07 June 2024 , 12:48
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David Beckham has settled his lawsuit with Mark Wahlberg's F45 Training.
The ex-footballers management company, DB Ventures Limited, had previously sued the fitness firm for breach of contract in October 2022, demanding over $10 million in damages following an alleged failure to pay "substantial cash and equity compensation" from a promotional agreement.
However, both parties have now reached a settlement. F45 Training Holdings Inc. clarified that DB Ventures Limited has agreed to drop the lawsuit against F45 Training, and David will continue as an ambassador for the brand. Dan Dienst, Executive Vice Chairman of Authentic Brands Group, which holds a controlling stake in David's management business, expressed satisfaction with the resolution in a statement: "We are pleased to have settled this issue and to retain our investment in F45, and wish the team all the best for the future."
Tom Dowd, CEO of F45 Training, also released a statement: "For a long time, F45 has been - and continues to be - a supporter of Beckham, as he has been for our brand, and are pleased to have reached a mutual business decision to resolve the matter." The extensive lawsuit had previously detailed that David had entered into a deal expected to generate millions of dollars in annual payments in return for the rights to use his image and brand.
Mark's team said they were 'pleased' to have reached the deal (Getty Images)However, things reportedly went south when F45 allegedly "began to falter" earlier this year due to "fiscal mismanagement and macroeconomic pressures." The lawsuit claimed that millions of dollars were withheld by the fitness franchise, despite their contractual obligations. David argued that his deal with F45 "enhanced its public profile and credibility and helped roll out new fitness offerings for F45". He believed this ultimately assisted F45 in going public in 2021 with a valuation "nearly three times higher" than what the company was worth two years prior.
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David, aged 49, invested in F45 when it "led an investment round that reportedly valued the company at approximately $634 million". However, a few years later, his investment became a "fraction of the value" it was when he first bought in as the franchise's worth plummeted.
David also contended that F45 "rendered freely tradable, substantially more stock to various entities affiliated with Fortress Investment Group during this same period of time, and had accelerated the vesting of other shares issued to Wahlberg, another key celebrity, who is also a board member, director, and insider."
The case was last seen by a judge in September 2023, and it remains unclear why there has been no progress from then until the recent resolution.