SINCE TIME BEGAN : salus populi suprema est lex - the right of the people is the supreme law : IN TRUTH WE TRUST
THE ROYAL FIRM - MONARCHY PLC - SOVEREIGN GRANT - ROYAL WARRANTS
Forbes : Review-1 - Review-2 : 2021
"The menacing moniker dates back more than 80 years to the period following the most divisive episode in modern royal history—the 1936 abdication of Edward VIII. Alternatively attributed to Queen Elizabeth II’s father, King George VI, who succeeded his older brother, and her husband, Prince Philip, the darkly accurate nickname for the senior members of the family stuck. The Firm—also known as “Monarchy PLC”—are the public faces of a $28 billion empire that pumps hundreds of millions of pounds into the United Kingdom’s economy every year. The lavish televised weddings (the boost to the U.K. economy from Harry and Meghan’s royal wedding was an estimated $1.5 billion), buzzy tours of Commonwealth countries and public displays of pomp and circumstance generate massive interest—and profits—for a global business enterprise that spans from prime real estate in central London to remote farmlands in Scotland.
The saga of the royal family has also been a mother lode for the British media. In the Oprah interview, Markle spoke of the “invisible contract” with the tabloids, describing a relationship that is at once symbiotic, sycophantic and sinister. It’s also been great for newsstand sales and TV ratings. Three years ago, Brand Finance, a U.K.-based brand valuation firm, estimated The Firm’s contributions to the media industry at nearly $70 million. That number seems small after Harry and Meghan’s interview was broadcast in more than 60 countries. And even the prince acknowledged that they have watched the acclaimed Netflix series The Crown.
Who gets to be part of The Firm and reap the benefits has become a point of great contention over the years. Following Harry and Meghan’s departure from official duties, the number of full-time senior royals has been winnowed down to eight. Aiding Her Majesty as members of The Firm are an elite group of seven royals: Prince Charles, who is next in line for the crown, and his wife, Camilla, the Duchess of Cornwall; Prince William, second in line to the throne, and Kate, the Duchess of Cambridge; Princess Anne, the Queen’s daughter; and Prince Edward, the Queen’s youngest son, and his wife, Sophie, Countess of Wessex. According to historian and royal commentator Carolyn Harris, the move to narrow the inner circle is as much about consolidating resources as it is about maintaining reputational control.
“These efforts to streamline are clearly trying to counter public opinion concerned about the Sovereign Grant going to too many people and there being too much funding for minor royals,” Harris says.
The organizational chart of The Firm is a testament to the 1,000-year-old family business, and the public perception that sustains it is vital to its success. “It is a very formalized influencer business,” explains David Haigh, chief executive of Brand Finance. Unlike a celebrity family such as the Kardashians, however, the Windsors don’t personally profit from the business itself—although they contributed an estimated $2.7 billion annually to the U.K. economy prepandemic. The impact the royal family has on the U.K. economy is mostly through tourism, but Haigh notes there are other financial benefits, such as free media coverage of Britain (which was an estimated $400 million in 2017). There are also many valuable royal warrants granted by the monarch—essentially a stamp of approval on high-end consumer products like Barbour jackets and Johnnie Walker whisky. Haigh estimates that a royal warrant can boost the holder’s revenue by as much as 10%. The economic advantages for companies and institutions in the royal family’s orbit far exceed the $550 million cost associated with the family’s massive operating expenses, according to Haigh.
Not everybody wants to be a part of the monarchy machine, however. The enormous pressures that come with the job have driven members out of the family, including, of course, Princess Diana and now Harry and Meghan. It has not always ended well for those who leave—or are pushed out—but armed with powerful celebrity friends in America and several Hollywood deals, Harry and Meghan may find themselves far better off financially (and emotionally) than those, in the words of Prince Harry, who remain “trapped.”
Elizabeth Corp.
Since she inherited the throne from her father in 1952, Queen Elizabeth has chaired The Firm—even if she doesn’t have the final say over how the business is managed. Prince Philip, the 99-year-old patriarch of the Windsor family, was once a powerful member of The Firm, but he has formally stepped back from his official duties. In addition to losing Prince Harry, the Firm ousted another senior member in the past year, after Prince Andrew’s close relationship to late pedophile financier Jeffrey Epstein was exposed—and he had a disastrous television interview of his own in 2019.
