David Beckham earned more than $500 million by joining LA Galaxy, despite a 70% pay cut, Here's how

David Beckham shocked the world when he left Real Madrid in 2007 to sign with the LA Galaxy of MLS.

He was just 31 years old and accepted a 70% pay cut.

But his contract included two unique clauses that eventually helped him earn more than $500 million

Beckham was able to negotiate a percentage of all team revenue as part of his contract in LA. That included everything from merchandise, tickets, and sponsorships etc

When you add up salary, endorsements, and revenue share, David Beckham made ~$255 million during his 5-years with the LA Galaxy in MLS. That made him the world's highest-paid player.

Beckham also negotiated the right to buy an MLS expansion team for $25 million upon retirement.

David Beckham brought immense growth to MLS. Attendance is up 40% since his arrival, and MLS has seen its annual TV deal go from $8 million in 2006 to $250 million today

MLS added 7 new franchises by the time Beckham left the league, and they have added another 16 since. This has helped MLS franchise valuations skyrocket

David Beckham's team, Inter Miami CF, officially played its first game on March 1st, 2020. Inter Miami CF is already the 10th most valuable MLS club at $585 million. That's 2,240% more than the $25 million expansion fee.

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