His original move to LA Galaxy from Real Madrid was seen as a revelation for the MLS. Before his arrival, 250,000 ‘Beckham’ jerseys were sold, prompting fanfare and worldwide interest in the Galaxy and the MLS. Attendances jumped, and US soccer benefited from his signature. The $250 million, 5 year deal, which included a mountain of sponsorship signed 2 years ago would have seen him signed through to the age of 37. Last season, despite David being a fantastic player, the LA Galaxy struggled, even with other ex-premier league star, Able Xavier, on their team they failed to make the playoffs.

So, being a world class player and one of the most marketable sportspeople in the world, why would LA want to sell him? Firstly, no team wants a player who doesn’t want to play for them. While I’m sure if the transfer falls through David will still give his best, there is no point LA stopping this deal. Galaxy has already made back the money they invested in David, so there would be no loss in him moving on. In terms of a team point of view, by releasing him the team could bring in another star under what was ironically known as ‘The Beckham Rule’, where only a portion of a marquee signing’s salary falls under the cap. A team is allowed 2 marquee players, so even without Beckham, $400,000 is freed for additional players.

So why wouldn’t they want to sell him? With David at the Galaxy the team is valued at about $100 million. This would fall by almost half, jeopardizing sponsorship for the club. Gate attendances would drop, merchandise sales lost. The impact would take some shine off the glamor club. Not to mention it may be difficult attracting a player of Beckham’s talent to replace him.

Taking a deeper look into his lucrative contract, Beckham may see some of those big bucks lost. Breaking it down at $50M a season, $10M is in his performance contract, $10M in merchandise sales, $20M in sponsorship and the last $10M in profit sharing from Galaxy. As you can probably tell $30M of that will be wiped instantly, however a move to Milan may see a similar performance contract and merchandise sales should still be in the same vicinity, as the Beckham brand is global. In terms of sponsorship, Beckham’s deals should stay relatively unaffected as they are worldwide companies. Any shortfalls of US specific marketing bonuses may be made up by new sponsors in Italy.  Italy, the home of fashion, presents a lot of opportunities. Despite David’s long list of sponsors, he still has some room for more. Fine living and luxury items such as fashion and cars are industries in which David may sign up with in Italy.

Obviously the move isn’t about money.  It’s about fulfilling his dream of trying to win a World Cup, and 2010 will most likely be his last chance. Galaxy have already dismissed AC’s first bid of between $10 and $20m, telling them to increase it. I guess time will tell whether they will.

The process of relocating a professional sports franchise is not an easy one.  That could be one reason why the Chargers have hired Wasserman Media Group (WMG) to market the team in L.A. and Orange County.  That specific market accounts for roughly 30% of the team’s luxury suites and club seats currently in San Diego. The LA Times has called the move “an initial step” toward relocation. But Chargers Special Counsel Mark Fabiani claimed that the newly formed partnership “has nothing whatsoever to do with the team staying or going.”

Besides being known as one of the leading global sports management companies,  WMG’s website also states that consulting is one of the groups areas of expertise.  Specifically it states “WMG works with some of the largest and most successful companies in the world and manages their marketing strategies, develops strategic alliances, and drives innovative programs to elevate their brands.”  Does this suggest that WMG will create an alliance between Los Angeles and the Chargers organization?

Could Phillip Rivers and the Bolts be the next franchise to relocate, or is WMG really just located in a great place to help San Diego market its team?  San Diego’s success may suggest that this is only for marketing purposes or to bring in more revenue during the tough economic state.  WMG would be a great choice to market any sports team, as WMG represents many of the top organizations and companies in the world including David Beckham’s Los Angeles Galaxy organization, A.C. Milan, many of the English Premiere League teams (Newcastle, Liverpool, Reading, Totenham, Rangers..), and almost every team in the NBA. Although WMG has dealt with many storied franchises, the Chargers would be the first NFL franchise on the client list.

On the other hand, the poor record the Oakland Raiders had the past several seasons could make them more of a candidate for relocation than the Chargers.  Owner Al Davis has shown his unpredictability last season, so with Oakland, anything is possible.  Maybe changing locations will help the team (Using OKC in the NBA as a comparison, maybe it won’t).  Signing Dynasty 2009 Draft Client Kevin Grant to strengthen the Raider defense could be a nice addition as well.

