Sky buys Ball's loyalty for £10m

BROADCASTER BSkyB is risking another run-in with investors by agreeing to pay £10m to outgoing boss Tony Ball.

Ball, who has earned more than £28m since joining BSkyB in 1999, will get the money in return for agreeing not to work at a rival firm for at least two years.

But shareholders will be wondering why BSkyB did not sew up a suitable 'non-compete' clause when it first appointed Ball.

It is believed that he was already locked in for one year, so paying £10m for a further 12 months of protection may raise a few eyebrows.

Details of the bumper deal emerged at the weekend, following Friday's annual meeting when BSkyB chairman Rupert Murdoch anointed his son James as chief executive.

Investors did not want Ball to be rewarded for quitting of his own free will. Murdoch Snr said on Friday that Ball was forgoing his rights to more than £1.3m in salary and bonus, but would receive a non-compete payment. Shareholders had no idea that it would be so large.

Ball had been seen as a contender for top jobs at Channel 4 and ITV, but has previously told colleagues that he would like to move to Spain and invest his millions in property.

BSkyB refused to comment.