Tuesday, July 10, 2007

David Beckham = New Compensation Strategy

For those of you out there who aren't soccer fans, you may have overheard on the news (TV, radio, internet) that David Beckham is coming to the states to play soccer. If you you don't know who David Beckham is, he's married to Victoria "Posh Spice" Beckham. If this clue doesn't help just follow my links...

He'll be playing for the Los Angeles Galaxy and making about $250 million over the next 5 years - this will come from sponsors, merchandise sales, and a % of club profits. If you're a hardcore fan you can go to the Galaxy site and see a countdown to David Beckham's arrival in LA!

I just read this article in Time by Gary Andrew Poole titled, "The Beckham Circus Comes To Town" where he talks about the circus (Beckham family) that will be coming...

I immediately put my HR/Compensation hat on when I read in the article about the "Beckham Rule". This is otherwise known as the designated player rule (but named after David Beckham) and allows a team to sign one player that is not counted or considered in that teams salary cap for the year.

For you HR and Comp Pros out there can you imagine your company creating a compensation rule, strategy, or exception just for that "high performer" on the market? Before today, I had never even considered the idea.

It's quite an interesting strategy and only time will tell if it pays off for the Galaxy and other teams who have and will take advantage of it...