Sunday, January 14, 2007

David Beckham to USA: Good or bad move?

When a soccer (football for my Euro friends) story is the lead story on not only the sports pages but all news pages in North America in the middle of January, you know its something big. Of course I'm referring to David Beckham signing with LA Galaxy of Major League Soccer. I am a fan of soccer and follow the sport fairly closely. There had been rumor of his foray into the American game for a year or so now but most observors expected it later in his career, say in three to four years. So I must say, the move itself did surprise me a bit. However, when you look at the magnitude of the deal, $250 M for 5 years it'd be more surprising if he'd refused the deal. The question on many observors minds, is what can this deal mean for soccer in America?

Let me begin by saying that there are many minsconceptions regarding Beckham. Beckham is not the best soccer player in the world and never has been. During his career, he hasn't even been the best player in his home country. That being said, he has been a very good player and has been very successful for many years, primarily with his former club Manchester United. He was a long-time captain for England in international play and a long-time starter for them as well. To say he is a poor player is simply wrong. To this day he is still one of tbe best dead-ball players in the world. He is also known for working very hard and being committed to sport and his teamates despite all the the off-field distractions he has had to deal with.

As successful as Beckham has been on the pitch, he's been loads more successful off the pitch. He is a brand and with his pop star wife, Victoria Adams (aka Posh Spice of Spice Girls fame) they are superstar celebrity couple. Beckham's star power is known all over the world and he's one of the few recognizable soccer players in North Ameria. His success off the pitch has probably hurt his reputation on the pitch though. Because he is so famous and visible, his game is more scrutinized then it would be if he was ugly and not a commercial entity. This criticism has become heavier in recent years as his game has diminished somewhat. His performance for England in the past couple years has been average (although he did score in the World Cup) and he was longer a regular starter for his club team, Real Madrid.

My view is that this move is great for North Amerian soccer and a good move for Beckham. Major League Soccer (MLS) is a lower tier professional soccer league based in 13 cities throughout the continent. It has a modest business model but has experienced slow, if steady growth since it's inception 11 years ago. Up until this year, all teams had to abide by a $2 M per season salary cap. However, due to speculation of an impending decision from Beckham to come to the league, they adopted the so called "Beckham Rule" that allows each team to have one player exception to the salary cap. By signing Beckham, the LA Galaxy have guaranteed a sell out for every game they play in this year, home and away. The league will recieve more exposure and therefore, it can't hurt.

A question remains as to how long will the momentum of this signing remain? Well, it could die down but to me it's a no lose situation for the league. Almost all of the value of the deal is coming from endorsements. MLS is on the hook for a very small amount but they get all the benefit of the exposure. In a worse case scenario, the deal flops in a couple of years and the league is back to where it is now - a modest league with small, yet loyal core group of fans and a responsible business model.

This is also a good deal for the Beckhams. $250 M is never bad. However, this deal also suits what I believe is the couple's aspirations post-soccer. It's no secret both of them prefer to be in the limelight. A move to Hollywood will guarantee them the star attention they want. Friends of Tom Cruise and Katie Holmes, they already rub elbows with some of Hollywoods biggest stars. In fact, Angelina Jolie had reportedly asked Beckham to give her son Maddox private soccer lessons. Furthermore, Beckham opened a soccer academy in LA that he has frequently cited as his reasons for coming to America. Beckham will have some pressure on him to impress in his performance but as a former captain of Englands national team, there is no other higher pressure position in sports then Englands soccer captain so he'll have no doubt handling the scrutiny he'll recieve over here. In fact, it'll likely seem like a walk in the park because the quality of the play in the MLS is considerably lower then in Europe.

I personally hope this deal does help with growth of soccer in North America. I am a fan of the game and although I prefer the European leagues and international games, I know I'll tune in more to MLS this year simply because Beckham may be playing. My interest is more to do with the spectacle then the quality of the soccer as it relates to Beckham but I'm sure the MLS isn't entirely concerned with why people are watching but rather if they are.

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