
     
  14. riphamilton

    riphamilton Member

    Jun 17, 2002
    Connecticut
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    some perspective

    the Beckham contract is the highest ever paid in professional team sports. the second highest is A-rod when he signed with the Rangers for 10 years/$252M.... this is more than double that. full list: http://en.wikipedia.org/wiki/List_of_largest_sports_contracts

    the contract has to include image rights. although we'll get sick of seeing his face, it better be on every billboard and tv commercial in this country.
     
  15. Hartlepool

    Hartlepool New Member

    Jan 19, 2006
    Dallas
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    I think the signing is great for the league but I agree there are worries there. I dont think anyone wants MLS to turn into the old NASL where the "haves" ruled and the "have nots" werent competetive. As long as an FC Dallas or Columbus has a chance to realistically sign these types of players then the league is doomed. Dont make this a LA & Red Bull league because they are the huge markets while the other markets slowly die off. The league has been very responsible financially the last decade hopefully that thought has not been lost. I'm all for the Beckhams of the world to MLS just make it fair ground.


    www.soccermogul.com
     
  16. cpwilson80

    cpwilson80 Member+

    Mar 20, 2001
    Boston
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!


    Was this from the earlier salary figure floated around of 4 years/$36 Million? Or was there something that I missed?
     
  17. Neutral Fan

    Neutral Fan New Member

    Dec 27, 2000
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    The David Beckham signing is the head line on the Drudge Report.

    Aaron
     
  18. Andy_B

    Andy_B Member+

    Feb 2, 1999
    Nat'l Team:
    United States
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    Remember that MLS would like to make back a large portion of the ~$40M in a year in image rights. This is NOT akin to the AROD deal which was all salary.

    Andy
     
  19. Chowda

    Chowda Member

    Sep 13, 2004
    Rhode Island
    Club:
    New England Revolution
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    He wants a summer holiday first. He isn't coming until August by most reports.
     
  20. PsychedelicCeltic

    PsychedelicCeltic New Member

    Dec 10, 2003
    San Francisco/London
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    Bollocks. Baseball set an attendance record last year.
     
  21. lond2345

    lond2345 Member

    Aug 19, 2002
    USA
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    THIS IS AN OUTRAGE! AN OUTRAGE!

    With that type of money every team in MLS could buy a Christian Gomez quality player, hell you could have more than 1 for each MLS team! you could raise the salary cap enough to have every team in MLS afford a 3 mill quality south american player.

    This is the end of mls.
     
  22. tab5g

    tab5g Member+

    May 17, 2002
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    that's one view.

    but i'm not sure that it is the correct or whole story. Becks probably is worth 8-10mil a year to AEG/MLS as a player (just because he brings so much with himself -- ticket sales will be solid where he goes, LAG can charge more for season tickets, LAG can tour internationally to bring in revenue). he'll make "image" money off of himself and his name, and while he's doing that, MLS will be along for the ride for some type of rise in profile/popularity.

    for every quality "Gomez-type" player that could be brought in, the league and it's tv partners needs marketable names as well.

    MLS needs both players and faces. Beckham can be one, if not both of those things.

    the players will still be here, and the league will grow and have more money to bring in more talent. for now (and under the strict controls of the DP rule) this seems like a smart move.

    we'll see how it plays out.

    but at the end of the day (or the 5-year contract), the quality on the field needs to be there. Beckham should be able to bag some goals in the league as he lines his pockets.
     
  23. SoccerScout

    SoccerScout Member

    Jan 3, 2001
    New Jersey, USA
    Club:
    Internacional Porto Alegre
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    The most telling thing is that on ESPN.com the big headline is BONDS.
     
  24. DaPrince84

    DaPrince84 Member+

    Aug 22, 2001
    MD
    Club:
    Arsenal FC
    Nat'l Team:
    --other--
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    here is the breakdown of the deal... he is not recieveing that much money from MLS:

    http://edition.cnn.com/2007/SPORT/football/01/11/beckham/index.html

    His total package is reported to be one of the biggest in global sport and with spin-offs "Brand Beckham" could earn more than $200 million (103 million pounds) over the duration of the contract.

    L.A. Galaxy have reportedly offered Beckham around $3 million-a-year (1.55 million pounds), but the 31-year-old will have full control of his world-wide image rights which could bring in another $39 million (20 millions pounds).
     
  25. MarvelousNTx

    MarvelousNTx Member

    Jan 11, 2007
    Arlington --AggTown
    Club:
    FC Dallas
    Nat'l Team:
    United States
    Re: 5 years $250million- THEY WERE KIDDING RIGHT?!!!!!

    I'm still confused as to why L.A would enter into such a ridiculous deal. Hey Shaq, here's 10 million a year, and you get to keep 100% of your imaging. ARE YOU KIDDING!!! That kinda of mess doesn't exist in sports apparently unless you're a benchwarmer in Spain from England. This just seems like an awful lot to concede for David Beckham. Are they trying to turn L.A into the Real Madrid of MLS. Big name, big money, no titles.
    Bad move for L.A, bad move for MLS.
     

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