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Tom Dowd, F45’s chief executive, responded saying: “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.”
On January 10, the Superior Court of California accepted a deal by the warring parties to dismiss the legal action with both sides agreeing to pay their own costs. The legal action was dismissed with prejudice which means neither party can re-contest the matter in court.
Actor Mark Wahlberg, second left, brand ambassador for fitness chain F45, applauds as F45 listed in 2021 with Greg Norman among those in attendance. Credit: AP
The details of Norman’s deal with F45 have never been revealed apart from a mention in its financial accounts of “annual compensation” to promote F45.
In connection with the IPO, F45 recognised $US4.5 million in stock-based expenses relating to its deals with Norman, Beckham, basketballer Earvin “Magic” Johnson and former model Cindy Crawford.
The deals were signed to help the Australian fitness group build a public profile in the US as a significant part of its global expansion plans.
“Influencer marketing is a key method through which we embed F45 Training in popular culture,” F45 said of these deals in its prospectus before its $US1.6 billion stock market debut in 2021.
The most lucrative celebrity endorsement deal belonged to Wahlberg, a fitness fanatic who owns several F45 studios. He is a board member of the fitness group and a significant shareholder.
He received 2.74 million share rights, which vested with the IPO at a valuation of just under $US44 million.
Wahlberg sold more than $US10 million worth of stock in a series of trades after the float.
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He was part of a group that invested $US100 million in F45 in 2019. He and his business partners sold $US25 million worth of shares at $US16 each before F45’s public debut, and sold a further 3.2 million shares to Australian fund manager L1 Capital in 2020.
F45 started with one gym in Australia in 2013. It developed the global franchise based on 45-minute functional, high-intensity interval and circuit training classes. Trouble struck in 2022 when a loan deal, to help fund the massive growth of its franchises, fell through.
Investors, some of whom paid $US16 a share in the July 2021 public float on the NYSE, watched the stock hit a record low of just US7.26¢ just before it was ejected from the stock exchange last year.
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