Beyond the extended family, the House of Windsor has thousands of employees around the world. Buckingham Palace alone employs some 1,200 people—even if they aren't always paid a Queen’s ransom to work there. An entry-level IT specialist can make upwards of $40,000 a year, as well as benefits, at Buckingham Palace, according to a recent job listing on an official palace portal. The Crown Estate, the institution that oversees the assets of the monarchy, also employs an additional 450 people, including a board of directors that make the financial decisions for the monarchy.
Being a member of The Firm also comes with high expectations for keeping the moneymaking machine running for generations to come. The crown holds, but cannot sell, nearly $28 billion in assets through the Crown Estate ($19.5 billion), Buckingham Palace (est. $4.9 billion), the Duchy of Cornwall ($1.3 billion), the Duchy of Lancaster ($748 million), Kensington Palace (est. $630 million) and the Crown Estate Scotland ($592 million). Forbes also estimates that Queen Elizabeth has another $500 million in personal assets.
In the fiscal year ending March 31, 2020, the Crown Estate pulled in more than $700 million, with more than $475 million in profits. The royal family receives 25% of the Crown Estate income, which is also known as the Sovereign Grant, and the remaining 75% goes to the British Treasury. The latest Sovereign Grant received by the royals was roughly $120 million, which the family uses solely for official expenses, which include payroll, security, travel, housekeeping, maintenance costs and IT expenses. The private expenses of the Queen, and her extended family, are also supported by another allowance through the Duchy of Lancaster called the Privy Purse. In the latest fiscal year, the Duchy of Lancaster reported a net profit of $30 million.
As with any business, the pandemic has taken a toll on royal revenue. In September, the Keeper of the Privy Purse acknowledged that the royal balance sheet faced a potential $45 million shortfall, mostly due to a major drop in tourism and visits to royal landmarks in the U.K. because of lockdowns. He also added that the royals wouldn’t be asking for extra funding from the Treasury. Not that the Queen needs to fill her coffers. Her Majesty’s $500 million in personal assets is thanks to her investments, art, jewels and real estate, including two castles: Sandringham House and Balmoral Castle. The bulk of that will pass down to Prince Charles when he finally ascends the throne. And like his mother, he won’t directly own most of that $28 billion, which includes the Queen’s personal wealth, the assets under the Crown Estate, its holdings in Scotland, the Duchy of Lancaster, the Duchy of Cornwall and two palaces: Buckingham and Kensington.
Charles, Inc.
Now 72, Prince Charles has the second-biggest operation within the royal family. As the Duke of Cornwall, Charles gets an income from the Duchy of Cornwall in addition to what he already receives from the Sovereign Grant. The Duchy was founded in the 14th century by Edward III to keep his first-born son occupied (and flush) while waiting to become king. Nowadays, the Duchy has a staff of 150 managing a portfolio of more than 130,000 acres of property across southwest England worth nearly $1.3 billion.
As with the Crown Estate, Prince Charles cannot sell the assets belonging to the Duchy, but he can earn money from them. By renting out property to retailers, farmers and residents, the Duchy brought in more than $50 million in revenue last year, $30 million of which went to the Prince of Wales and his descendants to support their respective staffs and operations. Even without the crown, the Duchy of Cornwall is far more lucrative for Charles than the Sovereign Grant, which paid him less than $2.5 million last year. Of that, $7.3 million funded the Prince’s 132 personal staffers, $6.75 million went to taxes and $4.4 million was dedicated to charitable activities, including the Prince’s Trust, Charles’ charity to help unemployed youth.
A good portion of this income has also been used to support his sons. Prince William and Prince Harry received a combined $7.8 million last year to support their own operations, but as Harry suggested in the Oprah interview, that is no longer the case for him. In the same interview, Meghan also suggested that part of what fueled the couple’s departure was the family’s intention to deny their son, Archie, from assuming the title of prince, along with the financial support from being a working royal. This, royal historian Harris says, is the manifestation of Charles’ particular focus on limiting the number of senior members—and consolidating the resources—of the family. Even if the decision to shut out Archie was strictly business, Harris notes that “the optics of that are not good, as that could be interpreted as excluding a mixed-race member of the royal family.”
