Former Manchester United and Real Madrid superstar David Beckham, who runs one of the most entrepreneurial empires in the world of sports, run into a big roadblock in his business life, as his wife Victoria has had to incur massive losses in her ventures.
According to a report in The Sun, a fashion firm owned by David’s wife Victoria has lost over £30 million in just five years, leading to David taking such a drastic decision. In order to balance the losses, Beckham has decided to cut down on his salary from one of the firms which he owns.
Beckham used to get paid £12.7m per year from Footwork production, a company which he set up in 1996. It is the same company which manages all the money he earns from his various endorsement deals. To compensate for the massive losses which Victoria’s fashion firm made, documents filed with Company Houses for the year showed that Beckham had reduced his own pay to £5.8million.
More details in The Sun revealed how Victoria’s fashion venture has been bleeding money. Despite David helping Victoria’s firm by bailing it out in the tune of £8.5million, it still ended up with losses of £10.2million in the year 2017.
Beckham’s brand, on the other hand, is still at an all-time high. One of his brands, DB ventures as of 2016 has been earning tons of money. The firm earned around £28.7million in 2016, though result for the financial year 2017 is yet to be declared.
It remains to be seen with the number of losses which Victoria’s firm is incurring, how much longer will it be able to sustain itself?