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Top Gear deal nets Jeremy Clarkson multi-million pound payout Top Gear deal nets Jeremy Clarkson multi-million pound payout
(about 4 hours later)
It is the testosterone-fuelled, high-octane motoring show beloved by the nation. But never before has talking about fast cars proved so lucrative for Jeremy Clarkson, who has scooped a multi-million pound windfall signing a new deal to present Top Gear for three more years. It is the testosterone-fuelled, high-octane motoring show beloved by the country. But never before has talking about fast cars proved so lucrative for Jeremy Clarkson, who has scooped a multimillion pound windfall signing a deal to present Top Gear for three more years.
The real engine of his financial success comes not from his on-screen presenter's fee, but from the BBC buying out his 30% stake in a company set up to exploit the commercial opportunities generated by the hit BBC2 motoring show that Clarkson helped to reinvent a decade ago.The real engine of his financial success comes not from his on-screen presenter's fee, but from the BBC buying out his 30% stake in a company set up to exploit the commercial opportunities generated by the hit BBC2 motoring show that Clarkson helped to reinvent a decade ago.
Co-presenters James May and Richard Hammond are also committing to BBC2's most popular programme for another three years.Co-presenters James May and Richard Hammond are also committing to BBC2's most popular programme for another three years.
But it is Clarkson who is in line to make the most money because, unlike his on-screen colleagues, he was a shareholder in a joint venture with BBC Worldwide – the corporation's commercial arm – responsible for live shows, DVDs and licensing Top Gear spin-offs around the world.But it is Clarkson who is in line to make the most money because, unlike his on-screen colleagues, he was a shareholder in a joint venture with BBC Worldwide – the corporation's commercial arm – responsible for live shows, DVDs and licensing Top Gear spin-offs around the world.
Clarkson's financial arrangements with the BBC already meant he was easily the best paid man working at the corporation, earning somewhere over £3m last year – but apart from a six-figure presenting fee for Top Gear, most of his income came from commercial activities. Clarkson's financial arrangements with the BBC already meant he was easily the best-paid man working at the corporation, earning somewhere over £3m last year – but apart from a six-figure presenting fee for Top Gear, most of his income came from commercial activities.
The other likely multimillionaire is Andy Wilman, Top Gear's producer – who was at Repton school with Clarkson – and who is also credited with revitalising a show that faced the axe by the BBC, by turning it into a boys-own racing and reviewing adventure format with global appeal. The other likely multimillionaire is Andy Wilman, Top Gear's producer – who was at Repton school with Clarkson – and who is also credited with revitalising a show that faced the axe by the BBC, by turning it into a boys'-own racing and reviewing adventure format with global appeal.
Clarkson and Wilman – with a 20% stake – together owned half of a company called Bedder 6, which was set up with the BBC five years ago. Originally designed to keep the pair loyal to the hugely successful programme, and reduce the amount of money paid out by the licence fee payer, Top Gear's global success meant that both men made significant sums.Clarkson and Wilman – with a 20% stake – together owned half of a company called Bedder 6, which was set up with the BBC five years ago. Originally designed to keep the pair loyal to the hugely successful programme, and reduce the amount of money paid out by the licence fee payer, Top Gear's global success meant that both men made significant sums.
The new on-screen agreement for Clarkson sees the BBC buying out Clarkson and Wilman's stakes in the lucrative Bedder 6, handing them an unspecified – but substantial – windfall. BBC Worldwide will now take full control of Bedder 6 and the profits it produces. The on-screen agreement for Clarkson sees the BBC buying out Clarkson and Wilman's stakes in the lucrative Bedder 6, handing them an unspecified – but substantial – windfall. BBC Worldwide will now take full control of Bedder 6 and the profits it produces.
Insiders indicated that the buy-out involved a seven-figure sum. Clarkson took to Twitter to say that any suggestions that his share could be worth £10m or more were "seriously wrong". Insiders indicated that the buyout involved a seven-figure sum. Clarkson took to Twitter to say that any suggestions that his share could be worth £10m or more were "seriously wrong".
Bedder 6 made £15.2m in pre-tax profits in the year to March 2011, such is the success of the company. At that level of profit the business could be valued at between £50m and £100m – but the structure of the BBC takeover is unknown. However, Clarkson and Wilman resigned as directors of Bedder 6 two weeks ago. Bedder 6 made £15.2m in pre-tax profits in the year to March 2011, such is the success of the company. At that level of profit the business could be valued at between £50m and £100m – but the structure of the BBC takeover is unknown. But Clarkson and Wilman resigned as directors of Bedder 6 two weeks ago. Under the new deal, May and Hammond will now get a share of Top Gear's commercial revenue, in return for promoting the show around the world. But the money will be paid to them directly by BBC Worldwide, not channelled via a separate company.
