[Citing: Behind Michael Jackson's mad money
Was the King of Pop smart, lucky, or a little off about how he conducted his finances? Turns out, he managed to be all at the same time.
By Richard Siklos, editor at large
Last Updated: October 23, 2009: 2:23 PM ET
NEW YORK (Fortune) -- We all know that Michael Jackson was one of the greatest entertainers who ever lived. But when it came to how he conducted his business and financial affairs, was he smart, lucky, or mad? As depicted in the Fight Over Michael's Millions, he managed to be all at the same time.
Repeatedly, people who worked with Jackson told me that although he had a shrewd sense of business, he had no appreciation of -- or concern about -- the value of money. He came into an unfathomable amount of it during the 1980s at the apex of his success, and he hit a double-home run when he parlayed $47.5 million into his half-interest in what is today Sony/ATV Publishing, which is now worth more than 10 times that.
It's interesting that despite leaving his famed Neverland Ranch nearly five years ago and vowing never to return, Jackson never bought another home. My impression is that is because he only believed in doing things on an ever grander scale and he was biding his time till he could come back bigger than ever.
This explains the apparent lunacy of Jackson, despite the crippling loans he carried, this year planning to buy a house in Las Vegas for close to $50 million and even having a $15 million advance for the house built into his contract with AEG, the promoter of his comeback concerts.
According to Jackson's recent manager Tohme Tohme, Jackson's largesse extended to people he cared for -- he says Jackson agreed to buy a $600,000 motor home for his mother Katherine and asked that a $400,000 bracelet that he liked be bought and sent to one of his celebrity pals -- both in the past couple of years when he was on the brink of financial ruin.
Yet, Jackson understood that he needed to make money to get out of hock. One of the many ironies in Jackson's tragedy is that he was poised to sell a warehouse full of his vast possessions at an auction in Los Angeles this past April. He called that off at the last minute and now, given the interest in Jackson since his death, his stuff is undoubtedly worth far more.
Plus, some pieces are now about to start earning his estate money as part of a touring exhibition of his memorabilia slated to begin in London next week. (Go here if you want to see the catalogue from the aborted auction.) Whether the Jackson provenance is a plus or minus for the real estate value of Neverland when it is eventually sold remains to be seen.
When it came to negotiating deals (which he often reneged on), Jackson could be sly. He understood that he had assets people coveted -- including proximity to himself -- and that he could find ways to moonwalk around financial disaster.
Sony/ATV was a calling card that separated him from being a mere musical megastar. By following Paul McCartney's advice and buying up music catalogues, Jackson bet wisely on a segment of the music business that has actually grown over the past few years, as music gets licensed for new uses, like ring tones and advertising and TV shows like "American Idol" and video games like Rock Band.
And whether he intended to or not, Jackson picked a business that did just fine -- if not better -- without him involved day to day. During the years Jackson was in the figurative wilderness, he was also an absentee partner at Sony/ATV. Until Sony secured more control over business decisions when it helped Jackson hold onto his stake in the company in 2006, it was apparently impossible to track down Jackson and get him to agree to things.
With a freer hand, Sony was more easily able to make more than $500 million of acquisitions and bring in Martin Bandier, a music industry veteran, to build and run the Sony/ATV in early 2007. Last year, the company made around $65 million in operating profit on revenue of close to $500 million, insiders claim, and the business won an internal award at Sony (SNE) for its rich margins.
Jackson cherished his association with the business and appreciated how Sony had helped him in his pinch, but he was also mistrustful of the Japanese conglomerate after falling out with his record label there a few years ago. It probably didn't help that the partners didn't hold a single board meeting between 2002 and 2007, and Jackson never bothered to meet Bandier in person.
When he agreed to the comeback shows in London, Jackson wanted it known that he was going back to work for the benefit of his three children -- he and his youngest son, Prince Michael II (also known as "Blanket") even showed up in matching black suits when he went to meet Phillip Anschutz, the tycoon whose company, AEG, was to stage the concerts.
Jackson explained that, more than the money, he wanted to show his kids what he had done in his heyday. But at the same time, his advisors say, he mused about a future when he would somehow buy back the other half of Sony/ATV and live off publishing riches in his big mansion in Las Vegas while making movies and doing other things.
[Citing: The fight over Michael's millions
The King of Pop's posthumous success has produced a gusher of money. Now, where his estate is concerned, the Michael Jackson show is just getting started.
By Richard Siklos, editor at large
Last Updated: October 23, 2009: 2:25 PM ET
(Fortune Magazine) -- On a recent Friday afternoon, workers toiled away at Neverland Ranch as part of a curious restoration effort that accelerated after Michael Jackson's sudden death on June 25. The main grounds of the 2,700-acre property had been cleared of encroaching chaparral and were now close to the condition they had been in when Jackson last set foot here some five years ago.
The flower beds next to the Disneyland-replica train station were pristine, though the trains were in storage and the midway amusement rides and zoo animals that once populated the property were gone. The Tudor-style mansion, guesthouse, and separate movie theater/dance studio were in move-in condition. The theater even had fresh candy at its concession stand, though the building's only inhabitant was a wayward bat stranded in the restroom.
It was a bit sad and eerie, albeit, from an MTV Cribs kind of viewpoint, quite excellent.
Through all the hoopla following Jackson's death, no one has said publicly what will become of Neverland, which Los Angeles private equity firm Colony Capital took control of after the property nearly went into foreclosure last year.
The Jackson family's desire to have Michael's body interred here proved too complicated, as has the notion of turning it into a Graceland-like destination for fans. There is talk of moving some of the property's structures, which include a giraffe barn, to Las Vegas with an eye to establishing a Neverland attraction there and selling the ranch.
