Brand management

Consistent isn't one of the words you'd use in describing the BBC's relationship with Jeremy Clarkson. In 2006, he formed a company with Top Gear producer (and fellow Old Reptonian) Andy Wilman, called Bedder 6, to exploit the "Top Gear" brand. Braver souls might have argued he had no such right - Top Gear, a programme about cars, was a BBC creation from way back in 1977.  It was canned in 2001, but Wilman and Clarkson pitched the idea of a one-hour format, and lo, a programme about cars was back on screen in 2002.

By 2006, Clarkson and Wilman had noted that there were 200,000 people on the waiting list to stand in a shed watching the show being recorded. The BBC was spooked by Bedder's ambitions, and possibly, Clarkson's negotiating style - and, in 2007 for a nominal investment of £100, got half the shares, plus one. But they also surrendered merchandising, some foreign sales rights and the production of stadium shows to the company - a major, unprecedented concession. And put nearly £1m into the show's production budget.

In the first full year of this new partnership, Clarkson benefited from a £200k dividend and a £117,000 payment for services, on top of his BBC presentation fee. Fast forward to 2011, and Clarkson enjoyed a £2.7m dividend, a £350k payment for services, again on top of a BBC fee.

Over the past financial year, BBC Worldwide struck a deal to buy back what they had surrendered, and moved to take complete ownership of Bedder 6. It required a total payment of £16.2m - BBC Worldwide's share of Bedder dividends over 5 years is estimated at £17m.  So, in bald terms, and taking into account the £1m ploughed into production back in 2007, CEO John Smith's deal with Clarkson and Wilman made a cash loss over the time from one of his "top brands". Though the BBC has its asset back.

Meanwhile, £8.4m of that buy-back price went to Clarkson, on top of a dividend of £4.86m, plus payment for services (and, of course, BBC performance fee).

Clarkson and Wilman had resigned as directors of Bedder in September, as a new three-year deal was announced which may bring more benefits to fellow presenters James May and Richard Hammond. The BBC is believed to have guaranteed Clarkson a £500k presentation fee for the next three years. We are not privy to the sums the presenters will be paid for "promoting the show worldwide".

Remind me again about John Smith's bonus payments...