David Beckham SUES Fitness Company F45 For $20M Over Disastrous Promo Agreement
David Beckham is suing a fitness franchise for more than $20 million after a promotional agreement between the two parties allegedly failed to pay out “substantial cash and equity compensation,” RadarOnline.com has learned.
The lawsuit was reportedly filed by both Beckham and retired golfer-turned-entrepreneur Greg Norman against the fitness company F45.
According to legal documents obtained by The Blast, Beckham and Norman signed on with F45 for a deal that should have included millions of dollars in yearly payments in exchange for the rights to use their images and brands.
But the deal allegedly went south after F45 “began to falter” earlier this year due to “fiscal mismanagement and macroeconomic pressures.”
Beckham and Norman claim the fitness franchise withheld millions of dollars from the pair despite the company’s contractual obligation to hand that money over.
Beckham also argued the deal “enhanced its public profile and credibility and helped roll out new fitness offerings for F45” which ultimately helped F45 go public in 2021 with a valuation “nearly three times higher” than the company had two years prior.
The 47-year-old soccer legend reportedly bought into F45 when it “led an investment round that reportedly valued the company at approximately $634 million.”
A few years later, the value of F45 seemingly dropped so considerably that Beckham’s investment became a “fraction of the value” it was when he first bought in.
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Beckham’s share was initially valued at “approximately $11.33 million as of the First Vesting Date, January 15, 2022.”
Then, by January 2022, the “value had dropped precipitously and was approximately $1.97 million – a mere fraction of the value [Beckham] would have received had F45 timely complied with its contractual obligations.”
The fitness franchise also received investors from other high-profile celebrities before Beckham and Norman bought in, including the likes of actor Mark Wahlberg and former NBA star Magic Johnson.
F45 allegedly provided “preferential treatment” to its other high-profile investors, allowing those investors – made up of “insiders and company directors” – to receive more profits.
In the lawsuit, the former soccer star argued that F45 “rendered freely tradable, substantially more stock to various entities affiliated with Fortress Investment Group during this same period of time, and had accelerated the vesting of other shares issued to Wahlberg, another key celebrity, who is also a board member, director, and insider.”
A rep for F45 tells RadarOnline.com, “F45 is disappointed to learn about the recent lawsuit filed by the licensing company for David Beckham, Authentic Brands Group ("ABG"). F45 believes this suit is an attempt by ABG to unreasonably profit off the rights it purchased from Mr. Beckham, despite ABG prematurely terminating Mr. Beckham's relationship with F45. F45 deeply values the relationships with all of its ambassadors, including Mr. Beckham, and does not believe this lawsuit has any bearing on, or is an accurate reflection of, F45’s relationship with Mr. Beckham."
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