Under terms of an agreement struck with Jackson after Colony purchased the note on the property for $23.5 million, when Neverland is eventually sold, Colony will recoup its investment in the note plus accrued interest, its management and upkeep expenses, and around 12% of everything above that as a success fee. The rest will go to Jackson's estate.
While he declined to confirm the details of his arrangement with Jackson, Tom Barrack, the CEO of Colony, says the Neverland property ought to be worth $60 million to $70 million.
If so, that would be just one source of a sudden gusher of money into Jackson's estate, the bulk of which he left to his mother and three young children.
Two years ago Jackson was headed for insolvency, a consequence of having barely worked in nearly a decade, a period during which he fought child molestation charges and became better known for his eccentricities than for his musical skills. The deal with Colony, and Jackson's decision to stage a series of comeback concerts, were his way out from under debts that had grown from $90 million a decade ago to around $435 million today.
Though Jackson made some savvy investments early in his career, his loans piled up through an astonishing combination of careless financial decisions -- made with an oft-changing and colorful parade of business advisers -- a mountain of legal bills and distractions, and uncontrollable spending.
"When it came to money, he was almost a contradiction," says Randy Phillips, who runs the company that planned to stage Jackson's comeback. "He didn't care about money but liked to spend money and knew that he had to make money."
His demise might have been a tragic postscript to a faded career. Instead, the singer is having a posthumous comeback that promises to dwarf that of Elvis Presley (whose daughter Jackson was once married to). This year Jackson's estate stands to bring in close to $200 million from music sales, merchandising, and book deals; an exhibition of memorabilia; and especially a hastily made documentary based on his comeback concert rehearsals that hits theaters Oct. 28.
The film, "This Is It," is tracking to be a box office success -- with more tickets presold than the next "Twilight" installment -- and riches from DVD sales could follow. Jackson has sold some 5 million albums and 10 million downloads since his death in the U.S. alone, according to Soundscan, and plans are in the works for at least two albums of unreleased songs. (To put that in perspective, he had sold just under 300,000 records in the half-year before his death.)
In all, Jackson's estate would likely be worth $100 million or more if it were liquidated today, but properly managed, it ought to be worth multiples more in time.
The story of Michael's millions -- reconstructed here from private documents, court files, and dozens of interviews with people who worked with the singer -- is as off-the-wall as he was. Barrack recalls being charmed by the self-proclaimed King of Pop when he first met him last year but deeply skeptical about doing business with him.
"Everybody said two things about him," Barrack says. "Firstly, if Michael Jackson came back it would be the greatest thing in music history. And secondly, it would never happen." Improbably, both have come true.
A brief recounting of tragic and familiar facts: Jackson died suddenly in Los Angeles at age 50 amid final rehearsals for what was expected to be a 50-date gig at London's O2 arena. The cause was a combination of prescription drugs, including a surgical anesthetic, propofol, that Jackson was reportedly being given to treat insomnia. The death is being treated as a homicide, and an investigation continues.
As demand for the London shows demonstrated -- all 800,000 tickets sold out within five hours -- Jackson, despite his tabloid travails, was still a megastar. From child stardom with his brothers in the group the Jackson 5, the Gary, Ind., native skyrocketed as a solo act in the 1980s. His album "Thriller" has sold more than 70 million copies, and he is the biggest-selling recording artist of all time.
Between "Thriller," its very successful follow-up, "Bad," and a 120-date stadium tour and sponsorship deals, Jackson earned as much as $350 million, estimates his manager during that period, Frank DiLeo. Paul McCartney, with whom Jackson recorded the single "Say Say Say," turned him on to the idea of buying music publishing rights, reportedly saying, "This is the way to make big money."
Jackson began buying some publishing catalogues with his earnings, including those of Sly and the Family Stone. But McCartney ended up miffed when, in 1985, Jackson -- with the help of his then-lawyer, John Branca -- paid $47.5 million for ATV Music Publishing, a catalogue that included more than 250 Beatles songs. (It was around this time that Jackson also bought Neverland, for $17 million in cash, after visiting McCartney, who happened to be renting it during a video shoot for "Say Say Say.")
Separately, Jackson set up a company called MiJac to hold the publishing rights for what would eventually be eight studio albums of his own music, plus the other catalogues he owned pre-ATV.
In the 1990s, Jackson's ambitions grew ever larger, but his meteor started to sputter. He faced accusations of child molestation and settled a civil suit for $15 million. He burned through piles of money on movies and other ventures that didn't pan out. In 1995 he merged ATV with a publishing business owned by his recording label, Sony (SNE), in a deal that valued ATV at far more than what Jackson had paid -- $115 million plus half the combined company.
Jackson wanted to transcend being a music performer by making films and theme park attractions and videogames. His short video, "Captain EO," directed by Francis Ford Coppola, was shown in 3-D at Disney theme parks. But the only feature movie project he ever completed, called "Moonwalker," failed to find a U.S. distributor when it was released.
By the late 1990s, according to court filings, Jackson had borrowed $90 million from NationsBank, collateralized by his half-interest in what was now called Sony/ ATV. Myung-Ho Lee, a Korean businessman who for a time was Jackson's business manager, claimed in a lawsuit that he lined up "desperately needed financing" from Bank of America (BAC, Fortune 500) (which had merged with NationsBank) to refinance that loan and borrow more -- increasing Jackson's debts to $220 million.
Some of that new money was pumped into dotcom ventures, including Tickets.com, a gaming company, and a fuel-cell business. In court papers Lee also claimed he was not paid for his services and accused Jackson of "bizarre and extravagant" behavior. (Jackson claimed in response that it was Lee who had defrauded him.) "Michael Jackson was -- and is -- a ticking financial time bomb waiting to explode at any moment," Lee said in his complaint.
