5 unanswered questions about how Prince Andrew funds jet-set lifestyle – as royal’s ‘cratering finances’ hit home
HE’S been dubbed ‘Air Miles Andy’ for his love of lavish spending, but Prince Andrew’s possible sex-case trial has raised questions about how he will afford the mounting legal bills.
Following the Queen’s bombshell decision to strip the royal of his patronages and military titles, the Duke of York could face a costly court battle with accuser Virginia Roberts Giuffre.
It has led to reports he is set to sell his Swiss chalet to fund an out-of-court settlement that could reach up to £10million .
“Even though Andrew now lives frugally at home and borrows one of his mother’s horses to ride around Windsor park instead of jetting around the world, it would seem the duke’s finances are cratering,” says royal biographer Nigel Cawthorne.
Here, the expert explores the key questions that still surround the Prince’s finances.
How much will bombshell legal battle cost?
This week, a US judge ruled that Andrew will sensationally face a court battle with Ms Giuffre.
The duke failed in his attempts to stop the case after he was sued for allegedly sexually abusing his accuser when she was just 17.
The bombshell ruling represents a hammer blow to the royal who has strenuously denied allegations made by Ms Giuffre.
Cawthorne says the mounting legal costs – which have already reached to over a million – will only spiral further, regardless of whether the trial goes ahead or a settlement is reached.
“There was first the legal team he assembled in order to deal with the FBI’s request to interview him in the UK, sent courtesy of his former pal Donald Trump as president,” he says.
“Then came the civil case brought against him by Virginia Giuffre. It has so far totted up to an estimated £1.5million and counting.
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“If the case goes to trial, his legal bills would run up to anywhere between £3million and £4.5million.
“Ms Giuffre’s lawyer David Boies has also made it clear that she would also expect a humiliating admission of guilt and an apology.
“That could be unpalatable to the prince, who told the BBC’s Emily Maitlis that he had ‘no recollection’ of meeting Ms Giuffre and wants to clear his name.
“If the trial goes ahead and the jury found for Ms Giuffre, the prince would be asked to stump up the compensatory and punitive damages that she is asking for – which, again, would run into further millions.”
What is Andrew’s actual income?
Over the years, Andrew has lived a billionaire’s lifestyle, relaxing on superyachts and jetting off to beach holidays in St Tropez.
He was snapped in 2015 wearing the latest £12,000, 18-carat Apple watch and been spotted driving a Bentley with the personal number plate DOY.
The duke gets his pension from the Royal Navy, which amounts to £20,000 a year
It is believed he no longer receives his annual £249,000 handout from the Sovereign Grant – so any further financing comes from the Queen and business interests.
Writing for The Sun, royal finance expert Norman Baker said he was told by one acquaintance: “I would compare Andrew to a hot air balloon. He seems to float serenely around in very rarefied circles without any visible means of support.”
What was truth behind controversial sale of £15m home?
The prince has previously come under scrutiny for the controversial sale of his former marital home.
Cawthorne says: “He sold Sunninghill Park in Berkshire, in 2007 for £15million – a cool £3million over the asking price after lingering on the market – to a Kazakh oligarch.
“It was a wedding present from the Queen.”
The Daily Mail claimed that Andrew also tried to persuade Coutts, the Queen’s bank, to take the oligarch, Timur Kulibayev, on as a client.
The reports followed earlier allegations that Andrew tried to broker a deal between a Greek sewage company and a Swiss finance house that would have seen him benefit from a £4million commission.
“Andrew and Fergie now live rent-free in the seven-bedroom Royal Lodge in Windsor Great Park, though he did spend £7.5million doing it up with a pool and driving range,” Cawthorne continues.
“Then there’s the ski lodge in Switzerland with reportedly six members of staff which he is selling for an estimated £18million – minus the £6.6million he still owed the previous vendor who sued him.
“The swish property was bought in 2015 with a mortgage as an ‘investment’ and a little help from the Bank of Mum which, presumably, he won’t have to pay back.”
How much is Andrew borrowing – and who from?
Last year, The Sun revealed Andrew was gifted £1.5million by a controversial businessman to pay off a loan he had taken out from a private bank.
Eleven days earlier, in 2017, Andrew had borrowed the same amount from Banque Havilland — which is controlled by multi-millionaire and former Tory Party treasurer David Rowland’s family, Bloomberg reported.
Banque Havilland denies any wrongdoing.
The payment sheds some light on the enduring mystery of Andrew’s wealth.
Cawthorne says: “Only a few months ago it became clear that since 2015 he had a borrowing facility with the Luxemburg Banque Havilland whose shares are controlled by the family of David Rowland, the one-time Tory Treasurer.
“The loan facility was increased 10 times to £1.25 million – in March 2017 for the last time by roughly the price of a Bentley to cover ‘living expenses’ among other items.
“The interest rate alone was 8 per cent and in December 2017 the amount owed stood at £1.503 million reportedly.”
Will the Queen turn off the money tap?
It has been assumed that the Queen is advancing Andrew’s legal bills from her income from the Duchy of Lancaster, Cawthorne says.
Set up the 14th century, the income from the duchy is given to the sovereign to conduct their official duties.
However, the biographer claims the Queen faces pressure from inside the family to turn off the money tap.
“It is hard to see how defending her son in a sex case in a foreign court is one of Her Majesty’s official duties,” says Cawthorne.
“Prince Charles and Prince William are understood to be furious and think that Andrew should sort out his own mess.”
Should the royals distance themselves from financing Andrew altogether, Cawthorne says his ‘cratering’ bank balance could be pushed to the brink.
“The towering amounts involved raise the question whether the prince may go bankrupt without handouts from the Civil List or Privy Purse to prop up his teetering finances,” he adds.
“If the royal family won’t help, he can always call a friend. Perhaps someone in Kazakhstan?”