“The worst possible accusation in their speech to Oprah was that the royal family is racist,” Brand Finance’s Haigh says. “That would damage the economic effect [of royals].” In her first statement after the Sunday interview, the Queen addressed the matter in an effort to mitigate the gallons of negative press ink spilled covering the scandal. “The issues raised, particularly that of race, are concerning,” Her Majesty said in her official announcement. “Whilst some recollections may vary, they are taken very seriously and will be addressed by the family privately. Harry, Meghan and Archie will always be much loved family members.”
William, LLC
The first son of Prince Charles and third in line to the throne, Prince William, does not have a direct source of income through his father’s Duchy—but he and his wife, Kate, certainly have the power to boost the sales of brands without the royal warrant, which, according to Brand Finance, added more than $165 million to the U.K. economy annually in 2017. Kate’s halo effect has often increased the sales of brands she is seen wearing or even those that emulated her style. In 2015, G.H. Hurt & Sons, which made Princess Charlotte’s baby shawl, recorded 100,000 visits after photos of the newborn appeared in the British press.
The Duke and Duchess of Cambridge don't receive any money from their influence, however. Now 38, William receives an annual income from the Duchy of Cornwall to cover his family’s private expenses. In the fiscal year ending March 2020, the prince received a portion of nearly $8 million, which he had to share with Prince Harry and Meghan Markle before they announced they were stepping away from their royal duties. Yet the Duke of Cambridge is not fully dependent on the income from the Duchy—neither is Harry. Part of the estate of their late mother, Princess Diana, went to the princes on their 25th birthdays. Thanks to what he inherited from Diana—which Forbes estimated to be $10 million—Harry and his family were able to settle down in California, he told Oprah on Sunday, after his family “literally cut [him] off financially.”
Going Out Of Business
Being cut off from the British royal family is hardly a financial death sentence. Now settled down in a $14.7 million Santa Barbara mansion in California, Harry and Meghan have several sweet deals to sustain them over the next few decades. The income will be necessary to fund round-the-clock security, which could cost as much as $4 million per year.
They also have multiple revenue streams. In December, the couple released their first podcast with Spotify, called Archewell Audio. That same month, the couple signed a three-year podcasting deal with the music giant that could be worth from as much as $15 million to $18 million, Forbes reported in February. This is in addition to the Apple TV+ series on mental health that Harry will executive produce with Winfrey for an undisclosed sum and a $100 million, five-year Netflix deal the royal couple signed in September. They are expected to produce documentaries, docuseries, feature films, scripted shows and children’s programming for the streaming service, and also rake in nearly four times the allowance they received from the Duchy of Cornwall.
Choosing Winfrey to conduct their first post-royal interview was as good for their future endeavors as it was for television. When Meghan opened up about her struggles with suicidal thoughts during her time at Frogmore Cottage and not having access to mental health support, Oprah mentioned her partnership with Harry. “No one should have to go through that,” she said instantly. “You know Harry and I are working on this mental health series for Apple, so we hear a lot of these stories.”
Free from the constraints of The Firm, Harry and Meghan will not likely struggle financially as his great uncle, King Edward VIII, did when he gave up the crown to marry an American divorcée, Wallis Simpson, in the 1930s. As Brand Finance’s Haigh notes, if they expand beyond their Netflix and Spotify deals and delve into jewelry and apparel, “Harry and Meghan could become a $1 billion brand.”
Only Elizabeth II can call several palaces home, don Cartier tiaras, own rare paintings, collect Thoroughbreds, and match endless colorful hats with a rainbow of outfits without being a billionaire. Her Majesty, who has worn the crown since 1953, lives the life of the ultrarich but is nowhere close to being one of the wealthiest in the world—or even her United Kingdom. The Queen’s nine-figure net worth—estimated at $500 million—lands her way below the 2,153 billionaires on Forbes’ list this year. And yet she enjoys a lifestyle any of them would surely envy.