The case was settled not long after Jackson's last studio album, "Invincible," was released, in 2001. Compared with his past chart busters, "Invincible" had lackluster sales, and Jackson was unhappy.
Bob Daly, who ran Warner Music (WMG) for years and later the Warner Bros. studio, knew Jackson through his wife, the songwriter Carol Bayer Sager, to whom Jackson had dedicated the album. One day Jackson asked Daly, as a favor, to investigate whether Sony had cheated him in the making of the album. Daly reviewed the album's financing and found nothing untoward.
"When I told him that, he sort of disappeared on me," recalls Daly. "Some people don't like hearing what they don't want to hear." Soon after, Jackson had a blowup with Sony during which he was photographed carrying a placard portraying Sony Music's then chief as a devil-like figure.
Before long Jackson and Sony Music parted ways -- a situation that layered tension and mistrust onto his continuing partnership in Sony/ATV, which was operated as a separate entity from the music business.
At this point Jackson had a staff (or "organization," as he liked to say) numbering some 50 people on his payroll. Upkeep at Neverland was costing upwards of $4 million a year, and Jackson was also underwriting the staff and upkeep costs of the Encino, Calif., compound where his mother and other family members lived.
Jackson sought help from a colorful roster of managers and advisers that included a guy who Jackson didn't realize was a gay porn producer, a Florida lawyer who once represented mobster Meyer Lansky, a prominent member of the Nation of Islam, and Michael's own brother Randy.
Finances took a back seat as Jackson spent two years fighting new child molestation charges filed against him in 2003. During his successful defense, according to court papers, Jackson received $2 million from Sheikh Abdulla, the 33-year-old son of the ruler of Bahrain, to help foot his legal bills.
The sheikh, who had ambitions to be in the music business, had taken a shine to Jackson after being introduced by Michael's brother Jermaine. He says in court papers that he took care of the utility bills at Neverland for a time and helped Michael arrange his first mortgage on the property. The sheikh would describe his new friend as "a person who is very switched on, a fantastic businessman and fantastic intellectual."
Several weeks before he was acquitted, Jackson attended the funeral of lawyer Johnny Cochrane. There Jackson confessed his financial straits to Ron Burkle, the Yucaipa Cos. financier, whom Jackson had befriended.
Jackson asked Burkle if he would have an accountant look at Jackson's troubled finances. Burkle agreed, eventually telling the singer that his spending was untenable and he either needed to cut back dramatically or go back to work.
But Jackson told him, as he did others, that under no circumstances did he want to go back to performing. At the very least, Burkle insisted that Jackson begin signing all his own checks so that he could see how much he was paying for things.
Most of Neverland's staff was laid off, and Jackson -- who said he felt violated after police raided his home -- vowed never to return there. Soon after his acquittal, Jackson was living in Bahrain with his children as a guest of the sheikh.
Amid all the negative publicity swirling around Jackson, Bank of America quietly sold the loans it held on Jackson's interest in Sony/ATV, MiJac, and Neverland at a steep discount to Fortress Investments (FIG), a big hedge fund that specialized in distressed assets.
Because of covenant breaches and penalties, the loans now carried stiff terms, with an interest rate in the mid-teens, say two people who were involved in Jackson's finances.
Jackson's income consisted of small dividends from Sony/ATV, $10 million or so from MiJac, plus roughly $10 million from music royalties and other sources -- but that was not enough to stay ahead of his mounting interest payments and his legal and living expenses.
"He always was asset rich and cash-flow poor," one of these people says. "The best way to think about it is a middle-income family that spends too much on their credit card and doesn't care about the fees."
In late 2005, Jackson received a fax from Robert Wiesenthal, the chief financial officer of Sony's U.S. business. Wiesenthal understood that Jackson was days from defaulting on his Fortress publishing loan and offered to meet to discuss ways to help.
Besides aiding a partner, Sony was concerned that Jackson's half of Sony/ATV could end up in bankruptcy court -- or in the hands of an outsider like Burkle or Fortress. (Burkle declined to be interviewed, and Fortress did not respond to an interview request.)
Howard Stringer, Sony Corp.'s chairman, dispatched Wiesenthal to Dubai. In a gilded hotel suite, Wiesenthal met with Jackson and several of the sheikh's advisers and explained that Sony had lined up bankers from Citi who were willing to refinance Jackson's ATV debt on much better terms. And Sony agreed to a dividend policy from the publishing company that would help cover interest payments on the ATV loan.
In exchange, Sony received a freer hand to make investment decisions without Jackson's approval; a right of refusal on his stake; and an option to buy half of Jackson's half for around $250 million. To everyone else's surprise, Fortress exercised a right it held to match any financing terms and held onto its Jackson loans, though only for a short term.
Problems solved? Of course not. In Bahrain, Abdulla had given Jackson use of a Rolls-Royce and a Maybach and bought him jewelry and watches and a gold statue. But after a few months their relationship became another tale of mutual hurt.
Jackson left Bahrain, and Abdulla sued him for reneging on an agreement to start a label and record songs together -- including a Hurricane Katrina relief song they'd spent weeks preparing. Jackson claimed that he either did not know what he was signing or was misled. The case went to trial in London but was settled just before Jackson was to testify.
Jackson moved mostly around Europe with his children, at one point in 2006 living in Ireland and contemplating settling there. According to Raymone Bain, Jackson's spokeswoman and general manager at the time, although Jackson was focusing on raising his children, he was also determined to revive his career.
