Victoria Beckham’s business has had cash flow problems for years. In 2016, David Beckham bailed out Victoria’s business with some kind of loan for £5 million. She’s still lost millions of dollars/Euros because – in my opinion – she’s massively over-extended and she’s failed to read the room. While Victoria’s clothing line is popular, she seems to run her business like she’s already a massive brand, a la Ralph Lauren. She also spent the past few years trying to sell a makeup line in the middle of a massively oversaturated branded-beauty moment. Who wants to buy Posh Beckham’s makeup when Rihanna is selling her own popular line, you know? The point is that Victoria’s business has big money problems. But the Beckhams themselves don’t have money problems, because David’s businesses have always been quite successful. Back in 2017-18, the Beckhams were also having major marriage problems and David was basically living full-time in Miami, away from Victoria. Combine all of that, and now we have this story:
David and Victoria Beckham snapped up a $20 million penthouse in Miami because it offers them “utmost privacy”, a property source says – while Victoria’s struggling UK fashion business sought up to $185,000 in emergency British taxpayer funds for her fashion business. The soccer superstar and Spice Girl turned fashion designer just bought the $19.8 million condo in One Thousand Museum, the tower designed by the late famed architect Zaha Hadid in Miami.
Although they are yet to move in, they’re already being slammed for reportedly taking out a $12 million bank loan to buy the 11,000 sq ft property via their firm, Beckham Brand Ltd. as Victoria’s struggling fashion business sought up to $185,000 in British taxpayer funds amid the pandemic to place 30 staff members on furlough for two months.
Following the heightened criticism, the company confirmed on May 1 that they were no longer seeking taxpayer assistance. But despite this, the Beckhams still proceeded with their luxe US Miami bolthole with their own private elevator and a wrap-around terrace.
The source told Page Six: “The building is very special, it’s one of a kind. It’s like owning a piece of art. It’s a very special penthouse, you get a 360 degree of Miami from sunrise to sunset.”
The Beckhams plan to spend more time in Florida following the launch of David’s Inter Miami FC team. Asked why the couple didn’t buy a house, the source said: “The apartment provides more privacy, believe it or not….Here, they can hop into their private elevator and they don’t have to see anyone.”
My radar is pinging. While I don’t doubt that the condo is owned by both Beckhams, methinks it’s probably just another Miami property scooped up by David, since he loves the city and, even more than that, he loves being away from Victoria and their life in London. But yeah, of course it looks awful that Victoria is taking government “handouts” for her business all while purchasing a $20 million condo out of the country.
Photos courtesy of WENN, Instagram.
This does look bad but as someone who’s self employed your business finances and personal finances are two separate entities and for tax purposes it’s best to keep them that way. You and your spouse may be loaded but your business could still need funding. I would also seek available outside funds or grants to avoid making my personal funds subject to any liabilities incurred by my business.
Although it is a bad look for someone with that level of wealth to be seeking public funds, it does make sense businesswise.
It may be legal and make sense businesswise but that doesn’t mean it’s not immoral
I agree, but yeah, It’s definitely a recommended business move.
I’m self-employed and I see nothing wrong with this as well.
How is that immoral? This is business
Yeah I do understand how some will view this but let’s be realistic here. There is business viability and there is personal wealth.
Even catholic churches in the US applied for PPP loans and those churches most of the times are pretty wealthy; I don’t see anyone complaining about that!
I think this is completely unethical behavior. That this is a normal business move does not make it okay. This is why we have people like the Trumps, the biggest parasites of society, always bankrupt. It’s not money no one pays. Someone eventually pays – that means us, in taxes.
People point fingers at the poor living on food stamps, while filthy rich get hundreds of thousands from the government to support their made in China clothing line???
WTF.
VS: While I agree that what VB is doing is a different sort of thing, literally everyone is complaining about the Catholic Church applying for and getting relief funds. The church is tax-exempt, and that’s where the complaints stem from.
@Allergy, thank you for your comment – I can’t believe how many people are defending this behavior.
As long as we live in a capitalist system without protections for the vulnerables, it is hard to criticize the business moves.
Not defending the behavior, either, but it makes complete sense in a business move.
That’s also why there should be an increased private wealth tax and an income tax, to also balance the incursion of unchecked wealth.
I think most people know this, there’s a reason rich people stay rich despite failed businesses. And in general, I have no issue with that.
What I don’t understand is how these businesses don’t know it’s awful PR. I have paid attention to what the companies I regularly buy from have done these past weeks and let me tell you , I’ll make purchasing decisions accordingly.
It’s the same with big corporations. The car manufacturers here in Germany are p*ssing me off the most. They had billions in profits in the past few years and are now taking money from the government to pay their workers. And STILL want to pay dividends! WTF?
