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

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

Have you not noticed this deal has nothing to do with youth soccer, or the Iraq war, or France. This is a marketing deal with a pretty good soccer player as a side product. Beckham wants to increase his (and his wife's) long term celebrity status and AEG is positioned to take advantage of that.

 

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

Posted by a guy in France. Go figure. How about trying to stay on topic?

 

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

The money is a large amount, but do you think that with $36 million MLS could build a top class youth system overnight? No. By signing Bexs you get more for the money; world-world marketability and a sudden intrest for the game all around the US.

 

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

so 78 posts later and we still have not justified this investment in Beckham?

the reason why beckham is a good choice besides the player aspect, is that he is a marketing icon that the not-so-soccer savvy americans can identify with. This is because the american sports conscious lags terribly behind when it comes to soccer. Its just like most americans know who Cobi jones is and if you ask a casual american sports fan about if he knows any soccer players it is unlikely you will hear Pele, Maradona, or Baggio. So i think that the investment is justified...i mean :SHIRTS, TALK SHOWS, ADS, ADIDAS ADS, TICKETS, YOUTH BECKHAM ACADEMIES, etc...so many money opportunities

 

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

This deal is directly related to the youth system. Simply because the youth system cannot produce world class players.

If the the youth system was extraordinary prolific and effective in US, MLS would never think about overpaying a player like Beckham.

In fact America cannot produce a player like Beckham... Youth system is a HUGE issue that won't be fixed by overpaying an overated british player...

Wake up AMERICA, Beckham is not a great player, he's not Zidane, no Ronaldinho, he won't amaze you with his fancy tricks and skills... Stop dreaming. Beckham's popularity in US is due to ignorance and over mediatization of the EPL...

Who fuc*ing cares about his celebrity status... His celebrity status is long time gone...

 

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

Klinsman to coach the nats looked all but certain at one point, too. let's not go congratulating each other just yet.

 

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

Let's just hope that MLS isn't cutting off its nose to spite it's face...

Clearly the designated player rule is a GOOD thing. Clearly raising the image of MLS and importing star players is a GOOD thing. Hopefully, the star players will also bring up the quality of play. I hope that's MLS' intent also. However, exporting our own talent is a HUGE mistake. Letting go of Dempsey, Wolff, Convey etc..is only good for the individual players..not the league or OUR entertainment dollar.

I want to go and see quality players play. I want to see exciting games. But, I also want to see American players stick it to the star players. I want to see a one on one with Beckham against Sharlee Joseph, etc. But, it won't happen if we let our players leave...

Why do they leave?
Well..$$ certainly is one reason and I don't disagree with the player one bit. Go where the $$ is..plain and simple. However, Dempsey made it clear, he also wanted to go somewhere where the regular season meant something. Where each game, day in and day out, was played because there was a purpose. He wanted excitement and electricity in a stadium filled with fans that were more interested in Fulham beating Man U, than just going to see Rooney and Ronaldo come to town. Here is where I hope MLS is heading.

I hope Beckham signs with LA. It will just give us in the fort someone else on the Galaxy to boo, along with Donovan when they come into Foxboro. We need that in MLS. It's not going to the games and applauding a nice pass by Becks that's important..it's getting on him and hoping he messes up, so our team can win. And by exporting great talent like Dempsey, Wolff and Convey, they get to give someone else the value for their entertainment $.

So, it's safe to see that financially, it's great for LA and for MLS. However, let's not hope that this is a saviour. Even the great Pele couldn't save the NASL from doom. Keeping our young stars, paying them good $$ and bringing in quality star players will eventually make MLS the league that everyone will want to go play for.

Now if they can just adjust the schedule to fall(winter)spring like the rest of the world, and leave the summer for tournaments and friendlies..it will make the ability to attract the stars much better..and then make the regular season REALLY mean something...all those things will make for better quality action..happier players and ultimately, satisfied fans.

 

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

<politics>Too bad the Iraq war didn't cost only $36 million dollars. The amount it cost would have stopped world hunger i think... </politics>

 

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

This happens w/ every country except Spain, Italy, England and Germany.

That's the financial and psychological reality.

