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

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

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  1. The Cadaver

    The Cadaver It's very quiet here.

    Oct 24, 2000
    La Cañada, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    If for no other reason than the bulk of them will be unlicensed rip-offs made by the world's center for copyright and trademark infringement.
     
  2. superdave

    superdave Member+

    Jul 14, 1999
    VB, VA
    Club:
    DC United
    Nat'l Team:
    United States
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Because in addition to being fans of a particular team, I'm a fan of the league and I want to see the league grow and improve, and part of that is being interested in league business.

    I mean, when Newcastle bought Owen, I'm sure that their fans discussed whether or not buying such an oft-injured but talented player was the best use of the club's money. Nobody thought that odd.
     
  3. golazo68

    golazo68 Member+

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

    If its not clear, I didn't start thread so that people could justify for themselves.

    I thought it would be more a cost/benefit analysis (a la what I'm sure AEG did). Our own little white paper, if you will.

    Of course, that got sidetracked early here. Shocker! :eek:
     
  4. joehill

    joehill Member

    Sep 28, 2005
    brooklyn
    Club:
    DC United
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread


    this would be a huge bummer if they do this, and he doesn't come until June, and the 1 LA road game for that team is in April or May.
     
  5. Nico Limmat

    Nico Limmat Member+

    Oct 24, 1999
    Dubai, UAE
    Club:
    Grasshopper Club Zürich
    Nat'l Team:
    Switzerland
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    What do you think a Michael Jordan move to Barcelona's basketball team would have done to his jersey sales?

    Beckham's status is being downgraded with this move, it's as simple as that. World opinion will commence to think of him as a "has been." Someone who first lost his place on the English national team, then his starting spot at Real Madrid, and then finally transfered to a developing league far away from the European game. This isn't quite the "football glamour" the Asian plastic fans are looking for when buying their next jersey.

    It has to be a star player on big club, only then does the glamour image these "fans" are looking for come together.
     
  6. The Cadaver

    The Cadaver It's very quiet here.

    Oct 24, 2000
    La Cañada, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Unless you want LAG season tickets. The front office has been very closed-mouth about the prices for next year. You can put down a deposit but the prices will be announced later "pending developments." I would be willing to wager that if the Beckham signing does come off, prices are unlikely to go down.

    FWIW: As a season ticket holder, I had the chance last year to put down a deposit that would lock in the 2006 prices for 2007 as well. I did, and that may be the best financial decision I have made in recent years.
     
  7. Chris M.

    Chris M. Member+

    Jan 18, 2002
    Chicago
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    MJ sales probably wouldn't have been big in the US, just as Beckham jerseys won't do that well in England, but I am guessing MJ Barcelona shirts would have done pretty well in Spain, Asia and other places. Not Bulls quantities, but nothing to sneeze at. Hell, Pele Cosmos shirts still sell on retro sites, and we had to drag his ass out of retirement to play. :D

    Yes, Beckham will fall off the radar a bit, but I really think "washed up" is too strong and that his fans will not view it as the practical end of his career. Particularly when you have teams like Arsenal saying that they would love to take him on.
     
  8. appoo

    appoo Member+

    Jul 30, 2001
    USA
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Well, you look at AEG and they have a portfolio of different sporting ventures. I believe they built the Staples center and have other such investments.

    The Cost benefit of Becks? AEG has a large investment in Soccer in USA. They bought Beckham, I think, with an eye on future generations of soccer players and soccer fans.

    Add into Hollywood. What happens if Beckham goes mainstream in LA? What happens if The Galaxy become one of the fashionable professional teams in LA? For now, they only have 1 - The Lakers, 2 if you include USC. The Brand increase alone, for that kind of thing, I think would match the cost of Becks.

    The benefit of Beckham is that you add to the pool of soccer fans in America, a generation down the line.
     
  9. appoo

    appoo Member+

    Jul 30, 2001
    USA
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    that would be unfair. AEG can easily swallow the cost of Beckham. I hope they wouldn't significantly increase season ticket prices
     
  10. appoo

    appoo Member+

    Jul 30, 2001
    USA
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    This has little to do with the League itself, and more to do with the Galaxy and AEG.

    I don't see much value for MLS itself. No one is going to be tricked into thinking MLS is great because Beckham plays for the Galaxy. What they will think is that the Galaxy are determined to entertain.
     
  11. Nico Limmat

    Nico Limmat Member+

    Oct 24, 1999
    Dubai, UAE
    Club:
    Grasshopper Club Zürich
    Nat'l Team:
    Switzerland
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Spain Yes - Asia No.

    As plastic as some of the Asian fans are, they are not mindless consumers that will just buy anything with Beckham on it.

    Beckham is not irreplaceable. They will find somebody else to adore, I have no doubt about that...
    A bit? He likely won't even be on English NT to remind the global sports fan he still exists.

    So what if people reading fashion/gossip magazines remember him a bit longer, they won't spend their money on the sport.

    I honestly think some people have very unrealistic expectations with this whole Beckham saga.
     
  12. The Cadaver

    The Cadaver It's very quiet here.

    Oct 24, 2000
    La Cañada, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Which, BTW, is something LAG have done damned little of for three years running.
     
  13. av8tor

    av8tor New Member

    Nov 7, 2006
    Fuera del pais
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Now, about those $8 hot dogs and $15 beers....;)
     
  14. golazo68

    golazo68 Member+

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


    I don't think you have a freakin' clue about how LA works either
     
  15. appoo

    appoo Member+

    Jul 30, 2001
    USA
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    one of the reasons I don't really like Single Entity is that it gives no real incentives for clubs to go above and beyond to try and build a better product. Before this Beckham Rule, a club had to sacrifice some part of their team, to dedicate a % of their Cap on a particular player, players, or position.