VB can’t complain now, she IS her brand. Nobody would have bought her dresses – which are not bad but also not couture – without her name attached. So now that her name is attached to taking money from the government? Boo hoo.
Unfortunately, standard business practices are unethical. This is just a case of wealthy humans not wanting to sacrifice their “wealth”. Business has been set up to benefit the wealthy and harm the taxpayers. This is basically what happened when Main Street USA bailed out Wall Street and the huge Banks with the mortgage fiasco. That harmed your average American … not your average Billionaire. It is wrong and immoral.
A Country built on these practices is in trouble. As we can see today. At least that’s my belief. There should be a way you can use your personal wealth to aid your business. If you have a fair amount of wealth, that is. It also might force owners to be more judicious about their plans and spending. And it will leave more taxpayer funds to help those who truly need it.
I agree. Business finances are not the same as personal finances. They are kept separate. If they bought a house with their personally money is no ones business.
“If they buy a house with personal money”
But there’s the rub.
When a business is successful, the transfer of that wealth is often to the personal coffers. It is so often extracted from the business for personal wealth rather than reinvesting back into the business or going to the layworker.
So they get in good times; but in hard times, it’s expected that that same wealth is protected, whereas the health of the business or stability of worker income or job security is not — and the onus to prop up the business comes from taxpayers (where the layworker ends up spending far more on taxes, relative to income, than businesses or wealthy owners).
It’s ethically wrong, egregious. And saying “yes, it’s unethical BUT that’s the way it’s structured” is not the absolution many seem to think it is — you’re making an active choice to support what’s unethical, unfair, and ultimately destructive to the country.
I absolutely agree on that in a business sense, but it hurts. It’s what Trump has been doing for years, and how the wealthy stay wealthy while others struggle. It’s legal and good business and what they should be doing, and my brain knows it, but my heart can’t accept it. And I’m a Victoria apologist through and through and through! Just something that feels icky, I guess.
I hope things change someday. There is no reason the rich need to request government furlough funds/bankruptcy. If you’re that bad at business (not during this pandemic, but in general), maybe you deserve to lose your inherited billions.
meh. bring back the days when you are personally liable for your company’s failings and lack of business acumin. company gets into debt? Bail it out yourself or go bankrupt. There are many deserving companies going broke in the UK right now which should be bailed out over VB. And good business or no- its terrible PR to be house shopping right now.
This is not a great look. Money wise or marriage wise or PR wise.
What a d*ck move. The money they borrowed could have gone to people who are not already millionaires.
I have literally never heard anything about her Fashion like until today. I didn’t know that she had one. I have thought for a while that she and David were going to divorce, it seems like they have the celebrity “you do you as long as you don’t embarass me.” Thing going on.
The business borrowed it not them! huge difference
The money they borrowed would have gone to another rich person.
So that makes it okay? Of course this is not okay! The whole system is a massive house of cards.
This ticks me off because I personally know 4 small business owners who were repeatedly denied loans the last two months and they’ve all struggled to stay afloat, yet bigger businesses like this all over the world are getting bailed out. I know her personal wealth has nothing to do with her business, but this is just wrong. Taxpayers shouldn’t be forced to help pay for her failing business when she has millions in the bank.
Exactly! I cannot believe the comments excusing this kind of greedy, capitalist bullshit.
This is SO wrong and I want people to wake up.
This wasn’t a bail out loan though (that is apparently, wrongly, rife with issues), it was furlough, which is reportedly going very smoothly. Completely different providers (banks vs government).
Regardless, business-wise financially, it makes sense. They’re two different entities. Business-wise optics/PR – who advises these people, seriously? Bad move.
Yah Jess, it is not okay to argue “business-wise it makes sense”. It is unethical. It’s how inequality continues and increases. It is how humans like Trump come into a lot of their money. It is just unethical and wrong. Our institutions weren’t built on what is ethically right, what is moral and what is helping the greater good. It is why the family that owns Walmart wanted the employees to buy their own uniforms … instead of supplying them for the employees. It might be standard “business practice” but it doesn’t mean these business owners aren’t as*&oles. I would love to see stuff like this changed in the future. Hopefully the Pandemic points out the incongruities like this.
What a selfish greedy thing to do. It speaks VOLUMES about her character.
I’m not a fan of either of them—him with his chipmunk voice and her with her endless posing. And their oldest child seems like an entitled punk.
I’m sure both their heads are very far up their own asses, and I wouldn’t be surprised if certain adult children are the same. And Victoria could always do a reunion show and have that success back massively on her own and make millions instantly.
But honestly these too are messy and it just seems less trashy because of the accent.
