1 00:00:01,920 --> 00:00:07,000 Speaker 1: Welcome to Brainstuff, a production of iHeart Radio, Hey Brainstuff 2 00:00:07,040 --> 00:00:11,760 Speaker 1: Lauren Bolabom here. The world was shocked when Prince Harry 3 00:00:11,800 --> 00:00:14,400 Speaker 1: and his wife Megan Markle a k a. The Duke 4 00:00:14,440 --> 00:00:17,720 Speaker 1: and Dutchess of Suessex, announced they were leaving Britain's royal 5 00:00:17,760 --> 00:00:22,119 Speaker 1: family in January of A second jolt occurred when the 6 00:00:22,160 --> 00:00:24,799 Speaker 1: two sat down for an interview with Oprah Winfrey in 7 00:00:24,880 --> 00:00:30,640 Speaker 1: March and revealed how disheartened and quote trapped they felt 8 00:00:30,680 --> 00:00:34,080 Speaker 1: by the Royal institution. They also tried to explain a 9 00:00:34,080 --> 00:00:38,320 Speaker 1: bit about how the crown operates. At one point, Marcole said, 10 00:00:38,880 --> 00:00:41,479 Speaker 1: so there's the family and then there's the people that 11 00:00:41,520 --> 00:00:45,040 Speaker 1: are running the institution. Those are two separate things, and 12 00:00:45,080 --> 00:00:48,320 Speaker 1: it's important to be able to compartmentalize that because the Queen, 13 00:00:48,440 --> 00:00:53,280 Speaker 1: for example, has always been wonderful to me. It's a complicated, 14 00:00:53,479 --> 00:00:57,400 Speaker 1: convoluted system. The royal family consists of Queen Elizabeth the 15 00:00:57,440 --> 00:00:59,960 Speaker 1: Second and her husband Prince Philip, also known as the 16 00:01:00,040 --> 00:01:03,880 Speaker 1: Duke of Edinburgh, plus therefore children Princess Charles, Andrew and 17 00:01:04,000 --> 00:01:07,959 Speaker 1: Edward and Princess Anne, and each of their spouses Elizabeth 18 00:01:07,959 --> 00:01:12,480 Speaker 1: and Phillips. Eight grandchildren and nine great grandchildren are also royals. 19 00:01:13,640 --> 00:01:16,920 Speaker 1: But this family is also part of a sprawling business 20 00:01:16,959 --> 00:01:20,880 Speaker 1: institution with thousands of employees who manage the royal affairs 21 00:01:21,640 --> 00:01:25,199 Speaker 1: as with any other company. These employees work in human resources, 22 00:01:25,240 --> 00:01:29,800 Speaker 1: public relations, information technology, housekeeping and so on, in addition 23 00:01:29,840 --> 00:01:34,560 Speaker 1: to occupying visible roles such as personal secretaries, drivers, and security. 24 00:01:35,000 --> 00:01:38,680 Speaker 1: About a century ago, King George the sixth, Elizabeth's father 25 00:01:39,080 --> 00:01:44,160 Speaker 1: dubbed this combination of business and clan as the firm. 26 00:01:44,360 --> 00:01:48,600 Speaker 1: With so many employees and such prominence, the firm requires 27 00:01:48,640 --> 00:01:52,280 Speaker 1: a lot of money to operate. In the bill came 28 00:01:52,440 --> 00:01:56,080 Speaker 1: to eighty two point four million pounds or about a 29 00:01:56,160 --> 00:01:59,960 Speaker 1: hundred and fourteen million dollars US. These funds don't come 30 00:02:00,000 --> 00:02:03,520 Speaker 1: from taxpayers per se, but from a convoluted system with 31 00:02:03,600 --> 00:02:06,760 Speaker 1: real estate at its core. And here's how it works. 32 00:02:07,400 --> 00:02:10,400 Speaker 1: Every year, the UK government gives the Royal household a 33 00:02:10,440 --> 00:02:14,120 Speaker 1: monetary allotment called the Sovereign Grant. The money in the 34 00:02:14,160 --> 00:02:16,440 Speaker 1: grant is a percentage of the surplus revenue from the 35 00:02:16,480 --> 00:02:20,639 Speaker 1: Crown Estate, which is an extensive real estate portfolio belonging 36 00:02:20,720 --> 00:02:24,720 Speaker 1: to the Crown. The portfolios profits mainly come through annual 37 00:02:24,720 --> 00:02:30,840 Speaker 1: appreciation and farming in the monarchy received of the Crown 38 00:02:30,960 --> 00:02:35,640 Speaker 1: estates surplus net income jump from the previous fifteent plus 39 00:02:35,639 --> 00:02:38,720 Speaker 1: an additional ten percent allotment that will last a decade 40 00:02:38,800 --> 00:02:43,120 Speaker 1: to refurbish Buckingham Palace. The government retained the remainder of 