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Posts Tagged ‘Landon Donovan’

Bending the Tax Rate and Salary Cap Like Beckham

Those incredible feathery, looping cross-field passes from David Beckham to LA Galaxy teammates Landon Donovan and Robbie Keane will soon be a thing of the DVR. The MLS Cup on December 1 will officially mark the end of the Beckham Carson home field era.

On the occasion of Beckham’s imminent departure, International Herald Tribune columnist Rob Hughes reminds that the soccer star is responsible for not one but two major changes to sports league financial rules. There was the discounted foreign workers tax law enacted in Spain circa Real Madrid 20o3 (a.k.a. the Beckham Law). And an equally momentous amendment prior to the athlete’s AEG transition in 2007:

The MLS agreed to a “designated player rule” that, in effect, allowed Beckham, and then a few others, to be paid more than the rest of their teammates combined. A hallowed principle in many sports in the United States, the salary cap, was altered.

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Media Mogul Monopolizes MLS Final

FishbowlLA is still in awe of last night’s LA Galaxy 2011 championship win over the Houston Dynamo and picture-perfect winning play from David Beckham to Robbie Keane to Landon Donovan. Even more impressive is the way team owner Philip Anschutz (pictured) was able to pull off the equivalent of passing to himself to score.

Has there ever been a situation like this in a modern era U.S. professional team sports final? Since Anschutz owns 100% of the Galaxy and 50% of the Dynamo, he was guaranteed a spot on the winner’s stage, no matter what. To accept a trophy… that bears his name. As Forbes “SportsMoney” blogger Adrian Melville reminds, Anschutz’s MLS monopoly runs deeper:

The Beckham brand, carefully managed by AEG, single-handedly sold 600,000 jerseys in his first [MLS] year, drastically increased season ticket sales at home, and played on the road in front of crowds that in some cases were four times the host team’s average. And the so-called ‘Beckham effect’ will continue even if last night was his last game in MLS.

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