David Beckham's contract at LA Galaxy included two genius clauses that helped him earn $500,000,000

David Beckham was ridiculed by many when he agreed to take a 70 per cent pay cut to join LA Galaxy, but two 'unique' clauses in his contract at the MLS club would change everything.

It remains one of the biggest transfers in football history.

At the age of 31, Beckham decided to embark on a new challenge in the summer of 2007 when he left Madrid for the glitz and glamour of California.

He'd spent the past 15 years playing against Europe's elite, winning trophies with Manchester United and Real Madrid, so when he packed his bags for a league that was barely 10 years old, people asked questions.

But what many people don't know is that Beckham made a business-savvy decision in the boardroom that earned him millions.

As pointed out by @JoePompliano, Becks was able to negotiate a percentage of all team revenue as part of his contract in Los Angeles, meaning his earnings skyrocketed in the coming weeks, months and years.

And to be clear, that revenue included everything from merchandise, tickets and sponsorships, as well as hot dogs, beer and nachos sold at games.

When you add up salary, endorsements and revenue share, Beckham made a staggering $255 million during his five-year spell with the LA Galaxy [$50M annually].

He may have been laughed at for taking a 70% pay cut but the Manchester United academy product would become the world's highest-paid player during his time in California.

In fact, he also negotiated the right to buy an MLS expansion team for $25 million upon retirement, which was a genius move as Major League Soccer continued to grow in stature.

David Beckham holds up the now-iconic number 23 shirt during his LA Galaxy presentation. Image credit: Getty

As a result of Beckham making the league more popular, with attendance figures continuing to rise on a regular basis, the MLS would add seven new franchises by the time he left the league.

Now, the average MLS franchise is valued at $678 million, according to data from Sportico, which is a massive increase on what it was worth in 2008 [$37m].

To put this clever business move into further perspective, St Louis paid $200 million for an MLS expansion fee in 2019, while Charlotte paid a massive $325 million.

And Beckham, of course, exercised his $25 million option upon retirement and reaped the rewards.

"In the end, the numbers don't lie," Pompliano says. "David Beckham took a huge risk and was rewarded by turning his $6.5 million annual MLS salary into more than $500 million.

"But MLS also benefited — attendance, TV rights, and valuations are all up big. That's a win-win for everyone."

Beckham helped turn the MLS into a global powerhouse. Image credit: Getty