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Galaxy becomes 'global brand' after adding Beckham

(Reuters)
Updated: 2007-01-12 15:55

LOS ANGELES, Jan 11 - America's entertainment capital welcomed a new celebrity when David Beckham agreed to join Major League Soccer's Los Angeles Galaxy in a blockbuster deal worth $250 million over five years.

Beckham, one of the most recognisable and marketable sports figures in the world, will join the U.S. club after his contract with Real Madrid expires at the end of the season in a bold move to raise the popularity of the professional game in America.

"This is a great day for soccer, a great day for Major League Soccer, a great day for soccer in the United States," Tim Leiweke, President and CEO of AEG, the entertainment conglomerate that owns the Galaxy, said in a teleconference call on Thursday.

Importing Beckham, the former England captain, is the biggest sports deal for Los Angeles since ice hockey's Wayne Gretzky came to the NHL Kings in a 1988 trade with the Edmonton Oilers, who also received $15 million in cash.

"This is obviously a very, very memorable day for the history of our sport," MLS commissioner Don Garber told reporters.

"The biggest impact here is that David will make us more relevent, not just in this country but internationally. More people will follow our games, follow our teams and follow our play than in the past because of the status, the exposure and the following that he brings to us."

Beckham, and his wife, former Spice Girl pop singer Victoria "Posh Spice" Adams, should fit right into the Hollywood glamour scene.

OVERSEAS EXPOSURE

The Galaxy hope Beckham will draw attention from overseas.

"We become more of a global brand," Leiweke said. "We have begun to work on an Asian tour, that I guess will be in spring of 2008. We've already been offered a lot of interesting opportunities. We already have a tournament set up with Chelsea coming to the Home Depot Center (ground).

"We will absolutely market the Galaxy brand as a world brand. I think you will see a new logo and a new image for the Galaxy by summertime. You will see a new business plan that is very involved in expanding the Galaxy brand around the globe."

Specific details of the contract were not revealed, though the Galaxy chief said most of the Beckham's projected earnings would come from off-field opportunities.

"I have heard what industry experts are saying, which is that David has the opportunity to earn up to a quarter of a billion. I think he can. A lot of that will be on the commercial side."

Garber said the league would benefit.

"Clearly this will raise our profile overseas," the MLS commissioner said. "Our global TV ratings will go up. There's already been interest in purchasing our global television rights beyond what we've already done."

Beckham was signed under a new designated player rule that allows owners to sign a player outside the strict salary cap structure of the 11-year-old league, which has struggled economically.

"This was not an act of desparation. This was an opportunity for additional growth and additional exposure for our sport, our league and for soccer in the U.S.," Garber said.

The Galaxy has averaged 22,000 to 24,000 fans a game the last few years but dipped in 2006 when they missed the playoffs.

More than 1,000 new season tickets were sold by the Galaxy Wednesday morning after news of the Beckham deal.



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