It's a no-win situation for the check-in staff. Aircraft full, late passengers, offer them a hotel and cash sweetener to travel the next day, what more can they do?
These card holders play the system when it suites them. The 5pm shuttle out of Manchester never used to have a backup aircraft and was frequently full. Those arriving late were offered £50 cash to travel on the next one. You could see the "professionals" holding short of the check-in queue and only joining it a minute before the flight closed. They either got on, or if the aircraft was full an apology from the check-in staff (and the £50). In this case it was classed as a "result".
Also the number of times these gold card holders who, while on business, travel "up the front" then, on a basic economy ticket (while on holiday with the family, paid for by air-miles) flash the card and expect gold card treatment (and an upgrade).
In the case in question perhaps the BGI staff (handling agents) hadn't pandered to him enough, after all he was very important.
I'm with Thunderbird7, there is more to this than meets the eye.
PS.
I turned up at the local Landrover dealership to pick-up my new Freelander SE a while back, flashed my retired staff ID, suggested I was a very important customer and asked if there was any chance of an upgrade to a HSE model.