Meghan and Harry: Can the Sussexes really be financially independent?
The Duke and Duchess of Sussex have said they will "work to become financially independent" as they step back from royal duties.
Monday 13 January 2020 09:58, UK
The Duke and Duchess of Sussex have put the issue of money at the heart of their plan to move to a "progressive new role".
They say they will "work to become financially independent" as they step back from the frontline of royal ribbon-cutting, but offer few clues as to what this will mean in practice, and even what they mean by independent.
What they earn now
The couple's day-to-day income currently comes from two sources: the Sovereign Grant, public money paid to support the Queen's official duties; and far more significantly from Prince Charles, who passes on millions of pounds in income from the Duchy of Cornwall, a vast estate of land, agriculture, property and commercial interests.
The Sovereign Grant accounts for just 5% of Harry and Meghan's income, but it also covered the cost of the £2.4m renovation of their home Frogmore Cottage, which is owned by the Queen.
The couple say they will continue to live at Frogmore when in the UK, but want to give up the annual Sovereign Grant funding because by accepting it they are prevented from earning from what they call "professional income".
Doing so would, they say, make them "members of the Royal Family with financial independence".
Whether that is true rather depends on your definition of independence given that 95% of their income comes from Prince Charles.
The precise amount they receive is not published, but Charles' accounts show that last year he passed £5.1m to fund the Sussexes and the Duke and Duchess of Cambridge, used to fund their staff and private offices, personal and family expenses and private travel.
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All Royal security is funded by the Home Office, or by host governments in the countries they visit.
Harry and Meghan make no mention of forgoing Charles's multi-million pound support, which they may consider distinct from direct public funding, but it is another form of financial dependence.
They do point out that there is a precedent for working titled royals, probably a reference to Prince Andrew's daughters Eugenie and Beatrice, who both have jobs and the title princess.
How could they earn in future
Should Harry and Meghan try and pursue genuine self-sufficiency they will have no shortage of options and they start with significant personal wealth.
Harry inherited an estimated £10m from his mother and Meghan is estimated to be worth around £3m courtesy of her acting career.
Their greatest commercial opportunity will lie in trading off their titles, which they intend to keep.
Brand Sussex
The Sussex Royal and Sussex Royal Foundation brands were trademarked last year for use in hundreds of different applications, from goods, clothes and merchandise to social care services, educational material and charitable fundraising.
The brand will have its own value, either in its own right or via licensing deals. Prince Charles has already demonstrated there is a market for the latter with his Duchy Originals food line.
Exclusive rights to produce and sell the brand were sold to Waitrose in 2009 and the duchy receives an annual per cent share of revenues.
Much will depend on how the Sussexes choose to monetise the asset of their individual profiles and titles. Jim Prior, global chief executive of WPP branding agency Superunion, says they will have multiple opportunities.
He said: "I think the real question for Harry and Meghan, given the statement that they've released, isn't so much what are the possibilities that you want to do, but what are the possibilities that you want to exclude, so where is the focus going to be and if it is to be around socially purposeful, socially good things then that will limit the revenue earning opportunities that they will have."
Sponsorship
Sponsorship would not be a struggle. The Queen's oldest granddaughter Zara Tindall doesn't have a title - her mother Princess Anne decided her children would be better off without them - but she does have a profile, and is an ambassador for Land Rover.
Showbusiness
Meghan's background provides another potential income stream.
She was a successful actress and even if she doesn't return in front of the camera her name would bring considerable clout as a producer to film and television projects, or publishing. Given current interest "Meghan: My Story" could be expected to sell well.
If the Sussexes can end their dependence on Charles and succeed in becoming truly financially independent they might set a new funding model for spare heirs.
Whether the Royal Family and the public are ready for privatised princes and princesses is another question.