Jackson told Bain, a crisis specialist who had been spokeswoman for incarcerated D.C. mayor Marion Barry, that two constant subjects of media inquiry were off-limits: his children and his finances. "My finances are my business," he said. "Let them think I'm broke."
Jackson invited Bob Sillerman, the Wall Street entrepreneur who had acquired Elvis Presley Enterprises, to visit him in Ireland to talk about ways to turn Neverland into a fan destination. And although he had been hands-off at Sony/ATV, he was excited about acquisitions the company was making, even calling the legendary songwriter Mike Stoller before the company acquired the catalogue owned by him and Jerry Lieber, which, to Jackson's delight, included the Elvis hits "Hound Dog" and "Jailhouse Rock." "He wanted to really assure Jerry and me that we would be in the best of hands," recalls Stoller.
The Fortress loans were coming due yet again at the end of December 2007. Barclays refinanced the $300 million loan against Sony/ATV from Fortress. HSBC (HBC) lent $30 million against MiJac. Plainfield Asset Management, a hedge fund, loaned another $40 million against MiJac at a 16% interest rate on terms that allowed Jackson to defer payments while the amount due grew.
The financing was supposed to enable Jackson to settle 13 outstanding lawsuits and still have roughly $11 million on hand for creative ventures. The other loans against Sony/ATV and MiJac were both structured so that Jackson was unable to access any of the money -- dividends and profits went directly toward debt payments. And additional money was raised to have "interest reserves" that would make interest payments when Jackson couldn't. Frank DiLeo, Jackson's manager during his heyday, still can't believe the star let it all pile up. "I want to wake him up and slap him," he says.
Jackson was still, according to two people who advised him, running a deficit of $10 million to $15 million a year beyond a similar amount that he would bring in from royalties and new ventures like a special 25th anniversary "Thriller" album released last year.
Not counting financing charges, last year Jackson's personal expenses were around $8 million, says an adviser who reviewed his books -- counting everything from rent and Neverland upkeep to security, child care, and tutoring Jackson was receiving for moviemaking.
Fortress had held onto the mortgage on Neverland, and in early 2008 -- to the surprise of Bain and some of Jackson's other former advisers -- reports emerged that Neverland was going to be sold in a foreclosure auction, only to be "saved" for Jackson by Colony Capital.
By then Bain was out of the picture after Jackson had changed his phone numbers, which he did frequently. This time he didn't give her the new ones. Several months before he died, Bain filed a $44 million lawsuit against Jackson for, you guessed it, unpaid services.
"This is the saddest story in history," says Tohme Tohme, the man who succeeded Bain. "I had no purpose except to help him, to bring Michael Jackson back and make him the King of Pop. One consolation for me: I did it. He died the King."
In the days following Jackson's death, Tohme was portrayed in media reports as a mysterious if not sinister figure -- a portrait he feels besmirched him. A longtime Los Angeleno of Lebanese heritage and habitué of the Bel Air Hotel, Tohme comes from outside the entertainment business but declines to say what businesses he is in.
"If you are writing about Linda Lovelace, you don't need to know about John Holmes," he laughs, making an unexpected reference to 1970s porn stars.
Say what you will, Tohme was able to get Jackson working again. Tohme says that he has known the Jackson family for years, and that Jermaine asked Tohme to help his brother out in early 2008 when Neverland faced foreclosure.
Tohme had done some work with Colony Capital, which has done $39 billion worth of transactions since 1991 and owns 9% of French retailer Carrefour. Tohme persuaded Colony's Barrack to meet with Michael in Las Vegas at the rented stucco compound where the King of Pop and his kids were living. Colony owns the Vegas Hilton, and Barrack had played a role in resuscitating the career of Barry Manilow via a five-year run of shows there.
Barrack also has a ranch near Neverland, and he expressed interest in both Neverland and some kind of permanent Vegas show based on Jackson's music. He in turn spoke to Phil Anschutz, the owner of AEG (it stands for Anschutz Entertainment Group), which led to a meeting between Anschutz and Jackson at the MGM Grand late last year. Jackson was "very laser focused," says AEG Live's Phillips, who also attended. "He wanted to meet the guy who owned the company."
AEG and Tohme subsequently hashed out Jackson's deal for what eventually became 50 shows. Among its terms: Jackson would get 90% of all profits, and AEG would advance some $15 million toward the purchase of a palatial house that had been built by Prince Jefri of Brunei in Las Vegas, which had been listed for more than $100 million and which Jackson envisioned as his new Neverland.
But first AEG had to pay $5 million to Sheikh Abdulla to finally settle his dispute with Jackson (a figure that hasn't previously been disclosed). Tohme worked on other deals on Jackson's behalf, including one for a "Thriller"-based show on Broadway, TV specials, a film, and even a casino.
But several weeks before his death, there was fresh unrest in Jackson's world. Tohme was on the outs after Jackson was upset by the way he managed an auction of truckloads of his eclectic personal possessions this past April.
Jackson was apparently horrified to see the catalogue on the Internet, and the auction ended up being stopped after Jackson sued. (Tohme denies ever receiving a letter from Jackson dismissing him and says he hasn't been paid for the work he did for the singer.)
Around that time, Jackson brought back his old manager DiLeo, who in turn helped bring back John Branca, who had been Jackson's lawyer for the better part of three decades and helped him buy ATV, but with whom the singer had a sometimes strained relationship. Branca, who declined to be interviewed, has said that he last stopped working for Jackson in 2006 because he didn't like the people Jackson was surrounding himself with.
Some in the Jackson orbit, including his father, Joe (with whom Michael had long-standing and very public differences), have contended that Michael was manipulated by people without his son's best interests in mind and hint at nefarious forces behind his demise.
