Guild Esports recently announced that it had agreed to restructure its contract with former soccer legend David Beckham in an attempt to cut back on the amount of money they have to pay him. Back in 2020, Beckham signed a five-year deal worth $16.5 million. However, that deal has now been adjusted and will see Beckham paid roughly $8.27 million.
The esports organization has already paid out two of five annual payments to Beckham. Now though, he is no longer expected to receive payments of $3.8 million and $4.3 million in 2023 and 2024, respectively. Despite this change, he will still be paid $3.2 million for this year.
Instead of direct annual payouts, this new deal will see Footwork Productions receive 20% of the revenue generated from merchandising and sponsorship agreements. This is expected to “significantly” reduce Guild’s cash requirements while still allowing Beckham to serve as an ambassador for the organization.
Guild Esports is a British gaming organization that was founded in September 2019. Less than a year after its founding, Beckham acquired a “significant minority stake” in the company, making him an official co-owner.
The Profit‘s Take:
I’m a big proponent of this move. I feel like it’s a good fix for a deal that I was critical of earlier. Assuming he brings money (sponsors, fans, etc) to the table, this renegotiation is beneficial for Guild and David Beckham. I loved this deal for Beckham initially because he got the benefit of having an esports team attached to his name while getting paid to promote the organization. However, this renegotiated deal feels more aligned. Beckham has to do more work in order for the partnership to pay off, which is a win-win for him and Guild. I like this deal a lot more for both sides now.
(All information was provided by Esports.net, Game News 24, Hitmarker, and Wikipedia)
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