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Galaxy Shines Thanks to Its Star

SPORTS: One year after Beckham, attendance up 20%.

Los Angeles Business Journal Staff

One year ago, David Beckham’s arrival in Los Angeles was greeted by media coverage so over-the-top it bred a backlash from skeptics who doubted his worth to U.S. soccer.

But now the numbers are in, and it appears the club’s investment is paying off - even as the frenzy over the aging British soccer star’s arrival has faded.

The Galaxy are drawing an average of 25,142 fans to each home game this year at the Home Depot Center in Carson. That doesn’t match the 27,000-fan sellouts every game after Beckham arrived last year, but it still leads Major League Soccer. And it’s a 20 percent increase over the club’s average attendance in 2006.

Moreover, Beckham is even a greater draw outside Los Angeles, helping the Galaxy sell out three of their six away games. That has pushed their average MLS attendance on the road to 27,092, including nearly 36,000 fans who attended a June 19 game against D.C. United in Washington.

“What Beckham has been able to do is bring a non-core soccer demographic into the mix to build the soccer brand here in the United States,” said Jeff Marks, chief operating officer for Premier Partnerships, a sports marketing consultancy.

What exactly the Galaxy is paying Beckham has been all over the map in published reports, but it appears he makes about $6.5 million as an annual guaranteed salary. With incentives, endorsements and other revenue streams it’s possible his income could approach the widely quoted $250 million figure over the five-year term of his contract, though it’s unclear.

Indeed, the Galaxy are attempting to maximize both his value to the team – and the league – beyond simply promoting home and away-game sales.

(The MLS is a single limited liability company, with club operators each holding a stake. The Galaxy and Houston Dynamo are both owned by Anschutz Entertainment Group, a Los Angeles-based company that is part of Denver billionaire Philip Anschutz’s investment company.)

One of the most lucrative plans calls for the Galaxy to schedule more exhibition games on other continents, where soccer is often the No. 1 sport. Last year, the Galaxy scheduled a post-season tour for the first time in its history and continued playing international matches before the 2008 season got under way.

Top overseas teams such as Manchester United and Real Madrid can make more than $1 million in appearance fees in a single “friendly” international match. The Galaxy hasn’t disclosed what it has made on its matches, but despite the high traveling expenses, they are profitable.

More importantly, they present an opportunity to extend the Galaxy’s name at a time when there is interest in the team. Last year, the team drew more than 80,000 to an exhibition match in Sydney, Australia. This year the team is trying to schedule off-season trips to the Middle East and Asia.

“Touring the team is a big part of our business plan. Being relevant internationally opens up many opportunities for our organization,” said Galaxy General Manager Alexi Lalas. “From a business perspective, we are looking to maximize Beckham and his time with the Galaxy, but the real measure will be to look at the positive impact on our brand after he’s gone.”


  February 8 - 14, 2010
LA Business News
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New downtown hotels and a bustling L.A. Live scene are hailed as big convention business boosters.
Owner Back in the Saddle at Santa Anita Race Track
A deal with creditors will allow owner Frank Stronach to hold on to the reins of Santa Anita Park.
Unions Dropping Anchor in Long Beach?
The Port of Long Beach’s use of project labor agreements may maroon nonunion contractors.
Local Latinos Make Chinese Connection
A contingent of Latino officials from L.A. cities overcame culture clash on a recent trip to China.
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