Brand Beckham pays out $220m in dividends

Victoria and David Beckham. Photo / Instagram

David Beckham’s branded businesses paid out about US$124 million ($220m) in dividends, according to accounts filed this week, with profits surging thanks to endorsements, digital content and launches of new consumer products.

The set of accounts for DRJB Holdings highlight the ongoing popularity of the Beckham brand more than a decade after he retired from professional football.

DRJB Holdings includes David Beckham Ventures Ltd, which owns most of his brand portfolio and earns licensing revenues from companies such as Boss, Stella Artois and Paramount. It is also the holding company for Studio 99, which made the Beckham documentary for Netflix and produces marketing campaigns for brand partners.

Beckham and his team remain active in promoting his public image – most recently with the popular Netflix documentary – and turning that into a lucrative revenue stream through marketing tie-ups with brands keen to be associated with the star.

Beckham is also a co-founder and co-owner of Major League Soccer franchise Inter Miami.

DRJB Holdings is majority-owned by US retail and entertainment group Authentic Brands Group, which bought into the business in 2022, and has since overseen its global brand operations.

According to the accounts, which were filed on Monday, DRJB Holdings paid its shareholders ordinary dividends of US$28.5m in 2023, plus US$38.9m in preference share payouts.

The accounts also show that after the end of 2023, a final dividend of US$5.6m was paid against preference shares in the first quarter of 2024, while ordinary dividends of US$51m were paid to the company’s shareholders.

A person familiar with the details said the dividends were split between Authentic Brands, which owns 55% of the business, and Footwork Productions, the Beckham company that owns the remainder.

However, Authentic Brands was paid all its dividends on the preference shares, the person said, meaning the footballer would have earned about US$36m from his stake in the company.

Authentic Brands, which owns retailers that include Forever 21 and Barneys New York, and the brand rights for stars such as Shaquille O’Neal, paid about US$269m for a 55% stake in the group in 2022.

According to the accounts, pre-tax profits for DRJB Holdings rose to $36.2mn in 2023, from $16.2m in 2022. Revenue increased to $91.2m, from $89.7m the year before.

Written by: Daniel Thomas

© Financial Times