Business Like Beckham

78% of professional athletes go broke 3 years after retirement.

Yet, 11 years after his retirement, David Beckham continues to pull in approximately $45 million annually.

The global Football superstar currently has a net worth eclipsing half-a-billion dollars, but there’s more to this midfielder than just half-field goals (seriously, if you haven’t seen it, check it out here).

Here’s the kicker - only about 30% of the English Footballer's net worth came from his career salaries.

Let's dissect the playbook of this soccer legend-turned-business tycoon and uncover the strategies he used to build his multi-million-dollar empire.

Who is David Beckham?

David Beckham is a renowned English footballer (or “soccer” as we call it in the States, much to the confusion of the rest of the population) whose name is synonymous with the sport's history and culture. 

Beyond the pitch, Beckham gained global recognition for his marriage to Victoria Adams, famously known as "Posh Spice" from the iconic pop group Spice Girls.

Beckham's football career began at a young age. Born in 1975 in Leytonstone, England, he quickly rose to prominence when he joined Manchester United at just 17 years old.

From 1992 to 2003 he became a dominant force in England’s Premier League, contributing significantly to Manchester United's success. 

In 2003, he made a groundbreaking move to Real Madrid in Spain’s La Liga, one of the most competitive domestic football leagues in the world, further solidifying his status as a football icon.

Despite a shorter stint and less success with Real Madrid, Beckham continued to make headlines once again in 2007 when he moved to the US to join the Los Angeles Galaxy. 

This move was met with skepticism. At the tail end of his physical prime, Beckham not only took a substantial pay cut but also transitioned from one of the best leagues in the world to an inarguably less competitive environment.

This move could have been compared to if Anthony Davis suddenly decided to take his talents to the Shanghai Sharks next season.

But the world was wrong. This decision marked the beginning of Beckham's transition from football star to savvy businessman.

Let’s break down how this move was the start of his half-a-billion dollar empire.

What is David Beckham’s Net Worth?

Being the superstar he was, he attracted many lucrative endorsements from some of the world's biggest brands. 

Throughout his career, Beckham inked landmark deals with industry giants such as Pepsi, Gillette, and Armani. Perhaps the most notable being his lifetime contract with Adidas signed in 1998, valued at approximately $160 million.

By partnering with globally reputable brands, Beckham positioned himself to capitalize on the extensive resources and global reach of his new partners, enhancing and furthering his influence.

Despite modest salary figures while playing for Manchester United, his tenures with clubs Real Madrid and LA Galaxy earned him approximately $18 million and $6.5 million per year respectively, bringing Beckham’s total career earnings from salary alone to $145 million.

This makes up approximately 30% of his net worth today, illustrating his transition into business as a significant contributor to the elevation of his $500 million net worth.

David Beckham’s Business Ventures

Inter Miami CF

David Beckham's brilliance was on display to the world when he made his strategic move to the MLS.

When Beckham made the move, critics focused solely on his salary compensation and the fact he was joining a less competitive league, overlooking the fine print in his contract.

A majority of the world didn’t understand Beckham's true motivation was to pave the way for his ownership of an MLS expansion team. 

In a shrewd negotiation with the MLS, Beckham secured a clause in his contract with the LA Galaxy that would grant him the option to acquire rights to an MLS expansion team for $25 million. 

In 2014, a year after his retirement from professional football, Beckham wasted no time in exercising this clause, culminating in the official acceptance of Inter Miami CF into the MLS in 2018.

Leveraging Industry Experience

Beckham strategically positioned himself in the realm of professional sports ownership, an industry he has transferable experience and expertise from his days as a player. 

His leadership has propelled Inter Miami CF to unprecedented heights in the short time since its inception in the league.

Despite stepping back from majority ownership in 2021, Beckham retains a significant 10% stake in the club, now valued at over $1 billion, marking an astonishing fourfold increase on his initial investment in just a decade.

Experienced Business Partners

Co-founding Inter Miami CF alongside the Mas Brothers, Jorge and Jose Mas, Beckham aligned himself with experienced business partners to navigate the complexities of sports ownership. 

Jorge Mas, the elder of the billionaire siblings, boasts seasoned expertise as President of the Spanish football club Real Zaragoza.

Although the Mas Brothers acquired a controlling 90% stake in the club in 2021, Beckham’s influence is still felt throughout the club, evident from the high-profile signing of global football icon Lionel Messi in 2023–who’s contract also included equity in the club.

Beckham's investment in Inter Miami CF has proven to be his most successful venture to date.

Recent estimates suggest Inter Miami CF's valuation has surpassed $1 billion with estimated revenues of $200 million, an all-time record in the MLS–proving that Beckham not only breathed life into the MLS as a player, but as an owner too.

The Fashion and Beauty Industry

David Beckham Fragrances, House 99, and Eyewear by David Beckham

Under his holding company DB Ventures, Beckham has three major investments that fall under the Fashion and Beauty Industry: David Beckham Fragrances, House 99, and Eyewear by David Beckham. 

In these three ventures, Beckham's personal brand serves as the cornerstone of his business strategy. 

These ventures aren't merely product lines; they're extensions of Beckham's identity and style. 

Known as a fashion icon off the pitch, Beckham introduced his inaugural fragrance in 2005, Instinct Eau De Toilette, alongside his trusted licensing partner, Coty.

Not content with merely a solo debut, he swiftly introduced the "Intimately Beckham'' collection in collaboration with his wife in 2006, doubling down and capitalizing on both their personal brands, marking the beginning of their fragrance empire.

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Beckham's most strategic partnership is with his wife, Victoria Beckham, who he says serves as his trusted confidante and sounding board for business decisions. 

