My preferred way of creating background textures is Bevel & Emboss > Texture. This one comes with Photoshop but you have to load (append) it from the drop-down, and is in the set Artist's Surfaces.

I didn't do the whole thing, but you'll get where I am coming from. I was also lazy with the embroidered texture — something I need to fix for my own texture library, as this is not the first time I need to use it and didn't have it.

The outer ring has 'distressed' edges as well as the texture in the original. The way I do that is to Ctrl click to load as a selection and add a layer mask, and distort the layer mask with something like Ocean Ripple (Hmmmm that has me thinking of ice cream
) To get the most out of this method, you need to Contract the selection a wee bit so it eats into the graphic.