Under the new deal, May and Hammond will now get a share of Top Gear's commercial revenue, in return for promoting the show around the world. However, the money will be paid to them directly by BBC Worldwide, not channelled via a separate company.
In July it emerged that Clarkson's income from the motoring programme was boosted by £900,000 to £2.7m in the year to the end of March after dividends from Bedder 6 increased from £9m from £6m the previous year. Added to his Bedder 6 fee of £350,000 and talent fee from the BBC, believed to be just under £500,000, this took the total Clarkson earned from Top Gear to more than £3.5m.In July it emerged that Clarkson's income from the motoring programme was boosted by £900,000 to £2.7m in the year to the end of March after dividends from Bedder 6 increased from £9m from £6m the previous year. Added to his Bedder 6 fee of £350,000 and talent fee from the BBC, believed to be just under £500,000, this took the total Clarkson earned from Top Gear to more than £3.5m.
There has been speculation that May and Hammond – Captain Slow and The Hamster to fans of the show – were concerned at missing out on a share of the show's DVD sales and income from live shows that went into Bedder 6.There has been speculation that May and Hammond – Captain Slow and The Hamster to fans of the show – were concerned at missing out on a share of the show's DVD sales and income from live shows that went into Bedder 6.
A BBC Worldwide spokesman said: "BBC Worldwide has agreed new commercial deals with Jeremy, James, Richard and Andy to secure Top Gear's international future for another three years.A BBC Worldwide spokesman said: "BBC Worldwide has agreed new commercial deals with Jeremy, James, Richard and Andy to secure Top Gear's international future for another three years.
"This agreement secures the commercial future of Top Gear without using a penny of licence fee money and allows us to continue to grow the brand around the world, reinvest in Top Gear and return profits to the BBC.""This agreement secures the commercial future of Top Gear without using a penny of licence fee money and allows us to continue to grow the brand around the world, reinvest in Top Gear and return profits to the BBC."
The popularity of Top Gear around the world means Clarkson and Wilman have been piling up cash at a time when other top BBC "talent" has faced pay cuts as the corporation attempts to cut costs after the licence was frozen at £145.50.The popularity of Top Gear around the world means Clarkson and Wilman have been piling up cash at a time when other top BBC "talent" has faced pay cuts as the corporation attempts to cut costs after the licence was frozen at £145.50.
Earlier this year the BBC revealed that the combined pay of its stars earning £1m-plus annually had fallen to £9.7m from £14.7m the previous year.Earlier this year the BBC revealed that the combined pay of its stars earning £1m-plus annually had fallen to £9.7m from £14.7m the previous year.
The BBC's millionaire pay club comprises between three and six stars, according to the corporation's annual report. The individuals are not identified, but are understood to include Graham Norton and Gary Lineker.The BBC's millionaire pay club comprises between three and six stars, according to the corporation's annual report. The individuals are not identified, but are understood to include Graham Norton and Gary Lineker.
Norton took a pay cut when he renegotiated his BBC deal and Lineker is expected to face pressure to take less money when his contract comes up for renewal next year. The BBC paid 16 performers more than £500,000 in the 12 months to the end of March, compared to 19 the previous year. Norton took a pay cut when he renegotiated his BBC deal and Lineker is expected to face pressure to take less money when his contract comes up for renewal next year. The BBC paid 16 performers more than £500,000 in the 12 months to the end of March, compared with 19 the previous year.
Top Gear has been identified as one of BBC Worldwide's global brands – along with the likes of Doctor Who and Strictly Come Dancing – with the potential to generate commercial revenue internationally.Top Gear has been identified as one of BBC Worldwide's global brands – along with the likes of Doctor Who and Strictly Come Dancing – with the potential to generate commercial revenue internationally.
Commercial spin-offs include versions of Top Gear magazine in 31 countries, a live tour that has visited cities including Perth, Moscow and Stockholm. The original show is broadcast in about 200 territories and local versions have been made in countries including the US and South Korea.Commercial spin-offs include versions of Top Gear magazine in 31 countries, a live tour that has visited cities including Perth, Moscow and Stockholm. The original show is broadcast in about 200 territories and local versions have been made in countries including the US and South Korea.