David Beckham Files Lawsuit Against F45, Seeking $20M in Damages
Beckham is accusing the fitness franchise of failing to pay him on time
David Beckham has filed a lawsuit against F45, alleging that the fitness franchise failed to pay him on time for a marketing campaign in 2021. Beckham is seeking $20 million in damages.
Pro golfer Greg Norman is reportedly joining Beckham in his lawsuit against F45.
Both Beckham and Norman claim to have entered promotional agreements to aid in the development of the fitness brand, with Beckham alleging to have participated in public and private appearances for F45. The two fitness pros signed a deal with F45 that included yearly payments and a percentage of F45’s stock. According to the lawsuit, F45’s value had dropped by the time Beckham received his shares as a result of the payment delay.
The lawsuit, obtained by The Blast, includes copies of Instagram images of Beckham in F45’s studio. Despite Beckham fulfilling his agreement with the fitness brand, the suit alleges that F45’s business began to decline this year due to “fiscal mismanagement and macroeconomic pressures.”
The former soccer player also claims that F45 treated its other investors, including insiders and directors, preferentially, allowing them to profit more from their ownership. Actor Mark Wahlberg, who invested in F45 in 2019, sold nearly one million shares of the fitness franchise this spring.
F45 responded to Beckham’s lawsuit with a statement: “F45 is disappointed to learn about the recent lawsuit filed by the licensing company for David Beckham, Authentic Brands Group (“ABG”). F45 believes this suit is an attempt by ABG to unreasonably profit off the rights it purchased from Mr. Beckham, despite ABG prematurely terminating Mr. Beckham’s relationship with F45. F45 deeply values the relationships with all of its ambassadors, including Mr. Beckham, and does not believe this lawsuit has any bearing on, or is an accurate reflection of, F45’s relationship with Mr. Beckham.”
The rapid rise and fall of F45 has drawn criticism as of late, with the fitness franchise owing between $10 and $12 million in termination benefits related to its recent layoffs and executive leadership changes. F45 announced it was facing ongoing macroeconomic uncertainty this summer, forcing the brand to cut operational expenses and reduce its headcount by 110 employees. In July, Adam Gilchrist also stepped down as F45’s President and CEO, parting ways with the company.
The high-intensity fitness brand is currently considering a $385 million take-private offer from Kennedy Lewis Investment Management, with F45 forming a special committee to review the offer.