Both the rented $100,000-a-month Bel Air mansion where Jackson fell ill and a doctor who lived with him -- who was to be paid $150,000 a month -- were being funded by AEG. Phillips, the president of AEG Live, says he objected to having the doctor, but Michael Jackson insisted, saying that his body was their venture's most important asset.
"It's easy to make us look like the corporate villains who took advantage of Michael Jackson," Phillips told me one day in his office near Los Angeles' Staples Center, which AEG owns and where Jackson held those final rehearsals. "It's quite the opposite -- we were the people who empowered Michael Jackson and gave him his dream back."
AEG, despite having invested close to $30 million in Jackson's unrealized dream, will make money on its involvement with the estate, thanks largely to the rehearsal footage that was shot and the swiftness with which AEG and Jackson's executors formulated a plan to salvage a calamitous situation.
Sony paid what one company insider called an unprecedented $60 million to Jackson and AEG for the rights to release "This Is It" -- a price justified in part by the fact that the film deal precluded, for now, a televised tribute concert recreating Jackson's fateful stage show, which AEG has explored.
The movie is slated for a limited, two-week run. But where his estate is concerned, the Michael Jackson show is only just underway.
New creditor claims are being filed on a weekly basis, and yet to be resolved is whether Jackson's family can get along with the executors who were named in Jackson's 2002 will: Branca and music industry veteran John McClain.
Katherine Jackson's attorneys have accused the executors of conflicts of interest (their precise objections are sealed from public view) while criticizing aspects of the deals they struck with Sony and AEG.
The probate judge, Mitchell Beckloff, recently took the unusual step of granting Katherine the ability to challenge the executors without jeopardizing her inheritance, and both sides' lawyers have been trying to work out a compromise that would avoid a trial.
Estate lawyers know that high-profile celebrity cases can drag on for years, the most extreme example being Marilyn Monroe's probate, which lasted more than three decades.
Jackson's cultural resurgence will certainly continue to brighten the estate's financial situation, but more challenges are on the horizon. Next year, insiders say, the estate's groaning debts will need to be refinanced yet again.
Down the road, MiJac may be merged into Sony/ATV, which has thrived over the past couple of years. Or the estate may eventually decide that it wants to sell Jackson's musical jewels to the highest bidder to finally settle all the singer's debts and lawsuits. One day, in Las Vegas or elsewhere, fans may visit a new Neverland.
Creatively, Jackson's legacy in the pantheon of musical superstars is already secure. But when it comes to the big financial questions, it's a good bet that Jackson's executors will not be asking themselves, "What would Michael do?"
Reporter associates Marilyn Adamo and Kim Thai To top of page
First Published: October 23, 2009: 4:26 AM ET
Jackson Inc.
The King of Pop, by the numbers
700 million Total albums sold to date
16 million Albums/songs sold since his death
200 million Estimated box office for "This Is It"
1 billion People worldwide estimated to have watched Jackson's memorial
435,000,000 Debts
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Maybe this is a good thing? I'm not really too sure. How do we know that he wasn't the one that pushed for this deal to happen. To all of us the estate could just mean the estate where as it's really MJ himself, but to the public it has to say estate, and maybe even to sony it's just the estate. He could just keep releasing music for years and stay in hiding for years. You never know
<!-- s8-) -->8-)<!-- s8-) --> I think I like that
I love this idea. MJ is the estate himself. <!-- s8-) -->8-)<!-- s8-) --> I also wondered why on June 17th or June 18th, 2009, that he wrote a letter shifting the control of his money from the Jackson Family Trust to the Estate. Maybe this is the possible answer to this question. I hope that I have stated this correctly. God bless you all! <!-- s:D -->:D<!-- s:D -->
He could even write new material and have it released through the Estate whilst being totally hidden and anonymous. Nobody would know that it is not old material
Maybe this is a good thing? I'm not really too sure. How do we know that he wasn't the one that pushed for this deal to happen. To all of us the estate could just mean the estate where as it's really MJ himself, but to the public it has to say estate, and maybe even to sony it's just the estate. He could just keep releasing music for years and stay in hiding for years. You never know
<!-- s8-) -->8-)<!-- s8-) --> I think I like that
I love this idea. MJ is the estate himself. <!-- s8-) -->8-)<!-- s8-) --> I also wondered why on June 17th or June 18th, 2009, that he wrote a letter shifting the control of his money from the Jackson Family Trust to the Estate. Maybe this is the possible answer to this question. I hope that I have stated this correctly. God bless you all! <!-- s:D -->:D<!-- s:D -->
He could even write new material and have it released through the Estate whilst being totally hidden and anonymous. Nobody would know that it is not old material
Maybe this is a good thing? I'm not really too sure. How do we know that he wasn't the one that pushed for this deal to happen. To all of us the estate could just mean the estate where as it's really MJ himself, but to the public it has to say estate, and maybe even to sony it's just the estate. He could just keep releasing music for years and stay in hiding for years. You never know
<!-- s8-) -->8-)<!-- s8-) --> I think I like that
I love this idea. MJ is the estate himself. <!-- s8-) -->8-)<!-- s8-) --> I also wondered why on June 17th or June 18th, 2009, that he wrote a letter shifting the control of his money from the Jackson Family Trust to the Estate. Maybe this is the possible answer to this question. I hope that I have stated this correctly. God bless you all! <!-- s:D -->:D<!-- s:D -->
He could even write new material and have it released through the Estate whilst being totally hidden and anonymous. Nobody would know that it is not old material
yeah I realize that <!-- s:D -->:D<!-- s:D -->
<!-- s:? -->:?<!-- s:? --> dang but how will the lawyers explain me & michael's future babies & marriage? okay I kept his used profilactics <!-- s --><!-- s --> <!-- s --><!-- s --> and we were secretly married June 23 <!-- s --><!-- s --> <!-- s --><!-- s -->
<!-- s8-) -->8-)<!-- s8-) -->
JUST KIDDING!! <!-- s --><!-- s --> <!-- s --><!-- s --> <!-- s;) -->;)<!-- s;) -->
Is it just me, or does it strike you odd that Sony would put out that much money for a record deal on a dead person? <!-- s --><!-- s --> He's got to be alive. Otherwise, it makes no sense to me. Even if there are songs that have never been released before, usually, doesn't a singer go on tour to promote the new material? I know, MJ would sell no matter what, but still.
