ITV’s legal bill soars to £24m amid Phillip Schofield scandal

ITV’s legal bill soared to £24m last year as bosses grappled with the fallout from the Phillip Schofield scandal.

The broadcasting giant racked up millions of pounds in legal costs in 2023, some of which related to a KC review into Mr Schofield’s affair with a young colleague.

The This Morning presenter stepped down from ITV in May last year after admitting to an “unwise, but not illegal” relationship with a male studio runner more than three decades his junior.

Bosses commissioned a review by barrister Jane Mulcahy KC to examine allegations of a “toxic culture” on the channel’s daytime shows and concerns that the affair was covered up.

After interviewing almost 50 current and former ITV employees, including Mr Schofield’s co-star Holly Willoughby, Ms Mulcahy cleared the broadcaster of wrongdoing.

ITV has denied it paid a settlement to Mr Schofield or his younger colleague, though the latter was given a redundancy package after leaving the company in 2021.

Other legal costs last year included an investigation into The Voice of Holland. This came after allegations of sexual misconduct against band leader Jeroen Rietbergen and other figures on the original Dutch version of the talent show.

In total, ITV recorded £13m in legal settlements last year, which are understood to relate primarily to contract disputes at some of the group’s production companies outside the UK.

However, the overall legal bill was £24m for 2023, which was more than triple the £7m recorded the previous year.

The sharp increase in legal costs comes as ITV tries to shore up its balance sheet amid a sharp downturn in advertising.

The broadcaster saw its ad revenues tumble 8pc last year as brands cut back spending, with the decline most acute in its traditional TV business.

Earlier this month, ITV chief executive Dame Carolyn McCall said the company would accelerate its cost-cutting plans and launched a new restructuring programme to save a further £50m each year.

The company laid off employees in its in-house advertising agency last month and bosses have refused to rule out job cuts linked to the new cost-cutting efforts.

ITV recorded restructuring costs of £25m linked to the overhaul.

Dame Carolyn took home a pay packet of £2.9m last year, down by almost a fifth from £3.5m in 2022.

This was after a reduction in bonuses for directors, which the company said “primarily reflected the economic backdrop impacting financial performance”.