How is Prince Andrew Paying For His Settlement With Virginia Giuffre?
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Just a few weeks ago, Prince Andrew’s lawyers filed a defiant 11-page court document denying Virginia Giuffre’s allegations of sexual abuse against him. It followed a source close to the Prince saying he would “continue to defend himself” against her claims almost two years on from his infamous television declaration that he has no memory of ever meeting her.
So when last Tuesday it was revealed that a letter filed to the judge presiding over the case, Lewis Kaplan, said that the pair had reached an out of court settlement, it was no surprise that an explosion of coverage followed. Both Buckingham Palace and the Duke of York’s (very separate) representatives stayed silent as question were fired from all angles; Why did the Prince settle rather than fight to clear his name? How much will he pay his accuser? Can he ever return to public life? And where does this leave the monarchy in the Queen’s Platinum Jubilee year?
The letter to the judge made it clear that the sum of the settlement, which included a payment to Virginia as well as a “substantial donation” to her victims’ rights charity, was “not being disclosed.” But that hasn’t prevented precise figures from being reported. The Daily Telegraph was first to declare the total amount to exceed £12 million, later breaking this down to £10 million for Virginia and £2 million for her charity. Elsewhere, legal experts have estimated the deal to be worth £10 million and other reports have put the figure going to Virginia at more like £7.5 million. No amounts have been confirmed by any of the parties involved.
There is also much mystery over how the under-fire Prince will pay, with confusion compounded by the fact that royal finances are complex and often unclear. When Prince Andrew stepped back from his role in 2019 he stopped receiving public funding for royal duties. However, he has continued to live in a royal residence and (it is believed at least because neither the royal household nor the Metropoltan Police will discuss security) receive taxpayer-funded police protection.
How much personal money he has, and has had over the years, has always been considered private and therefore undisclosed so it is difficult to know whether or not he has these kinds of sums available. Perhaps because it is one of the few facts we have about his finances, much has been made of the upcoming sale of a ski chalet in Verbier as a way of funding the payout. It was purchased in 2014 and is believed to be worth around £18 million. Andrew and his ex wife Sarah Ferguson were reported to have a hefty mortgage on the property so it remains unclear exactly how much cash a sale will unlock, although it could be in the region of £5 million. Andrew also receives an annual Royal Navy pension of about £20,000 but it goes without saying that that this is not going to go far towards a sizeable payout.
One of the biggest debates around how the Prince might pay centers on whether the Queen might put up some of the money. The idea that this would come from the annual funds she receives from the UK Treasury (known as the Sovereign Grant) is unthinkable. This money is for royal duties and the upkeep of working royal residences and all expenditure is documented in public accounts each year. (Aside from the fact that the royal household just wouldn’t use the money in this way, can you imagine the uproar if it was shown that public funds had been earmarked for Andrew’s settlement?)
Another source of the Queen’s income, the profits from the Duchy of Lancaster, is money that she receives because of her role as monarch. It is used for some official expenditure and the upkeep of residences that are considered private, such as Balmoral and Sandringham. This income is sometimes described as her private money, but because she receives it due to her role, it would raise eyebrows if this was used to pay off such a settlement for her son. She does, however also have totally private wealth and investments which we know virtually nothing about.
It has been reported that British politicians will raise the subject in Parliament to seek assurances that no public money has been spent and campaign group Republic, which is calling for Britain to have an elected head of state, put out a statement saying that taxpayers “deserve to know where the money is coming from.”
Amidst all the confusion, however, what has become increasingly clear since the settlement announcement is that Andrew has failed to buy himself back any public affection with this deal. A poll conducted by YouGov on February 17, two days after the agreement with Virginia was made public, found that 83% of British people don’t think he can return to public life. Just 8% thought he could and 9% didn’t know. He may not have admitted any responsibility for Virginia’s allegations, but by failing to completely clear his name through being exonerated at trial he has been unable to reverse the damage caused by her claims and his disastrous initial response to them in his now infamous TV interview.
Virginia Giuffre has emerged victorious, with lawyer Lisa Bloom, who represents a further eight Jeffrey Epstein victims, summing up the situation by saying “We salute Virginia’s stunning courage.”
However, with the case being brought to a close before the main celebrations for the Queen’s Platinum Jubilee this summer, the monarchy may also feel that this is a situation which the institution and other family members can now begin to move on from. Prince Andrew, on the other hand, will continue to be tainted by this for the rest of his days. And that’s something that no amount of money can change.
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