Beckham's sponsors and image increase his value to Real

Signing David Beckham is a masterstroke for any club wanting to expand its global reach.

For Real Madrid his value is increased because his numerous rights deals fit so snugly with those of the Spanish giants.

"Right now he is one of the most important players in the world in terms of marketing... Beckham is an icon," Real's Emilio Butragueno said recently at a marketing conference. Transfers of top soccer players have always been expensive but nowadays they are complicated by the individual's image rights and sponsorship deals.

Beckham cost Real 35 million euros ($41.31 million) from Manchester United and is expected to earn around six million euros a year plus bonuses. He also earns a fortune through a myriad of sponsors including sportswear firm Adidas and British retailers Marks and Spencer.

His image rights have helped him earn a personal fortune of 50 million pounds, according to this year's Sunday Times Rich List, while his brand value is estimated at over 200 million.

Real's sponsors include Pepsi - also Beckham's personal sponsor - and their strip is made by Adidas, who also have boot deals with Real players Zinedine Zidane and Raul.

Signing the England captain therefore gives an instant boost to their brand value, particularly in the crucial Asian market where Beckham is close to a sporting god.

Appropriately his switch to Real was announced as Beckham flew to Japan for the start of a personal marketing tour.

Real also seem to have stepped over the potential stumbling block of Beckham's image rights - Beckham's last contract with United was held up for months as the two sides bargained over when the club could use Beckham's image to sell their products.

Real's public policy is not to allow individual marketing contracts but the club respected the individual deals of Zidane and Brazil's Ronaldo when they joined the nine-times European champions.

"When a player signs for Real Madrid he must give up his image rights for the club to manage," said Butragueno.

Some query United's wisdom in choosing to sell their prize asset on marketing and soccer grounds. Real are the only club to rival United's allure and they have consistently bettered the English side on the pitch in European competition.

Beckham has become the face of much of United's branding, taking the starring role in adverts for club sponsors such as Vodafone. Beckham is also the face of Vodafone's Japanese unit, J-Phone.

"We use David as a lifestyle icon. He does not appear in our advertising dressed in football kit, he is always appearing in his own casual clothing," Vodafone's corporate communications director Mike Caldwell said.

But analysts believe the club has weighed up the pros and cons and decided its brand can survive in its biggest marketing outlets, like the Far East, without Beckham.

On the field United have won the English league title four times in the last five years but manager Alex Ferguson is keen to revamp his squad to challenge again for the Champions League they won in 1999. Beckham's sale raises much-needed funds.

"Financially they have probably done the sums and spoken to their joint venture partners such as Vodafone and Nike," said one analyst who declined to be named.

"They've said 'if that is what the manager wants for the team, he knows the football side best and we've got to maximise our revenues'."

United's 300 million-pound, 13-year deal with Nike, which kicked in before the start of last season, means the club does not have to depend on the popularity of Beckham to guarantee shirt sales.

Whether Vodafone will want to renew their shirt sponsorship contract, which expires in 2004, with a United without Beckham remains to be seen. In England a club is reckoned always to be bigger than an individual player.

Fans in Asia might not agree.

"Many fans in Asia watch a team because of the individual star players. When those players are transferred quite often they will swap allegiances to a club and they will follow the player," said FutureBrand consultant Samantha McCollum.