How Long Before LA Galaxy Go Broke?
David Beckham is receiving $250 million dollars in a league where a lot of players receive the minimum salary of $11,700 and majority of players receiving $100,000 in annual payments.
This is a win-win situation for David Beckham but not for L.A. Galaxy who thinks one man can change the landscape of the sport. How could one man rival sports that feature ton load of superstars — NBA and NFL? Soon enough David playing in a league of below average footballers would not attract a lot of audience big enough to make David Beckham’s salary a sound investment.
David Beckham can only play a year or two of competitive football and after that he’s performance would considerably drop especially when Hollywood and other distractions come to take a toll on his schedule and concentration. What if he gets serious injury and sit out most of their games? L.A. Galaxy would become a laughing stock and could very well be on their way to bankruptcy.
Two years and the league would know how badly of a decision that was. Good work on Beckham though for securing such a lucrative deal. Good luck to you and your wife’s Hollywood and brand career in America.
January 15th, 2007 at 4:46 am
The club will not be paying most of that $250,000,000 contract. His contract with MLS, not the LA Galaxy considering the league pools the contracts and money together, is only for a 1/5 of the entire contract. The rest is other private investors buying the rights to Beckham’s endorsement and brand rights.
Not that this means the deal is good or bad for the MLS, Beckham, and the Galaxy, but the MLS is not taking as much risk as you believe and the Galaxy are taking even less risk.
January 16th, 2007 at 10:14 am
1/5th? Rumor has it that the Galaxy is on the hook for $5m a year in salary. Even the previously rumored $9m is no where near 1/5th. T
The MLS owns the players rights but the league is on the hook for the first $400k of Beckham’s contract. The remainder, whether it’s $4.6m or $8.6m is up to the Galaxy’s owners, AEG.