David Beckham shocked the world when he left Real Madrid in 2007 to earn more than $500 million

Let’s start in 2007. David Beckham is on top of the world. He is married to Victoria Adams from the Spice Girls and has spent the last 15 years playing for Manchester United & Real Madrid. But then he shocks the world and signs with the LA Galaxy of Major League Soccer.

Many people thought Beckham was an idiot. He was just 31 years old and agreed to take a 70% pay cut (from $20 million to $6.5 million) to head to a league that was barely ten years old. But those were just the headlines — the details of the contract were much more lucrative.

Beckham was able to negotiate a percentage of all team revenue as part of his contract in LA. That included everything from merchandise, tickets, and sponsorships, all the way down to the hot dogs and beer sold at games.  And it *drastically* increased his overall earnings.

In total, when you add up salary, endorsements, and revenue share, David Beckham made ~$255 million during his 5-years with the LA Galaxy in MLS. That’s $50M+ annually — and it made him the world’s highest-paid player. But that’s not even the best part.

Beckham also negotiated the right to buy an MLS expansion team for $25 million upon retirement. This was 150% higher than the $10 million fee Toronto FC had just paid to join the league, so it didn’t initially seem like a big deal. But as they say, things change with time.

David Beckham brought immense growth to MLS. Attendance is up 40% since his arrival, and MLS has seen its annual TV deal go from $8 million in 2006 to $250 million today — that’s a 3,025% increase. And more importantly, the league has expanded.

MLS expansion fees have drastically increased. Recent Expansion Fees • NYC paid $100M • Austin, Cincinnati & Nashville paid $150M • St Louis paid $200M & Charlotte paid $325M So when Beckham exercised his $25 million option upon retirement, he received a MASSIVE discount.

David Beckham’s team, Inter Miami CF, officially played its first game on March 1st, 2020. And here’s the craziest part: Inter Miami CF is already the 10th most valuable MLS club at $585 million. That’s 2,240% more than the $25 million expansion fee.

In the end, the numbers don’t lie. David Beckham took a huge risk and was rewarded by turning his $6.5 million annual MLS salary into more than $500 million. But MLS also benefited — attendance, TV rights, and valuations are all up big. That’s a win-win for everyone.