Already the highest-paid star at the BBC, Jeremy Clarkson is poised to receive a £5million windfall following the Corporation’s buyout of his stake in his production firm.
Five years ago, the Top Gear presenter co-founded Bedder 6 with the show’s executive producer, Andy Wilman, to leverage the programme’s global brand.
The pair originally held equal ownership of the company, while BBC Worldwide owned the remaining half. However, Clarkson and Wilman have now ceded full control to the BBC.
Reports indicate that the total deal for both individuals is worth approximately $12 million, with the funds coming from the BBC’s commercial division.
Additionally, it is believed that Clarkson receives an $800,000 talent fee paid by the BBC from the licence fee, which will remain unchanged if the show continues through 2015.
Furthermore, Clarkson has entered a new agreement with the corporation, ensuring his role as presenter of Top Gear for another three years.
Bedder 6 has enjoyed considerable success, generating revenue through merchandise sales, show tours, DVDs, and international rights.
A spokesperson from BBC Worldwide stated: ‘New commercial agreements with Jeremy, James, Richard, and Andy have been finalized to secure Top Gear’s global future for another three years.
‘This arrangement safeguards Top Gear’s commercial prospects without utilizing any licence fee funding and enables us to further develop the brand internationally while returning profits to the BBC.’
Controversy arose when it became known that Clarkson earned $5 million in the year leading up to March due to his Bedder 6 stake, as the company reported pre-tax profits of $25 million and is estimated to be valued at over $70 million.
Significant profits have stemmed from merchandise, show tours, DVDs, and the show’s international reach.
However, earlier this month, Clarkson and Wilman, who have maintained a friendship since their school days, stepped down, leaving BBC Worldwide as the sole owner of the company.
While the BBC has publicly stated it cannot disclose the amount paid for their stakes, sources suggest it is below £10 million.
Clarkson will continue to earn a share of the commercial revenue generated by Top Gear in exchange for promoting the show globally.
His fellow presenters have also secured a three-year deal with BBC Worldwide, indicating their ongoing involvement with the show until 2015 and additional revenue from commercial ventures, on top of their talent fees.
The payments will be made directly to them rather than through a privately held company.
The financial gains for Clarkson and Wilman arising from Top Gear’s success have left many within the BBC feeling uncomfortable, especially as the organization seeks to implement budget cuts.
by Debbie Dot