    Now teams have a bit more flexibility. They can sign a Max player and combine him with upto two DPs.

    If I'm an owner, I now go on a full-scale attack on my local market with ads and campaigns. And I coincide that with a star player. In America, it's the teams that go mainstream that do the best, not the ones that necessarily win championships.

    You can't go mainstream if you can't entertain.
     
  16. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Yeah, but it isn't news and analysis, so I'm gonna move it over to general.
     
  17. Juan Luis Guerra

    Juan Luis Guerra Red Card

    Jun 11, 2001
    New York City
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    you like to dream. Where did you get that 4year=36 millons???????????????????????????????????. You lied to us.
     
  18. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
  19. uclacarlos

    uclacarlos Member+

    Aug 10, 2003
    east coast
    Club:
    FC Barcelona
    Nat'l Team:
    Spain
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Wow!!!!

    You mean a meteoric rise in overhead won't have an effect on the consumer????

    Are you f'ing serious?????
     
  20. uclacarlos

    uclacarlos Member+

    Aug 10, 2003
    east coast
    Club:
    FC Barcelona
    Nat'l Team:
    Spain
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    To a degree, sure. Becks going to Inter or Arsenal or Bertha will sell many more shirts than if he goes to the Galaxy.

    But I think you're downplaying Beckham's popularity and how it transcends sport. Simply put, the guy is still one of the most attractive men on the planet, and that sells.

    Still.
     
  21. uclacarlos

    uclacarlos Member+

    Aug 10, 2003
    east coast
    Club:
    FC Barcelona
    Nat'l Team:
    Spain
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    Just to relate 2 quick vignettes about the impact that Becks would have on the LA sporting/pop culture scene:

    Story 1:
    A friend of mine used to be a bad ass concierge at a high profile Beverly Hills hotel after several years in a high profile Hollywood hotel. She was seriously amazing at culling gossip and would never, ever tell. She would just drop cryptic hints about something and then when it came to fruition, just smile.

    A.) Over X-mas break she confessed to being really bummed that she switched careers and is no longer in the loop to be able to confirm the seriousness of the Beckham rumors.

    B.) She also lamented no longer having access to high profile clients to be able to get VIP passes to Galaxy-related stuff.

    She said this unsolicited not knowing that I'm a huge Galaxy fan.

    Story 2:
    A family friend used to have 4th row Laker season ticket seats. These are a H-UGE commodity in LA. He unfortunately lost the seats due to a major lawsuit and an employee stealing a truckload of money.

    Not only was he pissed that he had to give up the seats b/c he's a huge Laker fan but b/c he no longer has the same political and economic clout to leverage those seats w/.... LA Galaxy/Beckham stuff in case it comes through.
     
  22. appoo

    appoo Member+

    Jul 30, 2001
    USA
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    an overhead to the Galaxy - yes.

    another investment for Phillip Anschutz? no.
     
  23. golazo68

    golazo68 Member+

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

    Quick and dirty- I could see where $9 million a year is 'justifiable;

    First 2 years

    - $7 per ticket gain x 22,000 (previous attendance) x 15= 2.5m
    - 2,500 fans per game increase x $30 per head x 15= 1. 225m
    - $3m a year shirt sponsership deal (RSL got $1m)
    - $1m franchise value gain (2 other Anschutz franchises, per year)- $2m
    - $1m for TV rights to Galaxy games in rest of world
    - $1m gain from xtra shirt sales (50k per year x $20 net)


    Sure, that's dirty calc, but that's a +1.75 m profit a year on the transaction

    Last 2 years

    - Lessen shirt sales, franchise value gain and 1.75m gain per year/first 2 years is offset (this is my fudge factor).


    * I think there is a million other ways to raise the revs, including add'l games, etc., but if they can reach this simple calculation, its pays for itself.

    Definently think this is doable.

    Brilliant move by MLS at the right time. Let's just hope Becks doesn't hold out for more.
     
  24. golazo68

    golazo68 Member+

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

    http://www.latimes.com/sports/la-sp-beckham11jan11,1,262055.story?coll=la-headlines-sports


    (Indepedent) Holy crap. There's a big kernel:

    Real Madrid had a 50/50 deal w/Beckham on image rights.

    This deal is even more a 'no-brainer' than before. Even if Anschutz cuts that to 75 (Beckham)/25 AEG, this deal works!

    Now it all (mostly) makes sense:

    - Adidas is paying the $3m or so for the jersey rights

    - AEG will do, say, an 75/25 deal w/Beckham on the image rights- which I am assuming means endorsements (or something like).

    With even a 25% stake, that should mean a couple mil for AEG a year.

    The rest goes nice with the napkin MLS numbers I posted.

    Beckham gets his $9m a year, + likely a better deal on the image rights.

    ^^^ Even if some of this moves around, you can see where this falls in place to make sense...mostly ;)
     
  25. krayzie

    krayzie BigSoccer Yellow Card

    Dec 13, 2003
    Paris, France
    Re: The 'let's financially justify 4 yr/36m for Beckham' thread

    All that money for Beckham is just insane

    with all that money thrown away, MLS could have a world class youth system that would provide top american players to MLS constantly NOW, just like in France ...

    This Beckham rule will end just like the Iraq war : failure
     

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