Above, a deeply distressed man taking what he thought was the only way out during the Wall Street Crash of 1929.
Sometimes one does not know whether to cheer or to commiserate. In the case of the Unfortunate British Broadcasting Corporation it is both! I cheer President Trump and commiserate with my fellow TV Licence payers – for it is we poor suckers who will have to pay whatever the courts in Florida award!
I am not going to comment in any significant manner on the minutiae of the forthcoming litigation suffice to recommend BG readers to surf onto the website of my friend Doctor Richard North who has provided an excellent take (https://www.turbulenttimes.co.uk/news/front-page/media-trumps-billion-dollar-beeb/) on the situation.
The plain simple FACT of the matter is this: IF (and the outcome of litigation is NEVER certain) the BBC looses and President Trump is awarded any amount between US$1 billion and US$5 billion, and this amount is not reduced significantly on appeal, then the money will HAVE to be found to pay President Trump – including his legal costs – which will be considerable!
Faced with a gargantuan bill, the BBC will have a number of options: It can with the agreement and co-operation of the government declare itself insolvent and call in the receiver. The receiver will then set about realising the money by selling assets – of which the BBC has many. In other words, the BBC could pay the amount demanded by selling all or part of it’s asset base. This will result either in a dramatically cut back organisation, a sale to a private enterprise (which will mean legislative change) or a dissolution of the organisation.
All these options are going to be very disruptive and ALL will seriously upset the Green, Labour and Liberal Democrat parties!
The Green, Labour and Liberal Democrat parties will of course know that the large number of TV Licence Payers within the mass of the British Public will be furious IF the government presides over an increase in the licence fee to pay President Trump and his lawyers!
I reckon that the most likely outcome (based on President Trump receiving significant damages) will be that the BBC will negotiate a secured loan with a London merchant bank to pay the damages. This will be an outcome that will be able to have the sum defrayed over a period of years. This of course will be the the profit of the merchant bank concerned!
One more thing: Litigation takes time! The BBC’s current Royal Charter, which sets out its mission, governance, and funding, is up for renewal in late 2027. If the BBC contest the suit all the way, I DO NOT expect a final resolution much before late 2027!