Home Shopping Network
During this tumultuous and intense period of significant litigation when most other business men would have become extremely wary of risky speculations, Roy forged ahead. In 1982, he and Bud Paxson formed Home Shopping Network to sell merchandise on television using a local cable network. This developed as an offshoot of an AM radio program. This became an ideal platform for Roy to apply his years of legal and business expertise. The effort created a completely new industry - retail merchandising through television. When the local venture expanded dramatically, they acquired access on a satellite channel in 1985, enabling the company to sell merchandise throughout the United States from the Clearwater facility. On May 13, 1986, Home Shopping Network went public on the American Stock Exchange. Within five years, the company would achieve over one billion dollars in annual net sales, a testament to Roy's vision and leadership. The success of this venture was so impressive that the Harvard M.B.A. Program assigned its students to analyze and critique the company's success. Of all his ventures, his oil and gas drilling operations in Texas and the development of Home Shopping Network had the most significant impact on his business career.
With his financial success, Roy was able to benefit others through the establishment of the Roy M. Speer Foundation in 1986. Through this foundation, Roy has been able to provide support to charitable, religious, scientific, literary, and educational organizations. Some of these are the Dr. Parker Mahan Facial Pain Center at the University of Florida College of Dentistry, Pasco County YMCA Family Center, The Florida Orchestra, Ronald Reagan Presidential Library, Presidential Prayer Team, Hurricane Relief Fund, New Port Richey's Super Playground, Billy Graham Crusade, numerous local Christian churches, and many other benevolent projects.
In 1993, Speer was charged in a class-action suit that alleged he improperly accepted compensation from vendors; that the Company paid Nando DiFilippo, former executive vice-president, general counsel and secretary of the Company, to prevent him from disclosing such vendor bribes; and that the Company had failed to properly disclose certain related party transactions in its filings with the SEC.
Also, in 1993 another suit was brought against Speer alleging a breach of fiduciary duties owed to the Company and its stockholders by failure to exercise due care and diligence in the management and administration of the affairs of the Company. The suit challenged the validity of a license agreement with Richard Speer (Roy Speer's son) pursuant to which the Company was given the exclusive rights to certain software and alleges that the Company wrongfully made payments to Richard Speer pursuant to a computer services agreement which was allegedly terminated. The suit alleged that the Company wrongfully made payments to Richard Speer of $3,502,000, $3,286,000 and $3,084,000 during the Company's 1992, 1991 and 1990 fiscal years, respectively, pursuant to the agreement. Merchandise that is unsuitable for sale via the Company's programs or outlet stores was sold by Richard Speer, who received a commission of 15% on the amount realized upon disposition. Richard Speer received $1,469,000, $1,615,000 and $1,427,000 and through this arrangement during the Company's 1992, 1991 and 1990 fiscal years, respectively. The suit also alleged that this 15% commission was commercially unreasonable. The suit alleged that the above-described arrangements would not have been entered into by the Company with an unrelated third party and that Roy and Richard Speer owned undisclosed interests in unspecified firms which sell merchandise to the Company.
Speer settled all claims with the Plaintiffs before they ever went to trial.
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