Beckham First To Get Club Stakeholding

David Beckham is believed to become the first active footballer to have a
stakeholding in his club as the exact details of his new playing contract for LA
Galaxy begin to come to light.

The reported contract clause, which will see him take a share of the club
profits which could amount to as much as $10m a year, will catapult Beckham up
the global list of highest earning sport stars – a list dominated by athletes
from US sports.

When he moves from Real Madrid to LA Galaxy at the end of the season, Beckham
looks set to earn a total of $55m a year in total.

This figure comprises of an annual salary of $10m; existing sponsorship
contracts with his four sponsors – Motorola, Pepsi, Gillette and Volkswagen –
worth approximately $25m; his cut from merchandising shirt sales expected to
generate around $10m; as well as the $10m derived from his reported shareholding
in the club.

Beckham’s agent, Simon Fuller of 19 Entertainment who holds rights to the
Beckham brand, has claimed that the contract is the biggest sporting deal ever.

This may be true in terms of a single commercial contract but whether the
move to the US will see Beckham overtake golfer Tiger Woods as the highest
earning sports star in the world on overall annual earnings is a matter still up
for debate.

For more on the pros and cons of this argument, which has caused heated
debate in the Sport Industry Group office, read this week’s Sport Industry Group
column.