David Beckham's much publicized branding deal with Hong Kong-listed Global Brands Group has "produced its first agreement -- with another clothing line in the same family," according to Jennifer Hughes of the FINANCIAL TIMES. The former England footballer and GBG promised a "first-of-its-kind" joint venture when they agreed late last year to the partnership, named Seven Global. On Wednesday Seven Global agreed to a five-year deal with English sports tailor Kent & Curwen, a brand owned by Trinity Ltd. that is controlled by Hong Kong's Fung family, which "also set up GBG." Shares in Trinity, which also owns Gieves & Hawkes and Cerruti 1881, closed 52% higher at HK$0.99 ($.13) on the news. GBG shares added 6% to HK$1.62 ($.21). Trinity will pay Seven Global a cut of up to 10% of Beckham-related sales with a "minimum guarantee" of $3.5M in the first year and $7.25M by '20. There is a cap of $7.75M in any given year. The deal includes involving Beckham personally in areas "from product development to store design and location as well as creating new collections and fronting marketing campaigns." The deal is "a shot in the arm for Trinity, whose shares had halved in value" over the past 12 months as China's slowdown hit sales on the mainland and in Hong Kong (FT, 9/16).