As Beckham himself acknowledges, the people you surround yourself with can either propel you to success or hold you back.

In 2015, Coty reportedly generated $100 million in sales from Beckham's signature fragrances, resulting in approximately $6 million in earnings for Beckham.

In 2024, he prepares to unveil his latest masterpiece

Strategic Collaborations with Industry Titans

Beckham was renowned not only for his prowess on the football field but also for his iconic hairstyles. 

In 2018, he ventured into the grooming industry with the launch of House 99.

As someone whose hairstyles were as talked about as his electric goal scoring, Beckham's transition into grooming products was a natural evolution. 

Leveraging his status as a fashion icon, he partnered with industry titan L'Oreal, introducing House 99 as a platform to revolutionize men's grooming routines.

Whether fragrance or grooming products, Beckham's partnerships with industry leaders show his deliberate approach to collaborating with those who have proven success. 

By teaming up with powerhouses, Beckham not only gains access to top-tier resources and distribution channels to not only amplify not only his brand's reach but also ensure that his products meet the highest standards of quality.

Even half-a-decade after retirement, House 99 generated an impressive $50 million in retail sales during its inaugural year, a testament to Beckham's continued excellence beyond the pitch.

Values Aligned

In 2020, David Beckham entered into the world of eyewear, partnering with renowned Italian company Safilo to introduce Eyewear by David Beckham. 

Safilo's expertise in optical engineering perfectly complemented Beckham's vision for the brand.

Inspired by his renowned sense of style, the two collaborated closely to craft sunglasses and frames that exude timeless sophistication.

Beckham's decision to partner with Safilo was intentional, as he states their values aligned with his commitment to craftsmanship and product excellence, a theme we see across all of his ventures.

Problem Solver

Beyond fashion, Beckham identified a practical need within the sunglasses industry, particularly for bikers like himself.

Recognizing a common pain point among bikers—finding sunglasses that fit comfortably under a helmet—Beckham leveraged his brand to offer a solution, immediately finding product-market fit.

Frequently spotted sporting his own creations while biking through the streets of Miami, Beckham showcases the inherent practicality.

Studio 99

In 2019, David Beckham joined forces with David Gardner and Nicola Howson to establish Studio 99, a media company aimed at creating compelling content across social media, television, and film. 

With a clear vision in mind, Studio 99 seeks to produce documentaries that delve into the realms of sports and fashion—two domains where Beckham has undeniably left his mark.

Collaborating with established entities like Uninterrupted, co-founded by basketball legend LeBron James, Studio 99 has embarked on numerous projects exploring compelling narratives from the world of sports.

This venture not only serves as a platform for storytelling but also as a vehicle for Beckham to continue to extend his influence.

Choosing Co-Founders with Shared Vision and Expertise

Beckham partnered with industry veterans David Gardner and Nicola Howson, recognizing the importance of surrounding himself with experienced professionals. 

This partnership not only brings complementary skills to the table but also fosters a culture of creativity and collaboration, essential for media production.

Studio 99 produces documentaries and television shows, already boasting notable releases like the acclaimed Beckham documentary or the film chronicling the life of Ronnie O’Sullivan.

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Additionally, the company is currently airing two engaging television shows, Fever Pitch and Save Our Squad, further solidifying its foothold in the media landscape. 

Through Studio 99, Beckham continues to captivate audiences, demonstrating his ability to remain relevant and influential long after his retirement from professional football.

Haig Club Partnership

In 2014, David Beckham forged a partnership with Diageo, an English spirits company, marking the inception of Haig Club. 

Serving as the brand's ambassador for nearly a decade, Beckham played a pivotal role in shaping its identity and global appeal. 

With reports suggesting Beckham's substantial $50 million stake in the blended whisky brand, Haig Club not only became synonymous with refined taste but also earned the title of the official whisky of Inter Miami CF.

Although the partnership with Diageo concluded amicably in 2023, Beckham undoubtedly gained invaluable insights from a decade of experience, positioning himself for the inevitable launch of his own brand into the competitive beverage industry in the future.

While details about his future investments remain undisclosed, the departure from Haig Club opens the doors for Beckham to expand his empire moving forward.

Endorsements

Beckham recently signed endorsement deals with Tudor and Maserati in 2017 and 2021 respectively.

These partnerships aren't just about sponsorships; they're extensions of Beckham's genuine interests and lifestyle, exemplifying his knack for authentic personal branding. 

Through a quick glance at his social media profiles, followers can see Beckham's genuine love for watches and cars, reinforcing the authenticity of his personal brand and strengthening his connection with his audience.

The Success Strategies of David Beckham

1. Personal Branding Precision: Beckham crafts his brand around his authentic passions, positioning himself as more than just an athlete.

2. Vision-Aligned Partnerships: Beckham strategically partners with like-minded individuals and experienced individuals.

3. Strategic Planning: Beckham is deliberate in setting himself up for success.

4. Problem-Solving: Beckham showcases his ability to identify problems and offer solutions.

5. Playing the Long Game: Beckham's story serves as a testament to the value of patience.

The Bottom Line

Beckham’s success is a culmination of decades of hard work.

His foresight while in the midst of his career led him to his most successful investment to date, keeping him busy as minority owner of Inter Miami CF.

Under DB Ventures, he has established multiple thriving businesses, all anchored by the authenticity of his personal brand. 

His meticulous selection of business partners in each venture virtually guarantees success, establishing him as one of the greatest athletes turned entrepreneurs on the planet.

After his excellent run on the soccer field, Beckham’s diverse business ventures have helped him build an extremely lucrative portfolio, worthy of his half-a-billion dollar net worth.