I'm all about listening to the player and all, but this wreaks of poor understanding of the true draw of a Big Four European league for a player:

• soccer is #1 sport in those countries
• media attention and fanatical fans raise the intensity level
• top athletes in the sport
• a LOT more $$$ involved, which makes the stakes higher and ups the intensity

If EPL or La Liga were to switch to playoffs and no promo/releg overnight, it's not as if magically all the intensity would dissipate. That's simply not the source of a lack of intensity in MLS. It contributes -- or rather, a too high % of teams being playoff bound -- but that's not the source of MLS's problems.

By extension, the source of the excitement of Euro soccer lies elsewhere.

Bullcrap.

And don't hold your breath for a schedule that goes through a US winter.

Simplistic.

About the only league where players bring it every. Single. Game.... is Mexico. And that's due to parity and a system that enforces parity w/ a strong hand. Ppl forget that mid-table and below teams in the big leagues play w/ a fatalistic view of the world/league/sport. That doesn't make for "exciting" soccer.

 

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

What kind of revenue as a company did the Galaxy have in 2006? $20 million?

 

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

Fixed your post.

 

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

Does this mean no Christmas Carols in the stands?

O Come Ye Norteños
Joyful and triumphant
O come ye, O come ye
To Washington

That's gold carlos, gold!

 

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

No offense but other than ticket sales those numbers are pure speculation. And the revenues do matter because as it is now a contract of $9m / year likely represents a HUGE chunk of the Galaxy's revenues. If the Galaxy brought in $18m in revenue last year, they're looking at sinking 1/2 of that into one player. Will revenue increase? Sure but things like shirt sponsorship are shared with the league. And a lot of what future revenues are to come in are likely to be reduced because Beckham wants at least 50% of revenue from his image rights. More so, it stands to reason that a sexy Beckham at the top of his game will garner more world-wide interest and revenue than a sexy Beckham that's perceived to be in decline and having moved to a backwater of soccer. Also, If AEG still owned the Metrostars and DC United it would make more sense since they'd be raising the values of those teams. But why would AEG put so much of their money into increasing other people's investments?

How much money the Galaxy are bringing in right now is going to have mroe of an impact on much AEG is actually able to offer than how much he'll increase revenue. Especially when it's very questionable how much that would actually be.

Has Addidas made any noise about any sort of a marketing deal that would actually end up offsetting a big chunk of these wages? The rumor on Reyna is that NYRB may be able to get him at league max with Red Bull inking a marketing deal with him that would help to offset the loss in wages he's facing if he leaves Citeh.

 

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

big question is, since Beckham confirmed a 5 year deal, what is the money involved in that?

Edit: Per Reuters, "The deal is reported to be one of the biggest in global sport with Beckham set to earn more than $250 million over the duration of his contract."

Holy shit that would be $50 mil a year if it's only salary they are talking about. That's one hell of a lot bigger than we have talked about...

 

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

I bet it's a 90/10 split. They would be silly to give away ALL rights. 90/10 would be $39mil per season. X 5 would be $195 mil, add on $9 mil per year in salary for $45 mil and you are at $240mil, in the ballpark.

 

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

Sure it sells. I just don't see Asian sport shops stockpiling Adidas LA Galaxy jerseys, that's all.

Will some (original, not knock-off) jerseys be sold? - Sure.

Will it be enough to deserve a mention on this "financial analysis" thread? - I very much doubt it.

 

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

Ok... I tracked down the KC feasibility study.

http://www.sportkc.org/news/documents/SoccerFinalReport9-29-05.pdf

According to it, 30% of ticket revenue is sent up to MLS HQ to pay player salaries.

So the HDC with 27,000 seats and 16 home games per year gives total attendance at 432,000.

They get to keep 70% of that revenue, so to cover Becks' salary on ticket sales alone, they would have to increase ticket prices to average around $165 per ticket.

Now, jersey sponsorship will offset a couple of million a year, and I'm sure they'll jack up rates on in-stadium advertising, but most of that is probably already under contract at previous rates.

They'll be able to ask for a larger rights fee for local TV, but that's a drop in the bucket.

 

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

What the $250 Million figure that CNNSI reports??