Don’t worry, Beckham is only leaving North America to play soccer for several months.  He has every intention of coming back to LA next season.  The Major League Soccer (MLS) season is almost over and Beckham would only be on loan from January until the conclusion of the Italian league.  After the MLS season concluded last year, he went to London and trained with Arsenal FC, but he never officially played on the team.

The soccer season overseas is much longer and constant compared to the MLS.  Players only get a month or two off at most when they play in leagues like the EPL or Serie A in Italy.  The MLS is relatively shorter. The fact that Beckham will now get two salaries amongst his many endorsement deals does not hurt either. As if Becks and Posh Spice need the added income.

Beckham has decided to keep up his skills and continue playing overseas to stay in top shape.  This decision was influenced by his desire to continue playing Internationally for England in the next world cup.  Although Beckham lost his long tenured captaincy from the national team last season, he still wants to continue playing International soccer.  If the deal goes through with AC Milan, Beckham will join Brazilian stars KaKa and the newly acquired Ronaldinho, along with Italians Andrea Pirlo and Gennaro Gattuso.  This star studded team will certainly challenge Becks in training and will only get him better and ready to play Internationally and in the MLS season.

Beckham came to the Los Angeles Galaxy two seasons ago (2007) to help jump start soccer in America.  Although he was injured and did not play as much as he would have liked to his inaugural season, Beckham had a great second season showing off his accuracy with dazzling free kicks and goals from midfield…many of which ended up on Sportscenter the following morning.

Despite Beckham and others efforts, soccer still has yet to break through as one of the top sports in the US.  However, Beckham has certainly increased domestic interest in watching and participating in the sport.  Having Beckham playing in Italy or wherever he may decide, can only be beneficial for the future of American soccer.  With David’s name currently attached to American “futbol” and him playing overseas, the MLS could be seeing added attention and press.  Having Beckham participate in two leagues simultaneously could also persuade other great international players to do the same, bringing more talent to the MLS, thus making American soccer and the MLS more competitive with other countries and leagues Internationally.

Soccer has the potential to be the next big sport in America.  Soccer is world renown and has only increased in popularity as America has become more diverse and multicultural.  Maybe it is time to become a soccer agent.

CAA only recently jumped into the field of representing soccer players in 2007, when David Beckham came to the U.S. CAA was in association with Beckham’s Manager, Simon Fuller, and was in charge of international marketing for Beckham.  Since Beckham came to CAA, one of the English Premiere Leagues top teams, Chelsea FC, has also become a CAA client.  Chelsea and others are looking to break into the growing American soccer scene.

Gestifute was founded in 1996 by FIFA agent Jorge Mendes.  Mendes is now in charge of the many high profile clients and coaches.  He is looking to find the talented youth players in Europe and is now expanding to America.  Gestifute also represents player and coaches like Ricardo Carvalho (Chelsea/Portuguese National team), Anderson (Manchester United/Brazilian National Team), Nani (Manchester United/Portuguese National Team), Deco (Chelsea FC/Portuguese National Team), Ricardo Quaresma (FC Porto/ Portuguese National Team), and 2002 World Cup-winning head coach Luiz Felipe Scolari (Chelsea FC).

This is a great thing for American soccer players and fans.  It shows that American soccer is finally accepted overseas and that foreign teams are looking for talented American soccer players.  Soccer is seen as a global sport that has been played all over the world for centuries, but America seemed to be late in catching on.  Football, not Futbol, has been the sport Americans are known for around the world, but that is beginning to change.  The emergence of Major League Soccer (MLS), an American soccer league, has now given domestic and foreign players an arena to play in.  Many great Americans develop in the MLS and others are now playing at great clubs overseas (Beasley, McBride, Onyewu, Donovan did but went back to the MLS).

Before the last World Cup, the USA was ranked as high as 8th in the World. The USA is now ranked 30th in the world (as of the most current FIFA rankings last month), and many young US players are playing overseas.  I witnessed this first hand as one of my Roanoke Star Premiere teammates, Danny Karbassiyoon, went abroad to London and played for Arsenal FC after high school.  Danny was nasty and had the ability to play at any level, being one of the first American born players at Arsenal.  He is now the head scout for Arsenal in the US.

