Broadcaster Stephen Nolan has transferred all shares in his production company to an entity solely controlled by a leading bookmaker, documents filed with Companies House reveal.
Shares in Third Street Studios Limited, which had nearly £4m in accrued funds at the end of March 2022, were transferred to a company headed by bookmaker Paul McLean, the managing director of McLean’s Bookmakers.
Tsseot Limited, a company incorporated in September 2022, is the trustee of the Third Street Studios Limited Employee Ownership Trust, established on November 11 last year.
Days later an agreement was signed transferring the shares in the company from Third Street Studios to Tsseot as the trustee and "person of significant control". Mr Nolan ceded his position as a person of significant control, the main shareholder, on November 16.
Tsseot’s sole director and person of significant control is Vincent Paul McLean, described in public documents as a turf accountant. His address in the documents is the same as the Lisburn Road headquarters of McLean’s Bookmakers, or BetMcLean.
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An employee ownership trust (EOT) enables a company to become owned by its employees. Third Street, which is based in Ascot House in Belfast's Shaftesbury Square, had an average of three employees during the 15 months to the end of March 2022, down from four in 2020.
Mr Nolan, in response to questions on the relationship with Mr McLean, said he was "delighted" staff will be advised by "one of the most successful entrepreneurs" in Northern Ireland.
'Massive audience'
“Third Street has been approached by an industry leader in London to discuss teaming up to develop programmes for the national and international market," he said.
"We first came to their attention because of the massive audience success in terms of iplayer activations from the prison series Third St made for the BBC , both locally (Nolan Inside Hydebank) and for BBC3 network (Boys Banged Up)
"There is now a chance for the company to grow , but it will be a hard journey and I’m 50 this year.
"So the talented employees behind the scenes of Third St (present and future) will now have a real stake in the company through employee ownership and be on the journey themselves of growing the company with the exciting opportunities that we are lucky to have in play."
Accounts for Third Street Studios reveal the company had cash in hand of £1.5m and was owed £2.4m at the end of March 2022. The company also had debts of £126,000.
Director of several companies
Mr Nolan is among the BBC’s top five biggest earners, according to publicly revealed information. The broadcaster earned between £415,000 and £419,999 in 2021/22. In the previous year, Mr Nolan earned between £405,000 and £409,999.
He presents shows on BBC Radio Ulster, BBC Radio 5 Live, Nolan Live for BBC Northern Ireland and is involved in other radio and television projects for the broadcaster, some produced by Third Street.
Mr Nolan is also a director of several other companies but only one reported substantial funds. Stephen Nolan Broadcasting had funds of just under £60,000 at the end of August 2022.
Mr McLean is the managing director of a bookmaker's company with more than 60 A. McLean shops around Northern Ireland. It was founded by his father, Alfie. Mr McLean did not respond to a request for comment on the arrangement that makes him trustee of the EOT.
EOT trustees are the directors of the corporate trustee company which holds the shares in the trading company/group. Their role is to ensure that the company "is being managed by the directors of the trading company in the best interests of the employees as a whole", corporate accountants, Howsons, state on its website.
Trustees often are exiting shareholders, current directors and employees of the trading company, or persons independent of the company, normally solicitors, accountants or professional independent trustees, Howsons explain.
There are tax benefits to establishing an EOT. There is no capital gains tax on the transfer of shares while employees are allowed to be paid bonuses free of income tax.
According to filed documents, Tssoet is now the relevant legal entity (RLE) of Third Street Studios, holding more than 75% of the shares and with the right to appoint or remove directors.,
Mr Nolan is currently on holiday. On her first show, stand-in Holly Hamilton told listeners on Tuesday she was taking the helm for "the next few weeks".
The broadcaster, in his statement, said he was "delighted that one of the most successful entrepreneurs in Northern Ireland will be advising the staff about all the business elements of running a company".
"The aim is to grow Third St so that it can create formats, IP and shows that will be successful locally, nationally and internationally - and hopefully that will mean more job creation as well,” Mr Nolan said.
"Now that employee ownership is in play - I want creators to know that they can have a real stake in the business if they work for Third St .
"So hopefully talented TV people who are also entrepreneurs will get in touch so that long after I retire , Third St continues to create compelling content - with the staff at the heart of the business." He is also looking for ideas for future shows.
'Commercially confidential'
The BBC was unable to immediately respond to a question on whether the broadcaster knew about Third Street and Mr Nolan's relationship with Mr McLean and to comment.
But a spokesperson said: “Stephen Nolan’s salary for his work on BBC Radio 5 Live, BBC Radio Ulster/Foyle and Nolan Live on BBC television is published in the BBC’s Annual Report and Accounts.
“Our contractual arrangements with independent production companies that make programmes for the BBC are commercially confidential. Rigorous editorial, financial and other controls apply to all of these commissions.”
Separately, the BBC is carrying out a content review of Mr Nolan's morning radio programme, The Nolan Show, The Irish Times is reporting.
The internal investigation was ordered as the SDLP continues its boycott of the programme since MLA Matthew O'Toole was cut off on air by the presenter. Sinn Fein has refused to take part in the show for a number of years.