The 93-year-old directly owns some assets like Balmoral Castle in Scotland and Sandringham Estate in Norfolk, but many of her most valuable assets like Buckingham Palace are owned by a body called the Crown Estate.
If she were to possess the Crown Estate—which includes a myriad of properties in the U.K. and is owned by neither the government nor the royal family—as well as the Duchy of Lancaster (a private trust governed by the same ownership rules), Forbes estimates that the Queen would be the richest person in the U.K. (and the third-wealthiest woman in the world) with a net worth of more than $25 billion. And even that number doesn’t take into account the value of the Royal Collection Trust, which, with its Fabergé eggs and Rembrandt paintings, could be worth in excess of a billion dollars.
And she does earn a living. The Queen derives an annual income from the properties held by the $18 billion Crown Estate and the Duchy of Lancaster, a real estate trust dating back to 1265, that paid her $27 million (pretax) in fiscal year 2018 for personal expenses. The Sovereign Grant, which equals 25% of the income from the Crown Estate, goes toward the Queen’s official expenses, which include payroll, travel, housekeeping, maintenance costs and even IT expenses. (She is on Instagram, after all.) And none of that includes any winnings she earns betting on her beloved racehorses.
Naturally, Queen Elizabeth’s eldest son, Prince Charles, is not as wealthy as his mother—yet. The 70-year-old Prince of Wales derives his annual income from the Duchy of Cornwall, which manages a real estate trust that largely consists of 131,000 acres and more than $450 million in commercial assets within the U.K. The proceeds from Cornwall cover not only the annual expenses of Prince Charles but also of his two sons and their families: Prince William, the Duchess of Cambridge and their three children; and Prince Harry, his wife, Meghan Markle, and baby Archie. Though considerably more modern and down-to-earth than their grandmother, the young Windsors live like, well, royalty. In 2018, the families of William and Harry had $6.1 million in personal expenses, although the royals' official financial statements do not detail what those expenses were.
Despite the endless fascination with the royals around the world, there is a faction in the U.K. who believe the family is a burden on taxpayers. That’s not necessarily the case, however, according to Richard Haigh, the managing director of Brand Finance, a U.K.-based valuation company. “Last year, we valued the boost to the U.K. economy from Harry and Meghan’s royal wedding in Windsor at almost $1.5 billion,” Haigh told Forbes. And in its latest report on the monarchy from 2017, Brand Finance estimated that the family is responsible for more than $700 million in annual tourism.
$18.7 billion: The real estate owned in Great Britain by the Crown Estate and its Scottish counterpart. The Queen technically owns this portfolio of commercial and industrial properties, but she cannot sell any of it.
$4.7 billion: According to Lenka Duskova of the Czech real estate agency Luxent, the value of Buckingham Palace, the 775-room residence of the United Kingdom’s sovereigns since 1837, would be worth a little bit more than Richard Branson. (Not that the royal family is looking to move.)
$1.3 billion: The net assets of the Duchy of Cornwall, which spans 131,000 acres. Its portfolio include the Isles of Scilly, residential and commercial properties in London and Llwynywermod, the Welsh home of Prince Charles and Camilla Parker-Bowles, the Duchess of Cornwall.
$740 million: The net assets of the Duchy of Lancaster, which includes some 46,000 acres of land in England and Wales acquired by the Duchy over seven centuries, London’s Savoy Chapel (built in 1512), as well as limestone and sandstone quarries and a gypsum mine.
$600 million: The value of Kensington Palace, the childhood home of Queen Victoria and the residence of young royals for more than three centuries, according to Luxent. The Duke and Duchess of Cambridge and their three children live in Kensington Palace 1A, a 20-room, four-story “apartment.”
$428.2 million: The profit turned by the Crown Estate in 2018, which was deposited into Britain’s Treasury rather than the Queen’s many purses.
$145.6 million: The combined assets held by Prince Charles’ charities, which support economic, environmental and social causes in Britain and around the globe.
$46.7 million: The amount spent on charitable activities in 2018 by Prince Charles’ philanthropic organizations.
$31.5 million: The value of Princess Diana’s estate at the time of her death, according to her will. The bulk of that sum went to her sons, Princes William and Harry, each of whom inherited a share on his 25th birthday. The remainder was split between her 17 godchildren and her former butler Paul Burrell, who received £50,000 (about $81,000).