And how do we know there are old songs that have never been released? We hear it from the media. What if, there are no old songs that haven't been released, but in reality, *NEW* songs that he is coming up with right now, after his publicized death. Just a thought ...
And wasn't the computer that supposedly stored these old songs confiscated? Wasn't it thought that LaToya got it at first, but then she denied it.
Well, I believe he's alive, as I know a lot of you all do, otherwise, why are we on this board, no? <!-- s:) -->:)<!-- s:) -->
I THINK MJ IS BEHIND THE CONTRACT SIGNING .. WHO KNOWS HE MIGHT HAD PATCHED UP WITH THEM N THAT CAN BE POSSIBLE....NOW AT PRESENT HE MAY BE AT GOOD TERMS WITH THEM.... MAY BE THAT COULD BE THE REASON OF SIGNING 7 YEARS CONTRACT VIT THEM....... JUST SEEING A POSSIBILITY NO OFFENSE. GOOD LUCK MJ. I THINK NEED RELIEF FROM UR MOUNTED DEBTS. THERE IS ONE MORE THING TO ADD UP...........IF MJ IS ALIVE THE CONTRACT MUST HAVE BEEN SIGNED BY MJ OR ELSE IF HE IS REALLY DEAD THEN SOMETHING TERRIBLE N SINISTER IS HAPPENING . IF MJ IS REALLY DEAD THEN , HE WAS BRUTALLY MURDERED FOR HIS MUSIC STUFF TO ACQUIRE HIS ESTATE BY CREATING FAKE WILL.... OR IS HE DOING ALL THIS TO EXPOSE SOMEONE WHO TRIED TO BRING HIM DOWN........
I THINK MJ IS BEHIND THE CONTRACT SIGNING .. WHO KNOWS HE MIGHT HAD PATCHED UP WITH THEM N THAT CAN BE POSSIBLE....NOW AT PRESENT HE MAY BE AT GOOD TERMS WITH THEM.... MAY BE THAT COULD BE THE REASON OF SIGNING 7 YEARS CONTRACT VIT THEM....... JUST SEEING A POSSIBILITY NO OFFENSE. GOOD LUCK MJ. I THINK NEED RELIEF FROM UR MOUNTED DEBTS. THERE IS ONE MORE THING TO ADD UP...........IF MJ IS ALIVE THE CONTRACT MUST HAVE BEEN SIGNED BY MJ OR ELSE IF HE IS REALLY DEAD THEN SOMETHING TERRIBLE N SINISTER IS HAPPENING . IF MJ IS REALLY DEAD THEN , HE WAS BRUTALLY MURDERED FOR HIS MUSIC STUFF TO ACQUIRE HIS ESTATE BY CREATING FAKE WILL.... OR IS HE DOING ALL THIS TO EXPOSE SOMEONE WHO TRIED TO BRING HIM DOWN........
Hello friends miss you!
I'll be honest, I have not read the 8 pages, but the last comment Deepu Pryanka, spoke little but all I think.
For me Michael is very much alive, and this is a great test.
Last night on a news program here in Rio de Janeiro, they reported this major contract, soon after on another channel the journalist reported this:
Family of Jackson signs the largest contract in history!
I thought: How so? Children can not sign anything, the family does not have any commitment to anything, who did it?
Lawyers, ok, but with orders? He had left it in the will? From what was reported the document was nothing authorizing the Sony and lawyers to create a contract of this magnitude.
Friends, this only confirms my theory.
Michael was behind everything, he sees everything, he knows everything, and manipulating, calling the shots in everything and everyone.
My fear is, that if he comes back, things can turn against him if there's one thing we can do is play with human feelings, you'll forgive me but this joke has gone too far.
I do not like, do not agree, I prefer the all clear, as it depends on me, no cd be bought, that he pay his debts, the clear so we can see,
This is the right attitude and just as it should be.
None of us deserve to pass and pay for it.
Again excuse the frankness. <!-- s:( -->:(<!-- s:( -->
I THINK MJ IS BEHIND THE CONTRACT SIGNING .. WHO KNOWS HE MIGHT HAD PATCHED UP WITH THEM N THAT CAN BE POSSIBLE....NOW AT PRESENT HE MAY BE AT GOOD TERMS WITH THEM.... MAY BE THAT COULD BE THE REASON OF SIGNING 7 YEARS CONTRACT VIT THEM....... JUST SEEING A POSSIBILITY NO OFFENSE. GOOD LUCK MJ. I THINK NEED RELIEF FROM UR MOUNTED DEBTS. THERE IS ONE MORE THING TO ADD UP...........IF MJ IS ALIVE THE CONTRACT MUST HAVE BEEN SIGNED BY MJ OR ELSE IF HE IS REALLY DEAD THEN SOMETHING TERRIBLE N SINISTER IS HAPPENING . IF MJ IS REALLY DEAD THEN , HE WAS BRUTALLY MURDERED FOR HIS MUSIC STUFF TO ACQUIRE HIS ESTATE BY CREATING FAKE WILL.... OR IS HE DOING ALL THIS TO EXPOSE SOMEONE WHO TRIED TO BRING HIM DOWN........