I will never understand how an APARTMENT can cost 20 million. A house maybe, but…? That just seems like a silly investment even for a millionaire celebrity.
I think you should check out apartments in Manhattan/SF; some can go for way more than $20m
Posh, is that you? GTFO with your snobby comments. EAT THE RICH.
Whoa, ChillyWilly. I think VS was just saying that the market for real estate in large cities is higher than a person who doesn’t live in one or doesn’t have that kind of wealth may realize. I don’t think VS said that it was acceptable etc, just clarifying that an apartment is not a silly investment in some cities for some celebrities.
(for context, I live in upstate NY and have no money)
Like they say, location, location, location.
Also, won’t sports teams be a losing investment for some time?
The privacy argument sounds silly.
I can’t believe she had the nerve to ask for emergency public funds for her business.
I remember her dresses with the exposed zipper being everywhere for a while, but I guess she hasn’t done much popular stuff since?
I’m confused. They’re multimillionaires, but they take a bank loan of $12 million to buy the apartment? That’s over half the value of the purchase. Why do they even need that? Because they don’t want to liquidate/sell other assets? So then all their money’s in property/investment but they don’t actually have millions lying around? Or they do, but they choose to use a bank loan (which they will have to pay interest on) to fund the new apartment? That’s weird.
And I get that personal/professional income is different, but one would assume they do have $200.000 around to make up for whatever needs the company may have; I also don’t get, from a business side, why Victoria doesn’t hire a business manager to make the company more successful, something’s definitely off with her company if she’s losing that much money and for whatever reason doesn’t believe in herself enough to put the money into her company. I know that I’d do that before asking for taxpayer money.
Rates are very low right now, and yes, they probably didn’t want to liquidate that much cash.
Like Lucy2 said, interest rates are incredibly low. It might be that they are getting higher interest on investments than they pay on the loan. Liquidating anything that earns a higher interest than they pay on that load would of course make no sense. This is why these low interest rates are benefiting the rich.
very very simple: interest rates are very low. It makes sense for any rational person to take a loan right now than to liquidate any other investment to get Cash.
I suggest reading what central banks are doing right now to understand the incentives of those with money to invest or with businesses
Thanks! I have zilch idea on how rates & banks & loans work, I was thinking more along the lines of PR and the personal image they’re also projecting, so I know I’m oversimplifying certain aspects; appreciate the info!
Except she didnt furlough her staff – the decision was reversed (after she got criticised)
https://www.theguardian.com/fashion/2020/apr/30/victoria-beckham-reverses-decision-to-furlough-fashion-label-staff
THANK YOU! I was scrolling down, hoping someone might point this out!
no problem!
Doing the math on that, she doesn’t appear to pay her staffers very well. I’m not surprised to find that she’s as greedy as the rest.
Am I the only one who’s so over Victoria’s “I can’t possibly smile in public” pose? Ugh!
Businesses do this all the time. I don’t mind it as much when it’s smaller business, where the owners don’t likely have extensive cash flow, but I do find it gross when it’s the ultra-wealthy. Which is why none of you should ever feel bad about taxing the ever living f*ck out of the wealthy. Trust me, they’re successful at your expense far more often than you realize.
It matters little to me that this is how business is done. Come on, they’re part of the 1%, they are rich beyond our imagination, why would they benefit from any tax payers money for their business? Their personal finances are flourishing in the hundreds of millions, they can use that money to keep their business afloat. It’s infuriating!
I think the requested UK government loan was to pay furloughed workers not a business bail-out loan.
What is the current dirt and strong tea on their marriage. I know there were problems years ago but I did realize these problems were on-going.
Is is a matter of staying together for the sake of the “brand”?
I think so, to me they are just like William and Kate, jay-z and Beyoncé and Kim and Kanye. They stay together because of ‘the brand’. They don’t want the hassle of announcing a separation, and all the messy press drama that will follow. Also they will have to separate assets, and not to mention their individual ‘star power’ won’t be as strong without their super star other half. Just easier to live separate lives.
Her eyeshadows are actually pretty nice. I like her make-up. It’s nice especially for those of us who don’t want to try on a million different products. I also remember seeing that she did not furlough her staff either.
Rich people are always disgusting.
I checked the website and it is an amazing building. But, $20mil for an apartment? Granted it’s an entire floor, high up with amazing views, but still. Imagine the monthly maintenance fees. In humid, flat as a pancake, hurricane battered Miami. Oh to have serious money.
They are vile people who don’t make a move that doesn’t come off like a business decision.
Marriage is not a brand. Or it shouldn’t be.
Are they leading separate lives? Their brand I haven’t bought since Rebecca Loos…