David and Victoria Beckham have paid £8.1 million off their business empire after increasing revenues and profits fueled by a series of commercial deals.
Beckham Brand Holdings, which includes brands and fashion companies, reported a net profit of £19.1 million with a profit of £34.3 million in 2021, up from £11.6 million and £11.4 million a year earlier. The profit has exceeded the revenue of the previous year because of the investment income generated mainly from the partnership that is booked separately from the revenue. The group paid out £6.3 million in dividends to celebrity couples over the period, plus a further £1.8 million more recently.
The parent company’s accounts include managing and licensing David Beckham’s businesses and brands, investments in Victoria Beckham’s fashion and beauty business, and a stake in the Major League Soccer franchise Inter Miami.
The combination of revenue growth in the couple’s business and reduced losses at Victoria Beckham Holding – jointly owned by the couple and private equity firm NEO Investment Partners – shows how the two most famous people in the world have navigated the coronavirus pandemic. Accounts for the year ending December 2021 will be published at Companies House.
Separately, the fashion and beauty group’s annual profit rose 13 per cent to £40.9 million and reduced its net loss from £8.6 million to £5.8 million. Despite the increase in sales and reduction in day-to-day costs, the account warned that “more support is needed from shareholders”. Chief executive Marie Leblanc said the business would report stronger figures for 2022.
“We have entered a new chapter and our energy is focused on accelerating growth and taking the brand to its full potential,” he said.
Meanwhile, David Beckham’s commercial and sponsorship ventures generated revenue of £34 million, up from £11.4 million in 2020, while net profit rose to £19.6 million from £10.6 million. BBH’s revenue is almost the same as DV Ventures itself because Victoria Beckham’s business is considered an “ally” in the accounts for the parent company.
Despite ending his playing career more than nine years ago, the footballer is one of the faces of the FIFA World Cup, chosen as an ambassador by the host Qatar. The 2021 number does not include the Qatar deal, according to people close to the Beckhams. Although the former England captain came under fire for aligning himself with a country linked to human rights abuses, Beckham won praise in Britain for lining up with members of the public to pay their respects to the late Queen Elizabeth II as she lay in state. .
Its earnings power is also a product of long-standing partnerships with sportswear maker Adidas, luxury watch brand Tudor and whiskey drinks group Haig Club Diageo, as well as more recent deals with Italian carmaker Maserati and video game maker EA Sports. In February, US group Authentic Brands, which owns sportswear manufacturer Reebok, entered into a strategic partnership with DB Ventures to own and manage Beckham’s global brand.
Beckham, who is negotiating options to buy a Major League Soccer franchise while playing in the US, co-owns Florida-based soccer club Inter Miami. The FT reported in November that Beckham is open to holding talks with potential bidders about the possible sale of his former club, Manchester United.
The main shareholder of Beckham Brand Holdings is David Beckham through his entity Footwork Productions. However, the reorganization of the business, including the Authentic Brands deal, means that BBH has no direct investment in DB Ventures or Victoria Beckham Holdings.