Hello friends miss you!
I'll be honest, I have not read the 8 pages, but the last comment Deepu Pryanka, spoke little but all I think.
For me Michael is very much alive, and this is a great test.
Last night on a news program here in Rio de Janeiro, they reported this major contract, soon after on another channel the journalist reported this:
Family of Jackson signs the largest contract in history!
I thought: How so? Children can not sign anything, the family does not have any commitment to anything, who did it?
Lawyers, ok, but with orders? He had left it in the will? From what was reported the document was nothing authorizing the Sony and lawyers to create a contract of this magnitude.
Friends, this only confirms my theory.
Michael was behind everything, he sees everything, he knows everything, and manipulating, calling the shots in everything and everyone.
My fear is, that if he comes back, things can turn against him if there's one thing we can do is play with human feelings, you'll forgive me but this joke has gone too far.
I do not like, do not agree, I prefer the all clear, as it depends on me, no cd be bought, that he pay his debts, the clear so we can see,
This is the right attitude and just as it should be.
None of us deserve to pass and pay for it.
Again excuse the frankness. <!-- s:( -->:(<!-- s:( -->
I THINK MJ IS BEHIND THE CONTRACT SIGNING .. WHO KNOWS HE MIGHT HAD PATCHED UP WITH THEM N THAT CAN BE POSSIBLE....NOW AT PRESENT HE MAY BE AT GOOD TERMS WITH THEM.... MAY BE THAT COULD BE THE REASON OF SIGNING 7 YEARS CONTRACT VIT THEM....... JUST SEEING A POSSIBILITY NO OFFENSE. GOOD LUCK MJ. I THINK NEED RELIEF FROM UR MOUNTED DEBTS. THERE IS ONE MORE THING TO ADD UP...........IF MJ IS ALIVE THE CONTRACT MUST HAVE BEEN SIGNED BY MJ OR ELSE IF HE IS REALLY DEAD THEN SOMETHING TERRIBLE N SINISTER IS HAPPENING . IF MJ IS REALLY DEAD THEN , HE WAS BRUTALLY MURDERED FOR HIS MUSIC STUFF TO ACQUIRE HIS ESTATE BY CREATING FAKE WILL.... OR IS HE DOING ALL THIS TO EXPOSE SOMEONE WHO TRIED TO BRING HIM DOWN........
Hello friends miss you!
I'll be honest, I have not read the 8 pages, but the last comment Deepu Pryanka, spoke little but all I think.
For me Michael is very much alive, and this is a great test.
Last night on a news program here in Rio de Janeiro, they reported this major contract, soon after on another channel the journalist reported this:
Family of Jackson signs the largest contract in history!
I thought: How so? Children can not sign anything, the family does not have any commitment to anything, who did it?
Lawyers, ok, but with orders? He had left it in the will? From what was reported the document was nothing authorizing the Sony and lawyers to create a contract of this magnitude.
Friends, this only confirms my theory.
Michael was behind everything, he sees everything, he knows everything, and manipulating, calling the shots in everything and everyone.
My fear is, that if he comes back, things can turn against him if there's one thing we can do is play with human feelings, you'll forgive me but this joke has gone too far.
I do not like, do not agree, I prefer the all clear, as it depends on me, no cd be bought, that he pay his debts, the clear so we can see,
This is the right attitude and just as it should be.
None of us deserve to pass and pay for it.
Again excuse the frankness. <!-- s:( -->:(<!-- s:( -->
I was talking to my aunt about this (she is MJ age) last week about MJ could still be alive... at first she was like no... then she thought about it, and was like you know what? Michael Jackson would do something like fake his death with his wild imagination LOL she laughed about it... I expect anything from Mr. Entertainment lol
I THINK MJ IS BEHIND THE CONTRACT SIGNING .. WHO KNOWS HE MIGHT HAD PATCHED UP WITH THEM N THAT CAN BE POSSIBLE....NOW AT PRESENT HE MAY BE AT GOOD TERMS WITH THEM.... MAY BE THAT COULD BE THE REASON OF SIGNING 7 YEARS CONTRACT VIT THEM....... JUST SEEING A POSSIBILITY NO OFFENSE. GOOD LUCK MJ. I THINK NEED RELIEF FROM UR MOUNTED DEBTS. THERE IS ONE MORE THING TO ADD UP...........IF MJ IS ALIVE THE CONTRACT MUST HAVE BEEN SIGNED BY MJ OR ELSE IF HE IS REALLY DEAD THEN SOMETHING TERRIBLE N SINISTER IS HAPPENING . IF MJ IS REALLY DEAD THEN , HE WAS BRUTALLY MURDERED FOR HIS MUSIC STUFF TO ACQUIRE HIS ESTATE BY CREATING FAKE WILL.... OR IS HE DOING ALL THIS TO EXPOSE SOMEONE WHO TRIED TO BRING HIM DOWN........
Hello friends miss you!
I'll be honest, I have not read the 8 pages, but the last comment Deepu Pryanka, spoke little but all I think.
For me Michael is very much alive, and this is a great test.
Last night on a news program here in Rio de Janeiro, they reported this major contract, soon after on another channel the journalist reported this:
Family of Jackson signs the largest contract in history!
I thought: How so? Children can not sign anything, the family does not have any commitment to anything, who did it?
Lawyers, ok, but with orders? He had left it in the will? From what was reported the document was nothing authorizing the Sony and lawyers to create a contract of this magnitude.
Friends, this only confirms my theory.
