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You might not care about Kate Middleton, or be able to tell the Prince of Wales from Paddington Bear. For plenty of Americans, the public-relations meltdown that besieged the British royal family this week barely registers as a scandal. But here\u2019s a case for caring about the travails of the Windsor clan\u2014aside from being one of the most powerful monarchies in the developed world, the Windsors\u2019 empire is worth $28 billion. And the public uproar this week over how they handled a badly photoshopped image along with the disappearance of their most popular member is showing the cracks in the family\u2019s once-impenetrable facade.<\/p>\n
The Photoshop debacle<\/a> is just the latest in a series of flubs that have led to a popular mistrust<\/a> with royal media and with the monarchical institution itself. As concern over Kate Middleton\u2019s whereabouts grows, it\u2019s not just public perception that\u2019s at stake for the royal family\u2014the discontent could have an impact on the family\u2019s vast wealth.\u00a0<\/p>\n \u201cThe royal family\u2019s business holdings encompass vast estates, real estate, and investments. While not a \u2018business\u2019 in the traditional sense, their assets are influential, contributing significantly to their wealth and the UK economy,\u201d Stacy Jones, founder and CEO of pop culture branding firm Hollywood Branded<\/a>, tells Fortune<\/em>. What\u2019s more, \u201ctheir influence extends beyond mere financial impact\u2014it shapes cultural and societal norms.\u201d<\/p>\n \u201cThe Firm,\u201d or the most senior members of the royal family, are the faces of a $28 billion empire<\/a> that includes vast real estate holdings across the United Kingdom such as The Crown Estate<\/a>, The Duchy of Cornwall, and The Duchy of Lancaster, the latter two of which generate private income for the monarch.\u00a0<\/p>\n The Duchy of Cornwall is currently overseen by Prince William, as the eldest son of the British monarch (King Charles). The main operation of this duchy is to manage the monarchy\u2019s land holdings in England, which amount to about 135,000 acres. While William isn\u2019t allowed to sell any of the duchy\u2019s assets for personal gain, he still gets the annual revenue the land holdings generate. The duchy\u2019s assets as of 2022 were about $1.5 billion.<\/p>\n The Duchy of Lancaster, meanwhile, is a private estate consisting of a portfolio of lands, properties, and assets held in trust for the sovereign. It includes rural estates, farmland, urban developments, historic buildings, and commercial properties in England and Wales. As of 2022, the estate was worth roughly $831.5 million, and generates $25.5 million in profits each year.\u00a0<\/p>\n \u201cThere\u2019s an argument to be made that the royal family are the most important and influential people in all of England, other than the prime minister,\u201d Evan Nierman, founder and CEO of crisis PR firm Red Banyan<\/a>, tells Fortune<\/em>. \u201cThese are not ordinary people. They control enormous assets of incalculable value.\u201d<\/p>\n On top of the royal family\u2019s properties, they also earn funding from the Sovereign Grant, or the taxpayer-financed fund that pays the monarch for their official duties. For 2022-2023, King Charles made the equivalent of almost $109 million<\/a> from that grant, which is used to fund the upkeep of their properties, pay staff, and cover the cost of other royal duties like speaking engagements and visits.\u00a0<\/p>\n Even Buckingham Palace admits<\/a> that the British monarchy \u201chas sometimes been described as an expensive institution, with royal finances shrouded in confusion and secrecy.\u201d They add,\u201cthe royal household is committed to ensuring that public money is spent as wisely and efficiently as possible, and to making royal finances as transparent and comprehensible as possible.\u201d But many taxpayers disagree. Naysayers argue that public money could be spent on other things to benefit the public, like hiring more nurses and teachers<\/a>. Others say the cost of the monarchy is also a diss to the cost-of-living crisis<\/a> in the U.K.<\/p>\n Still, it\u2019s difficult to exactly calculate how much the royal family is worth to the UK\u2014after all, for all their reliance on the state, their celebrity status brings in media, creates memorabilia, attracts tourism, and generally fuels attention to the country. That\u2019s why the PR crisis involving Kate Middleton could be particularly damning to their public perception long-term, and thus diminish their business and economic impact.\u00a0<\/p>\n If you haven\u2019t seen the conspiracy theories swirling around social media and the news this week about Kate Middleton, you must\u2019ve slept better than all of the amateur sleuths out there.\u00a0<\/p>\n In mid-January, Kensington Palace released a statement<\/a> informing the public that the princess would be out of the public eye through Easter (the last weekend of March) for \u201cplanned abdominal surgery.\u201d But the news was immediately met with skepticism,\u00a0 and mistrust in the palace only grew during the past two weeks after the release of some dubious photos of Kate.