A legal dispute between the former footballer David Beckham and fitness company F45 Trainingco-owned by the actor Mark Wahlberg, It ended. Both parties managed to reach an agreement, after a lawsuit related to an alleged breach of contract was filed in October 2022.
Court documents indicate that Beckham was demanding compensation of USD 18.8 million for alleged non-payment in a promotional agreement signed in 2020. The British midfielder claimed not to have received payments due for his association with F45, despite that the company would have benefited by improving its reputation thanks to its connection with him.
Additionally, Beckham was seeking $14.3 million in damages, out of the $4.5 million in declaratory relief, under the terms of his contract. Prior to the recent settlement, the case was scheduled to go to trial on January 25, 2025.
The shared press release assured that, after the conflict is resolved out of court, Beckham, through his company DB Ventures Limited, will continue his role as an investor in F45 Training.
Both parties expressed their satisfaction at seeing the legal process concluded. Dan Dienst, Executive Vice President of Authentic Brands Group, stated that DB Ventures Limited is “pleased to have resolved this issue and to retain our investment in F45, and wishes the team all the best for the future”.
In turn, Tom Dowd, CEO of F45 Training, highlighted: “For a long time, F45 has supported [y sigue apoyando] to Beckham, as he has done to our brand, and we are delighted to have reached a mutual commercial decision to resolve the matter.”
Dowd also underscored F45’s commitment to its franchisees, noting the training company’s “recent strong year-over-year same-store sales growth in April.” The CEO added, “We are excited about our future and the continued growth of our world-class fitness brands that generated strong total April systemwide sales of $48.9 million.”
The actor’s participation Ted and Family plan in the company it is not minor. The actor acquired a 36% stake in F45 Training in 2019, which has been instrumental in the company’s international expansion.
The origin of the conflict is in November 2020, when David Beckham became a global ambassador for the Australian brand F45, promoting its equipment and training in posts on his Instagram, which are currently deleted.
David Beckham Ventures Ltd (DBVL), the former athlete’s firm, alleges that the company promised to grant him shares in early 2022, but the issuance of these was delayed and, when it was finally carried out, the value had decreased from approximately $12 per share to $3 per share. This delay reportedly resulted in a potential loss of revenue of up to £8.5 million.
The defendants, including Wahlberg and the founders of F45, asked the judge to dismiss the allegations, calling them baseless “fraudulent conduct.” In response, Beckham’s legal representatives detailed the unfulfilled promises and considerable financial losses suffered due to the manipulation of the stock deal.
This litigation is contextualized by the recent significant drop in the company’s stock price, going from an initial value of $16 per share to just 15 cents per share today, according to the most recent market data. In addition, the company was forced to close several franchises in countries such as Australia, the United States, the United Kingdom and Ireland.
