Soccer icon-turned-sports mogul David Beckham took advantage of a clause in his Major League Soccer contract to establish a $25 million sports franchise 13 years ago, which Forbes now values at a whopping $1.2 billion.
Beckham Was Going to Become ‘Half A Film Star’
Beckham shocked the sports world, and even his own mother, when he left Europe’s big soccer leagues to join the LA Galaxy in 2007. The MLS was only 13 years old at the time, and crowds were often sparse, while some questioned the real motive for the switch.
After leaving Real Madrid for the U.S., President Ramon Calderon publicly lashed out at Beckham. Beckham was going to Hollywood to become “half a film star,” Calderon reportedly said.
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But hidden in Beckham’s contract was the option to buy an expansion franchise for $25 million, which he exercised in 2014, establishing Inter Miami. A team of business partners joined him in the deal, including local businessman Jorge Mas, who had unsuccessfully tried to buy the Miami Marlins baseball team. Masayoshi Son, CEO of Japanese tech giant SoftBank, was also involved in the deal.
Beckham Has The Last Laugh With Savvy Business Moves
Beckham has since resoundingly answered his critics as the $25 million deal looks like a steal. Billionaire Mohamed Mansour and his business partners had to pay a record-breaking fee of $500 million for the new San Diego FC expansion team, according to the New York Times.
As Beckham’s vision continues to be fulfilled with the club moving into a brand new stadium, one of his savviest moves was to tempt another of soccer’s superstars, Argentine Lionel Messi, to play for Inter Miami.
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“Thirteen years ago, I announced Miami was my choice. We had no name. We had no fans. We had no stadium,” Beckham was quoted as saying by ESPN, as the stadium hosted its first match. “We are champions of the MLS. We have the best player in the history of the game playing in Miami. Dreams really can come true.”
The club has gone from strength to strength with Beckham’s guidance, and Forbes said that Inter Miami now has a revenue of $180 million, with $50 million of operating income, while it attracts major sponsors like Adidas.
However, it is still Beckham’s former club, Real Madrid, that tops the list of the most valuable teams in the sport with a valuation said to be $6.75 billion. Alongside the NFL’s Dallas Cowboys, Real Madrid is one of only two sports teams to have crossed the $1 billion revenue barrier.
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