The MLS may have salaries that are a lot less than foreign leagues, but the money will only increase as soccer grows in America.  The EPL and other foreign leagues pay soccer players just as much as the NFL pays its players.  It would certainly be worthwhile for American agencies to invest in soccer, however an agency would need international “connections” overseas to do so.  The partnership between CAA, one of America’s leading sports/ entertainment agencies, and Gestifute might be the spark that ignites the fire.

The merger between CAA and Gestifute proves to solidify the statement that American soccer is growing.  The international community is now starting to recognize American players and accepting them and encouraging them to play internationally.  With the arrival of Beckham, the MLS has picked up and gained fans and approval by other players.  This merger is a great sign for soccer in America.  I expect other American sports and entertainment agencies to add soccer to their sports divisions.  It is not only marketable overseas, as Americans are catching on and the amount of talented American soccer players will only increase.

• Is it not an exaggeration to say that Isiah Thomas is directly responsible for a $187 million loss? [The Thomas Tax].
• Remember that guy Byron Leftwich? The Jaguars definitely don’t [Garrard signs seven-year, $60 million contract with Jags].
• Looks like the Dolphins are between Gholston and Long (Jake) [Reports: Dolphins negotiating with Long, Gholston].
• David Beckham will earn 200 times the MLS senior player minimum over 500 times the “developmental player” contract minimum this year [From Rags to Riches].
• 16th round MLB Draft selections can still find success even though the odds are not in their favor [After one season in the majors, Young gets $28 million deal from D-backs].
• While he is not helping the Miami Heat, D Wade is busy turning up the heat by posing for the cover of Ocean Drive [Wade's continued star power].
• The Trailblazers are doing an awesome job campaigning for LaMarcus Aldridge to win “Most Improved Player” [Rip City Rising].
• 6′11 Junior, Trent Plastaid, has declared himself eligible for the NBA Draft, but will not sign an agent [BYU's Plaisted declares for NBA Draft].
• On the other hand, 6′11 Freshman, Anthony Randolph will forfeit his NCAA eligibility by hiring agent Arn Tellem to represent him in the upcoming NBA draft [Source: LSU's Randolph signs with agent].

This week’s featured post is my in-depth post covering who is likely to be representing the top players in this year’s NCAA Championship game. It also looks at who alumni of the two teams have selected for representation. Go check out the story by clicking the Featured tab on the right sidebar.

With March Madness over, the top players are making a choice whether to play on at their respective colleges’ or move on to the NBA. One of the players who hadn’t made his choice previously was USC Shooting Guard O.J. Mayo. OJ averaged 20.7 points in his freshman year. [Stats]

Now OJ believes he is ready to make the step up, by declaring for this year’s draft. [USC freshman Mayo will declare for NBA draft] Although he doesn’t have an agent yet, Mayo intends to sign one, thus ending his eligibility in the NCAA. He is being touted as a first round pick.

Meanwhile, player of the year, North Carolina’s Tyler Hanborough, has not yet declared for this year’s draft. [Hansborough Stays Quiet About His Future Options]

MLS Salaries Released

A lot of discussion has brewed in regards to MLS this week with the release of the players’ salaries. Obviously, David Beckham still heads the pack with his guaranteed $6.5 million. However, what many people may not know is that the developmental wage is a mere $12,900, which 43 players earn. Another 76 players earn under $33,000. [M.L.S. Salary Structure Is a Matter of Rich Man, Poor Man]

It’s hard to take this information on face value as the upscale is heavily weighted by the marquee (designated) player rule. But what it does highlight is that the minimum wage is marginal compared to what players would earn in other countries, not to mention in other professional sports.

Henry to Chelski

Goal.com is reporting that Chelsea FC has made inquiries about Thierry Henry joining the club in the summer. Chelsea is interested in signing the French forward, who apparently misses his daughter. His daughter is back in London with her mother.

Highest earning coaches

Staying with soccer, a list of the highest paid managers has been released. It comes with little surprise that before losing his job at Chelsea, Jose Mourinho was the highest paid, at €29 million. [Mourinho And Capello Top Earners Last Year] Maybe some people are now thinking about representing coaches instead of athletes after reading these wages. The next manager in line is former Real Madrid and now England manager Fabian Capello at €14.2 million.

Celebrity and soccer player, David Beckham has recently inked (another) endorsement deal; this time a two-year deal with permanent marker company, Sharpie. The deal was negotiated by BrandBuzz, NY, a division of Young & Rubicam Brands, a fully owned subsidiary of WPP Group plc. (WPP is the world’s second-largest advertising and marketing conglomerate).

