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Richard Desmond: I made £5,000 profit from Labour donation

Although Richard Desmond recently pledged his allegiance to Ukip’s Nigel Farage, the media mogul previously backed Tony Blair, with the owner of the Express papers donating £100,000 to Labour in 2001.

Now, in his new biography Richard Desmond: The Real Deal, Desmond claims that he made a £5,000 profit from the donation. Desmond writes that the donation came about after he attended a dinner with Lord Alli:

‘Waheed said Tony really liked me. Would I make a contribution to the party? What they didn’t realise was that I had put everything I’d ever had – some £37 million – into the Express, along with £97 million that I had borrowed, my house and half my pension pot.’

As a way around his cash flow issue, Desmond offered £100,000 worth of advertising. However, Alastair Campbell — who attended Desmond’s book launch last night — said the donation would need to be in cash in order for Labour to be able to accept it. As a result, a compromise was reached by which he gave them the money, and then they paid for the advertising:

’So I gave them the cash and invoiced them for the advertising separately. Actually the advertising came to £105,000 so I made a profit of £5,000 on the deal. I remember Gordon Brown saying some time later, ‘Was it true you made a profit on that advertising?’ I replied, ‘Yes, I did actually, I got more back.’ He said, ‘Tut, tut, tut.’

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