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SBD/Issue 79/Franchises

Beckham In America: Galaxy Sell 2,000 Season Tickets

MLS Galaxy Increase Season-Ticket Base
By 2,000 After Beckham Announcement
The Galaxy sold 2,000 season-ticket packages “within hours” of announcing David Beckham had signed with the team, according to Grahame Jones of the L.A. TIMES. AEG President & CEO Tim Leiweke said that the team “would not move any of its games from the 27,000-seat [The Home Depot Center], even though Beckham’s debut could attract a much larger crowd to the Coliseum or the Rose Bowl.” He added that the Galaxy will host Premier League champions Chelsea FC this summer, and that the team “will also do a tour of potential MLS expansion cities, using Beckham as a vehicle to gauge fan interest” (L.A. TIMES, 1/12). Of the 46 suites at The Home Depot Center, all but two had sold by Thursday night (L.A. DAILY NEWS, 1/12). While the Galaxy has led the league in attendance the past two seasons, the 20,814 average in ’06 was down nearly 4,000 from the previous year, marking “the first decline in [the team’s] four years” at the stadium (L.A. TIMES, 1/12).

THE WAITING GAME: In California, Luis Bueno reports Beckham “likely will play only eight to 10 games with the Galaxy this year.” FIFA rules “limit when players are allowed to move between clubs in ... different countries to specific times of the year.” One of those transfer windows is open until March 31, but the Galaxy “would have to pay a transfer fee to acquire Beckham now.” By waiting until August, when the next transfer window opens, the team would not have to pay a fee (Riverside PRESS-ENTERPRISE, 1/12).

CASHING IN: In Denver, Greg Griffin writes that because Beckham’s deal including salary and endorsements could be worth $250M, AEG’s Philip Anschutz, whose company owns the Galaxy, “will need to make money from it in any way he can.” Leiweke: “We structured our deal so it involves a lot of other opportunities for David and for us.” Sources said that the deal “immediately increases the value of the Galaxy and Anschutz’s three other [MLS] teams by increasing fan interest in the sport in the U.S.” Leiweke said that the club is “negotiating a jersey sponsorship deal, planning a 2008 Asian tour and designing a new logo.” Leiweke: “AEG has assets all over the globe, and we will utilize David and the Galaxy as part of those other assets” (DENVER POST, 1/12). In California, Scott Reid reports adidas, which sponsors Beckham, and another company are “in a multimillion-dollar bidding war to have their logo on the front of Galaxy jerseys this season” (O.C. REGISTER, 1/12). Galaxy President & GM Alexi Lalas: “This is money well spent as far as we’re concerned for what he’s going to continue to bring to this storied franchise” (BBC America, 1/11).

GLAMOUR FRANCHISE: In California, Paul Oberjuerge writes, “Twenty-four hours ago, the Galaxy was a boutique franchise. ... Today, the Galaxy is a ‘global brand,’ as [Leiweke] immodestly put it” (Long Beach PRESS-TELEGRAM, 1/12). In N.Y., Filip Bondy writes, “The Galaxy will be all over ESPN. They will be the league’s showcase team now, the way the Cosmos were the gem of the NASL back in the 1970s” (N.Y. DAILY NEWS, 1/12). Sports Business Group President David Carter said Beckham’s “ability to generate revenues across the board, his status as a pop icon and as a brand enables him to drive and create more value for [MLS] and [AEG] than simply his performance on the field. He will be the face of soccer” (L.A. DAILY NEWS, 1/12).

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