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Friday October 11, 2013 MYT 7:45:00 PM
Friday October 11, 2013 MYT 7:51:37 PM
by simon bowers
Power couple: The branding and money-making powerhouses of David and Victoria Beckham. – Reuters
Beckham Ventures, the company linked to Victoria Beckham’s clothing label, was star performing business for family brand.
THREE companies at the heart of the Beckham family branding empire have posted combined profits of more than £4mil (RM20.3mil) and one director – thought to be David Beckham – has received £14.1mil (RM71.7mil) in pay for his success in exploiting brand and image rights.
Beckham Ventures, the firm linked to Victoria Beckham’s clothing label, was the star performing business with sales jumping from £6.8mil (about RM34mil) to £15.4mil (RM78mil) last year. It is now close to the level of turnover at Footwork Productions, a sister company dedicated to exploiting the David Beckham brand.
Victoria has built a growing following in the designer fashion world, letting her pop career as a Spice Girl fade. She presented her first catwalk collection in New York in 2008.
Meanwhile, David Beckham’s Footwork Productions reported sales up 8% to £16.5mil (RM84mil) last year, but generated profits of just £390,500 (RM2mil) after incurring £14.4mil (RM73mil) of “administrative expensive” – largely accounted for by a £14.1mil (RM71.7mil) payout to the highest paid director.
This is thought to have gone to David, though Victoria and her father Tony Adams are also on the board, as is their lawyer Andrew Thompson.
Another winner from the success of the Beckham brand is the couple’s manager Simon Fuller.
His investment vehicle XIX Management owns an equal one-third stake in Beckham Ventures and another sister company, Beckham Brand. These two companies give their principal activities as “exploiting the brand of David and Victoria Beckham”.
The biggest success among the Beckham’s three UK brand and imaging companies was recorded at Beckham Ventures, where a £2.1mil (about RM10mil) loss in 2011 was transformed into a pretax profit of £2mil for last year.
The Beckhams put this down to the company’s significant investment in launching the Victoria Beckham fashion line.
“This additional line has proven to be successful and has been a key driver in growing revenues,” the accounts state.
While company papers suggest the activities do not extend much beyond exploiting the family brand, the accounts make clear the business has invested in considerable fashion production, leaving it holding £3.6mil (RM18mil) of stock at the end of last year. The business owed a similar sum to trade creditors.
All three Beckham branding businesses paid taxes on their profits. – Guardian News & Media
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Lifestyle, Beckham Ventures, David, Victoria, business, Simon Fuller, profits, branding, fashion, clothing
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