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Context of 'May 12, 2002: David Beckham Signs New Contract with Manchester United, Over 20 Percent of Compensation for Image Rights'

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After months of negotiations, David Beckham signs a new three-year contract with Manchester United. Beckham is to receive £70,000 a week in basic pay and £20,000 for use of his image rights, representing a 300 percent salary increase. It is the image rights issue that caused the negotiations to go on for so long. “The process of every player contract negotiation is different,” says United chief executive Peter Kenyon, “and one of the unique aspects of David’s was understanding how his global image could best be utilized to the mutual benefit of Manchester United and David himself.” [BBC, 5/12/2002] Clubs and players are keen to agree that a portion of compensation be paid for image rights, because it is taxed at a lower rate. [SportsPro, 2/25/2011] The new contract should take Beckham’s total earnings to around £11m a year. Although Beckham’s deal is not the highest in world football, Beckham receives so much from endorsements that he may overtake French midfielder Zinedine Zidane as football’s top earner. [BBC, 5/12/2002]

Entity Tags: Peter Kenyon, David Beckham, Manchester United F.C.

Timeline Tags: Football Business and Politics

Chelsea announces a loss of £74.8m for the 2007-08 football season. The figures show a 25 percent increase in turnover, to £190.5m, making the club second only to Manchester United in the Premier League, but the loss fell by only 7 percent compared to the previous season (see February 19, 2007). Chief executive Peter Kenyon allows that the club’s aim of breaking even by 2010 is “ambitious,” but adds: “I don’t think it’s something we are postponing, but it’s always been ambitious. We are determined to meet it, or get as close as we can.” [Guardian, 2/22/2008] The club will actually make a loss of over £70m in the 2009-10 season (see January 31, 2011).

Entity Tags: Chelsea F.C., Peter Kenyon

Timeline Tags: Football Business and Politics

The Spanish government announces that the “Beckham law” will cease to apply on January 1, 2010. The law was passed in 2005 in order to lure top foreign executives to Spain by giving them a massive tax break (see 2005). However, most of the people who took advantage of the law were footballers, in particular England and Real Madrid midfielder David Beckham. The law’s repeal will lead to Spanish clubs having to pay foreign players more in future, creating a more level playing field for signings with clubs in other European countries. [Xinhua News Agency (Beijing), 11/4/2009]

Timeline Tags: Football Business and Politics

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