When David Beckham decided to leave Real Madrid and move to LA Galaxy in 2007, he was heavily criticized. But little did people know about his amazing business plan. So, lets take a look at how did David Beckham change MLS?
We all know David Beckham. We have all seen his boards and posters here and there. He was one of the most recognized players of his generation. He started his career with Manchester United and holds the status of a legend there. He also played for Real Madrid, winning the La Liga with them. After his stint with Real Madrid, many European clubs were interested in getting him to join their teams. He was 31 years old at the time and still had a lot to offer.
When he announced his move to the Major League Soccer (MLS) team LA Galaxy, everyone who follows football was shocked. Why would he go to a league which a lot smaller than the European counterparts? And why would he go to play in a country where football was not so popular. Well, that is where his brilliance lies.
David Beckham was earning $19m with Real Madrid but decided to take a huge pay cut and join LA Galaxy, where he would earn $6.4m a year. He took a pay cut of about 70%. At the time when he joined MLS had a salary cap of $2m, they had to create a new rule just for him. The ‘Designated Player Rule’ also commonly referred to as the ‘Beckham Rule’ was introduced so that the teams could sign up to 3 players above the salary cap. This also paved the way for future stars like Zlatan Ibrahimović, Thierry Henry and Kaká to join the league.
Beckham also signed a lot of deals with brands and sponsorships. He also had a clause in his contract where he would earn a percentage out of his sale that the club made. Each jersey or mug that they sold, Beckham made money out of it. Over his time with the club he earned around $252m. Which, I guess was not such a bad thing after all.
But the most important clause in Beckham’s contract was that he could buy an expansion team in the MLS for just $25m. This changed everything.
Back then people thought that MLS was just a tiny league which no one would really watch, but Beckham saw the bigger picture. He knew about crazy people were for sports in the USA. NBA, NFL were big leagues and the players were nothing less than icons in the country. Beckham envisioned that he could do the same with football.
Beckham knew that his arrival would pull a lot of eyes towards the league and he was right. Joe Pompliano tweeted that since his arrival the attendance for the games went up by 40% and TV rights went from $8m in 2006 to $250m in 2006. Many big European players also started looking at the MLS as a place where they could play.
Shortly after his retirement Beckham triggered the clause and decided to bring in his own team. MLS approved Beckham to start Inter Miami in 2018. The craziest part was that he did for only $25m. The newer expansion teams which came in around the same time had to pay a huge sum of money. St. Louis City SC had to pay $200m while Charlotte FC had to pay $325m.
By 2020, the cost to start a new expansion team was estimated to be between $300m to $700m. Inter Miami played their first game in 2020 and were already valued at $585m, which was the 10th most valuable club in the MLS.
Beckham brought in the European culture to the club where its considered that the club is a part of the local community. The name Club Internacional de Fútbol Miami speaks about the people of Miami, about 70% of them have Latin or Hispanic background. The logo is also a portrayal of the city of Miami. He started an European style youth academy so that the local talented could be nurtured.
With all that said, the biggest move of them all was bringing in Lionel Messi to Inter Miami. A player who is one of the best in the world. There were rumor’s that Messi might move to Saudi Arabia and play against Cristiano Ronaldo. It was also said that he would be paid more than $1bn. But finally, Messi moved to Inter Miami. It was a masterstroke by Beckham. The football scene in the USA went wild. With Messi joining the club, its valuation is now estimated to have crossed $1bn.
People will always remember the MLS and refer to its time as Before Beckham and After Beckham. Say what you will but the man changed the sport in the USA. He purchased a club for only $25m only for it to be valued at more than $1bn a few years later. Just like King Arthur, the movie in which Beckham played a role, although a different one, with this investment he achieved kingly status in football.
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