Terms of the deal were not disclosed, but it marks the largest global integrated campaign in Sharpie’s history. The former Manchester United star will become the brand’s global ambassador and will star in a global marketing campaign supporting two of the brand’s new products, the Ultrafine Retractable marker and the Sharpie Pen.

I know you’re asking, “What does David Beckham have to do with markers?” Well not much on the surface, but when you dig deeper you see that Sharpie is launching a global campaign and DB is a global icon. Beckham is the prime example of an athlete that has branded himself. This effort has paid off huge for DB as he has racked up sponsorship deals with Adidas, Georgio Armani, Pepsi, Motorola and Coty. These brands also love Beckham because he is a great vehicle for reaching their target market. The consumers that the aforementioned companies want to reach are the same people that identify with the David Beckham experience. If you are thinking, “How can I become as popular and rich as David Beckham?”, then take note of the following 5 steps that every athlete that must follow for Beckham-like success. Agents pay attention, you may learn something too:

Step 1-Form a romantic relationship (marriage is ideal) with some one more famous than you (Marry up!). At the time when Beckham married Victoria “Posh Spice” Adams, Victoria was one of the most famous women in the world as a member of the Spice Girls.

Step 2-Improve your public speaking. DB does interviews and appears on TV all the time. Companies want endorsers and fans want celebrities that can communicate well. Think about how many more endorsements Shaq would have had if he didn’t speak in a monotone.

Step 3—Serve your community. Become a humanitarian. Beckham has won awards for his service to the world. People and corporations love someone who gives back. Find a charity or organization that you can start supporting now! Also if you have been doing service, begin to make it public.

Step 4–Start an official website (and Myspace page). Beckham is a brand with a state of the art site where his fans can visit and discuss the life of Beckham. Take the next step from obscurity by getting people to talk about you in a controlled environment (a site you moderate). The point is to create a pull on the consumers that will subsequently get the attention of sponsors.

Step 5—Dress the part. Beckham is as recognized for his fashion sense as he is for scoring goals. Dwyane Wade was named as one of the world’s best dressed men by both Esquire and GQ Magazine, and look at the wealth and fame that has accompanied young Flash.

Last but not least is skill. I did not list this as a step because it should be a prerequisite. Tiger, Beckham, Lebron, ARod, and Venus are arguably the top competitors in their respective sports and this plays a huge reason why everyone is infatuated with them. But if you are a young athlete or agent with something prove, let the branding process start now! Do not let the window of opportunity pass you by!

Of course becoming a megastar is more complicated than this but if you follow these steps I guarantee you will be off to a good start. In the words of my deceased neighbor Biggie Smalls, “Follow these rules you’ll have mad bread to break up.”

Notes: Other steps that were honorable mentions were 1) A hot nickname 2) Celebrity entourage (Ari Gold included)

I want your opinion, “What else do you think an athlete needs to become a recognizable brand to fans and corporations?”

• It would be tough for me to publish this Shabbat Shalom: Friday Wrap-Up without mentioning that Bruce Pearl is “Jewish and proud” [Pearl takes Tenn. to the top].
• Chris Paul signed with Nike’s Jordan Brand and will be unveiling his first shoe on March 1st [Jordan Brand Launches First Signature Shoe For Chris Paul].
• Speaking of Jordan, I honestly do not think that even his endorsement will get me to buy a pair of Levi’s 501 jeans [Michael Jordan wants to touch my butt…and yours too!].
• Don @ With-Malice, put up my predictions for the 2008 NBA Finals. I took the Celtics over the Lakers, with a close eye on the Spurs [NBA Finals - History Repeats?].
• Canadian Universities may soon be incorporated into the NCAA [NCAA Goes International].
• The mega conglomerate known as IMG has just revealed plans to start a new sports league called SLAMBALL [IMG and Mike Tollin Productions Announce New Joint Venture to Create 'SLAMBALL' Sports League].
• Did you know that it was actually American Idol’s creator Simon Fuller and his agency called 19 Entertainment, who secured David Beckham his $250 million deal with the Los Angeles Galaxy? [Business lessons from David Beckham]
• Consequence of pleading guilty to bank fraud charges related to a $5 million counterfeit check scheme? Six months of home detention [Agent of Marion Jones sentenced in bank fraud case].