Sports Business Journal

July 30, 2007

By Terry Lefton

Galaxy deal boosts Herbalife's brand exposure

Whether spending millions to obtain the services of David Beckham benefits MLS or Posh Spice Beckham more has yet to be determined. However, Herbalife, which spent $20 million over four years to get its trademark on the Los Angeles Galaxy jersey Beckham now wears, is already certain it made a sound investment.

“People know who we are, and that is true here, and in South America and Asia ,” said Michael Johnson, a former Disney executive who has been Herbalife’s CEO since 2003. “Having hundreds of thousands of people wearing our brand on the jerseys isn’t bad either, but I’m not expecting a direct impact on our bottom line for another six months.”

Herbalife is sold by independent reps, so Beckham’s new ties to the company gives them a good talking point.

But now that awareness is up, there’s a new challenge. “Now we need to tell them what we are and that our product line includes things like hydration, skin care and energy products,’’ Johnson said.

MLS licensing chief Stu Crystal said that about 350,000 to 400,000 Galaxy jerseys will be sold this season, with 40 percent to 50 percent of those bearing Beckham’s name.

Herbalife itself purchased about 60,000 Galaxy jerseys.

Johnson said he did not have complete exposure numbers for Herbalife, adding that Web traffic to herbalife.com increased 50 percent in the week before Beckham’s MLS debut.

Joyce Julius & Associates measured Herbalife’s total exposure during the game at more than $175,000. It said Herbalife branding appeared clear and in focus for 3 minutes, 31 seconds during ESPN’s telecast...