David Beckham and Mark Wahlberg are set to battle it out in court following a fitness brand deal gone wrong.
The English soccer star is suing the actor’s fitness company, F45 Training, for breach of contract over a 2020 promotional deal.
The 48-year-old asks for over $18 million, alleging the company failed to pay him as the brand’s global ambassador.
Mr. Beckham’s company, DB Ventures Limited (DBVL), initially filed the lawsuit in 2022 before it was moved to the U.S. District Court of Central California last year.
He claims F45 failed to pay him shares of stock he was owed after the company went public in July 2021. The suit adds that Mr. Wahlberg’s company benefited from their relationship and enhanced its reputation with Mr. Beckham’s help.
Further, Mr. Beckham accuses Mr. Wahlberg and his company of “fraudulent conduct,” adding that he was misled during business dealings.
In response, Mr. Wahlberg and his co-defendants said the allegations were baseless and that the terms of the agreement between the two were clear.
“This is a breach of contract action that cannot stand because it is based on a skewed reading of the parties’ agreement that is contrary to its plain language and clear intent,” said the request.
A judge denied a motion to dismiss the lawsuit in September 2023.
Meanwhile, a jury trial has been scheduled for Jan. 25, 2025.
Details of the Lawsuit
The duo has a relationship dating back almost 15 years, becoming friends after Mr. Beckham relocated his family to Los Angeles in 2007.“I’ve been a fan of the F45 franchise and training model since being introduced by my friend, Mark Wahlberg … this partnership is an exciting business venture for me also, and I’m looking forward to the journey with F45 as the business continues to expand globally,” Mr. Beckham said in the statement.
Mr. Beckham entered into a five-year agreement with the company and was, in part, required to make social media posts to help boost engagement and publicity.
F45 agreed Mr. Beckham would be compensated $1.5 million a year, in addition to company stock shares that would be available to him six months and 12 months after going public.
However, DBVL claimed F45 failed to hand over the shares for eight months past the original date given. During that time, shares for the company reportedly dropped significantly.
“As F45’s business began to falter in 2022 due to fiscal mismanagement and macroeconomic pressures, F45 withheld millions of dollars in contractually obligated consideration,” the complaint states.
Mr. Beckham’s attorneys allege the shares were worth about $9 million less than they were in January 2022.
“Despite DBVL upholding its end of the bargain, however, F45 failed to issue substantial cash and equity compensation to DBVL as required by the parties’ agreement,” the complaint states.
According to court documents, the company’s evaluation was nearly three times higher after going public; thus, under his contract, Mr. Beckham claims he’s still owed over $14 million in damages and is entitled to $4.5 million for declaratory relief.
Mr. Beckham also requests that the defendants pay his legal fees built up from the case.
Mr. Beckham’s attorneys sent a notice of breach of contract to F45, giving the company 30 days to “cure the breach,” but ultimately, it was not resolved in that time frame.
The suit was initially filed jointly by Mr. Beckham and golfer Greg Norman but was later instructed by a judge to bring the two cases forward separately.