41 00:02:43,200 --> 00:02:47,560 Speaker 1: the surplus for the article that this episode is based on, 42 00:02:47,760 --> 00:02:50,840 Speaker 1: How Stuff Works spoke via email with Laura Clancy, a 43 00:02:50,919 --> 00:02:54,760 Speaker 1: media lecturer at the UK's Lancaster University and the author 44 00:02:54,800 --> 00:02:57,960 Speaker 1: of the upcoming book Running the Family Firm, How the 45 00:02:58,000 --> 00:03:02,960 Speaker 1: Monarchy Manages Its Image and Our Money. Clancy explained that 46 00:03:03,040 --> 00:03:07,600 Speaker 1: Queen Elizabeth the Second doesn't personally own the Crown Estate. Instead, 47 00:03:07,680 --> 00:03:11,560 Speaker 1: it's a publicly owned property portfolio held in trust by 48 00:03:11,560 --> 00:03:15,840 Speaker 1: the Crown, meaning that should the entire monarchy be abolished, 49 00:03:16,040 --> 00:03:19,960 Speaker 1: all those profits would go to the public. Plancy also 50 00:03:20,040 --> 00:03:22,800 Speaker 1: notes that the sovereign grant is often reported to be 51 00:03:22,840 --> 00:03:26,480 Speaker 1: the official cost of the monarchy, but that's not quite accurate. 52 00:03:27,040 --> 00:03:30,600 Speaker 1: The Royal family security is paid for by the Metropolitan Police, 53 00:03:30,840 --> 00:03:33,800 Speaker 1: plus local councils pick up the tab for royal visits, 54 00:03:34,160 --> 00:03:39,560 Speaker 1: meaning the actual cost is greater. Working royals like the Queen, 55 00:03:39,640 --> 00:03:42,360 Speaker 1: Prince Charles Prince William and his wife Kate, the Duchess 56 00:03:42,400 --> 00:03:45,720 Speaker 1: of Cambridge, received funds from the Sovereign Grant to support 57 00:03:45,800 --> 00:03:50,440 Speaker 1: their work, travel, staff, clothing and residents renovations. They do 58 00:03:50,520 --> 00:03:53,920 Speaker 1: not receive set salaries, however, and nor are they typically 59 00:03:53,960 --> 00:03:57,600 Speaker 1: allowed to do paid work. But the Queen receives a 60 00:03:57,600 --> 00:04:01,480 Speaker 1: substantial income from the Private Duchy of Lancaster, a set 61 00:04:01,480 --> 00:04:05,000 Speaker 1: of commercial, agricultural and residential properties that was attached to 62 00:04:05,040 --> 00:04:11,160 Speaker 1: the monarchy in the year twelve sixty. As of it 63 00:04:11,280 --> 00:04:15,120 Speaker 1: generated more than million pounds for her. That's nearly thirty 64 00:04:15,120 --> 00:04:19,080 Speaker 1: five million dollars US. Similarly, as heir to the throne, 65 00:04:19,400 --> 00:04:23,039 Speaker 1: Prince Charles receives income from the Private Duchy of Cornwall, 66 00:04:23,279 --> 00:04:26,839 Speaker 1: also established centuries ago. The two will pass on some 67 00:04:26,960 --> 00:04:29,760 Speaker 1: of this income to their airs, though it isn't known 68 00:04:29,880 --> 00:04:33,600 Speaker 1: how much. And as if all of this wasn't enough, 69 00:04:33,800 --> 00:04:37,560 Speaker 1: the firm's complexity involves a lot more than money. Another 70 00:04:37,600 --> 00:04:42,159 Speaker 1: aspect that's difficult for outsiders to grasp is its myriad rules, regulations, 71 00:04:42,200 --> 00:04:47,360 Speaker 1: and traditions. Some are non controversial, like bowing or curtseying 72 00:04:47,400 --> 00:04:50,520 Speaker 1: to the Queen, but many others may seem silly or 73 00:04:50,680 --> 00:04:54,839 Speaker 1: off putting. Women are supposed to always wear pantyhose, for example, 74 00:04:54,960 --> 00:04:58,400 Speaker 1: and never cross their legs while sitting. Makeup is supposed 75 00:04:58,400 --> 00:05:00,800 Speaker 1: to be minimal, and couples are not supposed to engage 76 00:05:00,880 --> 00:05:05,080 Speaker 1: in any public displays of affection, not even handholding. Oh 77 00:05:05,120 --> 00:05:07,520 Speaker 1: and you're not supposed to close your own car door. 78 00:05:08,720 --> 00:05:12,120 Speaker 1: But who's making these rules, insisting that they be followed, 79 00:05:12,240 --> 00:05:15,719 Speaker 1: or allowing them at times to be broken. Clancy says 80 00:05:15,760 --> 00:05:20,039 Speaker 1: it's unclear. She said the operations of the monarchy are 81 00:05:20,080 --> 00:05:23,640 Speaker 1: complex and there are many different individuals involved in running 82 00:05:23,640 --> 00:05:29,520 Speaker 1: the institution, from public relations to HR to financial advisors. Furthermore, 83 00:05:29,640 --> 00:05:33,200 Speaker 1: tradition is important as it's a form of historical legitimacy 84 00:05:33,279 --> 00:05:37,240 Speaker 1: for the monarchy, and this is where things loop back 85 00:05:37,320 --> 00:05:41,840 Speaker 1: to Prince Harry and Markel because one other major component 86 00:05:41,920 --> 00:05:45,360 Speaker 1: of the firm is the Royal Rota or the Pool System, 87 00:05:45,520 --> 00:05:50,000 Speaker 1: comprising a group of reporters and photographers from seven UK publications. 88 00:05:50,760 --> 00:05:53,599 Speaker 1: For the past forty years, the royal family has granted 89 00:05:53,600 --> 00:05:57,080 Speaker 1: the Rota special access to their royal engagements in exchange 90 00:05:57,080 --> 00:06:00,840 Speaker 1: for coverage, as coverage helps maintain the monarch key's relevance. 91 00:06:01,680 --> 00:06:06,200 Speaker 1: These press members are expected to share material with each other. Today, 92 00:06:06,400 --> 00:06:09,320 Speaker 1: four of the rod of publications are tabloids, including The 93 00:06:09,400 --> 00:06:12,880 Speaker 1: Daily Mail and Son, and these ROTA journalists often write 94 00:06:12,880 --> 00:06:17,719 Speaker 1: about marcle harshly and sometimes in racist ways. One of 95 00:06:17,720 --> 00:06:20,360 Speaker 1: the biggest reasons that the couple left the Royal family, 96 00:06:20,520 --> 00:06:24,160 Speaker 1: according to the Winfrey interview and other press accounts, appears 97 00:06:24,160 --> 00:06:27,000 Speaker 1: to be their distress and discussed with the ROTA and 98 00:06:27,040 --> 00:06:31,000 Speaker 1: their wish to escape its orbit. UK's National Union of 99 00:06:31,080 --> 00:06:33,760 Speaker 1: Journalists expressed concern at the time of the decision in 100 00:06:34,520 --> 00:06:37,840 Speaker 1: to leave the ROTA, stating that as the Royal Family 101 00:06:37,960 --> 00:06:41,080 Speaker 1: is partially funded by the public quote, we cannot have 102 00:06:41,120 --> 00:06:43,920 Speaker 1: a situation where journalists writing about the Duke and Duchess 103 00:06:43,920 --> 00:06:46,240 Speaker 1: of Sussex can only do so if they have the 104 00:06:46,320 --> 00:06:51,719 Speaker 1: Royal Seal of approval. And although their separation from the 105 00:06:51,800 --> 00:06:55,120 Speaker 1: firm and the ROTA means no more income from the 106 00:06:55,160 --> 00:06:58,080 Speaker 1: Sovereign Grant or the Duchy of Cornwall, the two should 107 00:06:58,080 --> 00:07:01,440 Speaker 1: be just fine. In step back from their royal duties. 108 00:07:01,560 --> 00:07:03,839 Speaker 1: Harry and Megan, as they would now like to be called, 109 00:07:04,200 --> 00:07:06,960 Speaker 1: are allowed to earn a living on their own. The 110 00:07:06,960 --> 00:07:10,160 Speaker 1: couple quickly inked a three year podcasting deal with Spotify 111 00:07:10,400 --> 00:07:13,680 Speaker 1: it's allegedly worth twenty five million dollars, and a five 112 00:07:13,760 --> 00:07:17,720 Speaker 1: year Netflix deal allegedly worth over a hundred million. These 113 00:07:17,760 --> 00:07:22,000 Speaker 1: deals will allow them to produce documentaries, films, podcasts, kids programming, 114 00:07:22,040 --> 00:07:30,120 Speaker 1: and other content down the Road. Today's episode is based 115 00:07:30,160 --> 00:07:33,080 Speaker 1: on the article the Firm Versus the Family? How does 116 00:07:33,160 --> 00:07:36,520 Speaker 1: the British Monarchy Really Work? On how stuff works dot Com? 117 00:07:36,560 --> 00:07:39,880 Speaker 1: Written by Melanie Radzkie McManus. Brain Stuff is a production 118 00:07:39,920 --> 00:07:41,920 Speaker 1: of I Heart Radio in partnership with how stuff Works 119 00:07:41,960 --> 00:07:44,680 Speaker 1: dot Com and is produced by Tyler Clang. Four more 120 00:07:44,720 --> 00:07:48,240 Speaker 1: podcasts my heart Radio, visit the iHeart Radio app, Apple Podcasts, 121 00:07:48,320 --> 00:07:50,000 Speaker 1: or wherever you listen to your favorite shows.