1,762: The number of offshore wind turbines that are part of the Crown Estate.
200 billion: The number of times the image of the Queen on U.K. postage stamps has been reproduced. The design has not changed since 1967 and is believed to be the most reproduced work of art in history.
$17,627,021: Amount that the jewelry and Fabergé items from the collection of Princess Margaret brought in at Christie’s in 2006. The exquisite pieces included the Poltimore Tiara—made in 1870 by Garrard for Lady Poltimore, the wife of the second Baron Poltimore and Queen Victoria’s treasurer—which sold for $1.7 million.
$2,423,050: The amount an unused Mauritius “Post Office” twopence from 1847 (No. 13)—which mirrors the piece widely regarded as the most valuable stamp in the Royal Philatelic Collection (No. 14)—sold for in 1993. The prized collection—which has never been appraised—also boasts one of two 1854 Bermuda “Perot” stamps still in existence, the other having last sold for $340,000 in 1996.
$2.2 million: Meghan Markle’s net worth based on her salary from Suits. The Duchess of Sussex starred as Rachel Zane on the legal drama for seven seasons and earned an estimated average of $57,500 per episode.
$1,039,758: The auction price of the 1955 Rolls-Royce Phantom IV belonging to Queen Elizabeth sold at Bonhams’ Goodwood Revival Sale in September 2018. The previous year, a bespoke 2001 Daimler Super V-8 commissioned by the Queen fetched $55,575—and in November 2016, Princess Diana’s beloved 1994 Audi Cabriolet sold for $59,500 at Silverstone Auctions’ NEC Classic Motor Show sale.
$583,000: The total earnings of Queen Elizabeth’s champion horses in the past year, according to the British Horseracing Authority. The Queen’s most valuable horse of all time, Estimate—an Irish-bred, British-trained Thoroughbred that won the Queen’s Vase at Royal Ascot in 2012 and the Ascot Gold Cup the following year—collected more than $487,000 in prize money before retiring to the Royal Stud at Sandringham in 2014.
$222,500: The amount a midnight-blue velvet Victor Edelstein evening gown Princess Diana wore to a 1985 state dinner at the White House hosted by President Reagan—where she famously danced with John Travolta—sold for at auction in 1997.
$25,277: The cost of Prince George’s tuition at Thomas’ Battersea for the 2019—2020 school year, inclusive of books and registration fees.
23,578: The number of gemstones showcased in the Crown Jewels, which are housed in the Tower of London. The Sovereign’s Sceptre with Cross has been used at every coronation since Charles II’s in 1661 and boasts the Cullinan I diamond, the largest top-quality cut white diamond in the world, weighing 530.2 carats.
$7,500: How much a slice of cake from the wedding of Prince William and Kate Middleton sold for at Julien’s Auctions in December 2014—four months after a slice of the five-tier fruitcake from Prince Charles and Lady Diana Spencer’s wedding sold for $1,375. The year before, a piece of Queen Elizabeth and Prince Philip’s 9-foot-tall, 500-pound cake sold for a relatively low $896.
$3,900: The final price of a felt-and-velvet doll from 1935 once belonging to Princess Elizabeth, which sold in December 2018. The year prior, a pair of Deans Rag Book Co. Mickey and Minnie Mouse toys—given to Princess Elizabeth and Princess Margaret by their nanny Clara Allah Knight—fetched $1,164.
1,306: The number of corgis registered in the U.K. in 1944, when Princess Elizabeth received one for her 18th birthday. Corgi registration jumped 56% that year and would continue to increase until 1960. The Queen’s influence over the corgi market is so great that when her last pup died in 2018, the Kennel Club temporarily placed the short-legged breed on its “At Risk” list.
800: The number of royal warrant holders, which range from luxury brands such as Burberry to family-run saddle maker Abbey England. The royal warrants recognize those who supply goods or services to the royal family. Brand Finance estimates a royal warrant can contribute as much as 5% of a company’s revenue."
SINCE TIME BEGAN : salus populi suprema est lex - the right of the people is the supreme law : IN TRUTH WE TRUST
