Clarkson’s latest wheeze stalling with £6.7m loss
JEREMY CLARKSON and his chums have made millions through the success of motoring TV shows Top Gear and The Grand Tour.
But they are in danger of losing much of it with their social network for petrolheads, DriveTribe.
I can disclose that the company behind it, Digital Tribe Holdings — which Clarkson set up with his cohosts Richard ‘The Hamster’ Hammond and James May, along with their producer andy Wilman — lost a staggering £6.7 million last year.
It comes after losses of £8.3 million in 2017 and £4.2 million in 2016.
Earlier this year, the presenters mortgaged their business to Elisabeth Murdoch, daughter of media mogul Rupert, for only £5 million.
DriveTribe — which they created in 2016 as an online community for car lovers — borrowed the cash in exchange for security over the company and its assets.
If it fails to repay the loan in ten years, or goes bust, Ms Murdoch, an experienced media executive and investor, will take control or become a top creditor.
Her backing for DriveTribe builds on existing ties to Clarkson, a longstanding writer for her family’s newspapers and a fellow member of the so- called Chipping norton set in oxfordshire. newly filed accounts at Companies House reveal that last year’s £6.7 million pre-tax loss was run up on a turnover of £1.1 million.
DriveTribe’s chief executive, Jonathan Morris, tells me: ‘The “loss” was actually money invested in the technology platform and the team. With any start-up, there is a “building” period, where the company spends investment to create a brand, product and technology, then a “growth” period, where we focus on becoming a market leader and turning a profit.’
He adds: ‘We are now in that growth period. our plan is to be profitable towards the end of next year, for which we are on track.’
The company — which employed 42 staff paid a total of £3.6 million last year — plans to have versions of DriveTribe around the world, with apps for markets including travel, health and fitness, and even pets.