AN ‘END OF contract’ payment in RTÉ’s deal with presenter Ryan Tubridy has raised further questions in the wake of the revelation that the broadcaster failed to disclose €345,000 worth of payments since 2017.
RTÉ released a 9-page statement yesterday evening in which it outlined its understanding of how Tubridy received the undisclosed payments following an external review by Grant Thornton.
Grant Thornton partner Paul Jacobs said that in the course of his examination, then-Director General Dee Forbes told him that the task of negotiating a new contract with Ryan Tubridy’s agent, Noel Kelly, was “made all the more complex with the terms of the Talent’s existing contract as an end of contract payment was due at the end of the contract i.e. 2020”.
“This contract was negotiated and in place prior to the Director General’s arrival. RTÉ was keen to make a cost saving in respect of this ‘end of contract payment’. RTÉ was at the same time re-negotiating the Talent’s contract with the 10% cost cutting objective in mind,” the review outlines.
“As discussions, which finance and legal were also fully involved in, progressed RTÉ sought to negotiate away this ‘end of contract payment’ and looked to see if any solutions could be found to negotiate this with the main objective being to reduce the cost to RTÉ and also to retain the talent in RTÉ’s commercial interests.”
On the basis of a negotiated cost saving agreement, “RTÉ would no longer be liable for the end of contract fee that was due in 2020”.
“It was a condition of this cost saving agreement, as negotiated by the Talent’s Agent that the €75,000 payments for this Commercial relationship must be guaranteed by RTÉ.
“This cost saving agreement meant that RTÉ was no longer liable for the end of contract payment, and due to Commercial Brand’s strong record with RTÉ, RTÉ was satisfied that this agreement was a good commercial decision for reducing costs, and it was viewed as a nil risk that Commercial Brand would not perform the agreement.”
Forbes, who resigned as director general this week, also referenced the payment in a statement: “We were keen to make a cost saving for RTÉ in respect of a contractual payment which was due to be paid.”
The monetary value of the ‘end of contract’ payment is not known.
The Journal has asked RTÉ for further details and also if any other current presenters currently have ‘end of contract’ clauses in their terms and conditions.
RTÉ presenter Sarah McInerney raised the matter on Prime Time last night.
“What is an exit fee? Have you heard of this?” she asked Peter Feeney, former Press Ombudsman and former head of broadcasting compliance at RTÉ.
“I have to admit, I was entirely unaware of any exit fees in RTÉ. I certainly didn’t hear of them when I worked here,” he replied.
Senior figures from RTÉ are expected to appear before the Oireachtas Arts and Media Committee today at 1.30pm, with further appearances before the Public Accounts Committee at 9.30am tomorrow morning.
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