<\/p>\n First, TMZ published<\/a> a pixelated photo of a woman who appeared to be Kate wearing sunglasses in a car with her mother, Carole Middleton. But it was the photo released Sunday by Kensington Palace for U.K. Mother\u2019s Day that really caused a stir. It showed the Princess of Wales with her three children (Prince George, 10; Princess Charlotte, 8; and Prince Louis, 5); it was subsequently killed<\/a> by the AP, Getty Images, Reuters, and other major news outlets after evidence emerged that it had been manipulated<\/a>. Between news organizations, photo experts, and online observers, dozens of errors were pointed out in the photo. On Monday, Kensington Palace released a statement<\/a> on X<\/a> from Kate taking the blame for editing the photo.\u00a0<\/p>\n Then, just hours after the statement, the Daily Mail<\/em> released a photo<\/a> of Kate and William in a car. William was said to be on the way to Westminster Abbey for the annual Commonwealth Day service, but Kate was heading to a \u201cprivate appointment,\u201d according to the Daily Mail<\/em>. This photo was also particularly blurry and showed only the back of Kate\u2019s head. Online observers have studied this photo and allege that it, too, was manipulated somehow, drawing comparisons to a past photo of the princess and saying that her image had been Photoshopped into that picture.<\/p>\n The steady drip of doubts, amplified by Kensington Palace\u2019s blunders, is now threatening to erode the goodwill that the royals have enjoyed.<\/p>\n \u201cAny perceived misstep or scandal\u201d could impact the family\u2019s financial holdings by decreased public support, according to Jones. Simply put, tax payers may not be as willing to shell out money for an institution they don\u2019t trust.<\/p>\n \u201cThe number one rule of public relations is to never lie,\u201d Kyle Ankney, head of public relations at Wisteria PR, tells Fortune<\/em>. \u201cAnd in a world where the general public is better than ever at discerning truth from fiction, it\u2019s very possible that the recent communications or lack thereof from the palace, may have lasting impacts on all facets of their businesses and public perception.\u201d\u00a0<\/p>\n Ankney sees only two ways the royal family can move past this. The first would be saying nothing and hoping that things \u201creturn to a level of normalcy in time,\u201d or they can give a complete debrief with all of the facts of the situation when the time comes.\u00a0<\/p>\n It\u2019s entirely possible that there\u2019s nothing more to the Kate story\u2014that she simply had surgery and needs time to rest. What seems less possible is that the public trust in the royal family will return to its once-high levels.<\/p>\n \u201cEvery single move the royal family makes is highly scrutinized by the public,\u201d Nierman says. \u201cWhile their estates are not going to be significantly threatened by a PR crisis, the issue is that it will shape the way society views them. They then need to spend enormous amounts of time and energy diffusing crises such as the ones caused by Harry and Meghan\u2014and now with Kate\u2019s Photoshop scandal.\u201d<\/p>\n Other experts, however, don\u2019t think this crisis will damage the royals\u2019 reputation forever.\u00a0<\/p>\n The Kate debacle \u201cwill cause a short-term interruption in trust, but if there are no new errors by the Royal Family, the trust will [be] rebuilt in a year,\u201d Eric Schiffer<\/a>, chairman of Reputation Management Consultants, tells Fortune<\/em>. In fact, Schiffer says he predicts Kensington Palace \u201cwill avoid new self-imposed errors and refocus on advancing issues and policies meaningful to the public.\u201d<\/p>\n Another unique relationship at play is the royal family\u2019s relationship with the press, which has historically been quite \u201csymbiotic,\u201d Jones says. But it\u2019s a delicate balance.<\/p>\n \u201cWithout the adoring, loving coverage, the royals have less of a fan base. Without fodder that keeps the news machines churning, no one pays attention to the multi-billion dollar media machine,\u201d Jones says. \u201cThe Royal Family often seems to perceive the press\u2019s coverage as unfair or invasive. However, they are symbiotic, and indeed do need one another. The monarchy has evolved to adapt and manage its relationship with the media.\u201d<\/p>\n But news organizations have now started to mistrust the information fed to them by the palace. Indeed, AFP, a news agency based in France, has labeled<\/a> Kensington Palace as \u201cabsolutely not\u201d a \u201ctrusted source\u201d after the Kate Middleton photoshop scandal.<\/p>\n \u201cAny perceived manipulation can quickly escalate into controversy,\u201d Jones says. Then add on the rapid spread of information which requires swift responses to controversies and misinformation. The pedestal to fall from is now even higher.\u201d<\/p>\n<\/div>\nWhere does the British monarchy get its money?<\/h2>\n
I missed it. What exactly is going on with Kate Middleton?<\/h2>\n
Mistrusting Middleton\u2014and the press and the palace<\/h2>\n