The Birmingham-born star streamed a video of him wearing a colourful outfit – and proper safety goggles – throwing two blocks of cash into a shredder on Sunday at 1pm.
He then bowed to the camera before the live-stream ended. It came after he urged Beckham to sever his World Cup deal or the money and his "status as a gay icon" would be shredded.
Alternatively, the comedian said the money would be donated to charities which "support queer people in football" if the ex-footballer, known previously as a strong supporter of gay fans and players, pulled out of the deal.
The former England captain has been strongly criticised for agreeing to be an ambassador for Qatar in a deal Lycett said is worth £10 million. Qatar bans same-sex relationships and has a poor human rights record with many football fans saying they will boycott the World Cup.
In the original video, Lycett also pokes fun at West Bromwich Albion FC as he delivered the ultimatum.
He says: "This is a message to David Beckham. I consider you, along with Kim Woodburn and Monty Don, to be a gay icon.
"You're the first premiership footballer to do shoots with gay magazines like Attitude, to speak openly about your gay fans, and you married a Spice Girl, which is the gayest thing a human being can do.
"But now it's 2022. And you signed a reported £10m deal with Qatar to be their ambassador during the FIFA World Cup.
"Qatar was voted as one of the worst places in the world to be gay. Homosexuality is illegal, punishable by imprisonment and, if you're Muslim, possibly even death.
"You've always talked about the power of football as a force for good, which suggests to me that you've never seen West Brom.
"But generally I agree, so with that in mind I'm giving you a choice.
"If you end your relationship with Qatar, I'll donate this £10,000 of my own money, as a grand for every million you're reportedly getting, to charities that support queer people in football.
"However, if you do not, at midday next Sunday I will throw this money into a shredder just before the opening ceremony of the World Cup and stream it live on a website I've registered called benderslikebeckham.com.
"Not just the money, but also your status as a gay icon will be shredded. You will be forcing me to commit a crime."
Many people have raised concerns over the rights of fans travelling to the event, especially LGBTQ+ individuals and women.