(Sharecast News) – David and Victoria Beckham paid themselves more than £20m from their sport and media empire since 2019 as their fashion business suffered bigger losses and breached loan terms during the Covid-19 crisis, according to a report.
Pretax profit at David Beckham Ventures Limited (DBVL), the Beckhams’ brand management company, fell to £11.3m in 2019 from £14.8m the year before but the couple paid themselves a £14.5m dividend with a further £7m payout in 2020, the Financial Times reported.
Profit fell because of higher costs to fund expansion, currency effects and charitable donations, the FT said. Companies House’s website said the accounts for 2019 were overdue and the FT said they were due to be published.
The tattooed former footballer and his wife paid $50m to take full control of his brand business from long-time business partner Simon Fuller in 2019.
Annual revenue at DBVL rose £600,000 to £16.2m due to new licensing and brand deals. Victoria Beckham’s separate luxury fashion brand suffered a £16.5m annual loss compared with a £12.4m loss the year before, the FT said.
The former Spice Girl’s business breached the covenants of an HSBC loan last year, requiring a shareholder injection of £9.2m to settle the debt, the FT said.
The fashion company has cut costs, including closing its Mayfair store, to get through the Covid-19 crisis. the FT said. Victoria Beckham reversed a decision to furlough 30 employees last year after public criticism.