Michael was behind everything, he sees everything, he knows everything, and manipulating, calling the shots in everything and everyone.
My fear is, that if he comes back, things can turn against him if there's one thing we can do is play with human feelings, you'll forgive me but this joke has gone too far.
I do not like, do not agree, I prefer the all clear, as it depends on me, no cd be bought, that he pay his debts, the clear so we can see,
This is the right attitude and just as it should be.
None of us deserve to pass and pay for it.
Again excuse the frankness. <!-- s:( -->:(<!-- s:( -->
BE CAREFUL CAUSE FRANK PEOPLE HERE GET BASHED UP FOR EVERYTHING....
This is getting good. Iam so excited to hear "new" old music from Michael
On here however it says the first batch is expected by November. So do you think Michael may not come back this year now because of this?
I THINK MJ IS BEHIND THE CONTRACT SIGNING .. WHO KNOWS HE MIGHT HAD PATCHED UP WITH THEM N THAT CAN BE POSSIBLE....NOW AT PRESENT HE MAY BE AT GOOD TERMS WITH THEM.... MAY BE THAT COULD BE THE REASON OF SIGNING 7 YEARS CONTRACT VIT THEM....... JUST SEEING A POSSIBILITY NO OFFENSE. GOOD LUCK MJ. I THINK NEED RELIEF FROM UR MOUNTED DEBTS. THERE IS ONE MORE THING TO ADD UP...........IF MJ IS ALIVE THE CONTRACT MUST HAVE BEEN SIGNED BY MJ OR ELSE IF HE IS REALLY DEAD THEN SOMETHING TERRIBLE N SINISTER IS HAPPENING . IF MJ IS REALLY DEAD THEN , HE WAS BRUTALLY MURDERED FOR HIS MUSIC STUFF TO ACQUIRE HIS ESTATE BY CREATING FAKE WILL.... OR IS HE DOING ALL THIS TO EXPOSE SOMEONE WHO TRIED TO BRING HIM DOWN........
Hello friends miss you!
I'll be honest, I have not read the 8 pages, but the last comment Deepu Pryanka, spoke little but all I think.
For me Michael is very much alive, and this is a great test.
Last night on a news program here in Rio de Janeiro, they reported this major contract, soon after on another channel the journalist reported this:
Family of Jackson signs the largest contract in history!
I thought: How so? Children can not sign anything, the family does not have any commitment to anything, who did it?
Lawyers, ok, but with orders? He had left it in the will? From what was reported the document was nothing authorizing the Sony and lawyers to create a contract of this magnitude.
Friends, this only confirms my theory.
Michael was behind everything, he sees everything, he knows everything, and manipulating, calling the shots in everything and everyone.
My fear is, that if he comes back, things can turn against him if there's one thing we can do is play with human feelings, you'll forgive me but this joke has gone too far.
I do not like, do not agree, I prefer the all clear, as it depends on me, no cd be bought, that he pay his debts, the clear so we can see,
This is the right attitude and just as it should be.
None of us deserve to pass and pay for it.
Again excuse the frankness. <!-- s:( -->:(<!-- s:( -->
YES I THINK THE WAY U EXACTLY THINK..... MJ IS BEHIND ALL THIS.. KEEP WATCHING WITH THE MONEY HE GETS AFTER RELEASING HIS ALBUMS,,, HE WILL PAY ALL HIS DEBTS N MOVE WITH HIS CHILDREN TO A SECRET LOCATION WHICH WILL BE UNKNOWN TO THE WORLD..... AND GIRL PEOPLE WILL KEEP BELIEVING HE IS DEAD.... MAY BE THIS COULD BE HIS PLAN....OR HE MAY SHOW UP NEXT YEAR SUDDENLY... NOT THIS YEAR BECAUSE HIS MUSIC IS BEING RELEASED THIS YEAR..... N IF HE COMES BACK NO ONE WILL HIS STUFF.... BUT MJ PLEASE COME BACK .... ILU.
@ Darkchild...thank you so much. That was very helpful. I wonder who this attorney in Atlanta is.
You are so welcome, Jill. I hope that the article was helpful to you. I never heard of that lawyer before. God bless you, Jill. Thank you for being here with us on this great adventure! <!-- s:) -->:)<!-- s:) -->
LET US KEEP THE DEAL THING ASIDE.... WHAT I THINK IS MJ WONT BE SHOWING UP TILL HIS DEBTS ARE PAID OUT.... IF MJ IS ALIVE ,THE MAIN PURPOSE OF HOAXING HIS DEATH COULD BE DUE TO MOUNTED DEBTS.... TO BE FRANK MOST OF THE PEOPLE WERE LEAST INTERESTED IN HIM N HIS MUSIC , EXCEPT FANS LIKE US.... OUR POOR MICHAEL WAS COMPLETELY FADED N WAS CRITICIZED N RIDICULED BY EVERYBODY EXCEPT SOME... N WAS SURROUNDED BY FROM ALLSIDES... AFTER HIS SUDDEN DEATH ,PEOPLES INTEREST IN HIM WAS AWAKENED N REVIVED TOTALLY N EVERYONE STARED BUYING HIS STUFF N STARTED LOVING HIM AGAIN. KEEP WATCHING HIS ALBUMS, WILL BE SOLD LIKE HOT CAKES .... I FEEL HAPPY FOR MJ.LU.
MJ doesn't own a large chunk of Sony. He's 50/50 of the publishing divison and of that 50% he owned he refinanced a large loan with Sony using the catalogue as collateral. With this deal came the conditional option giving Sony the right to purchase 25% of his remainding 50%. There was news as far back as 2006 regarding Sony refinancing his loans with Fortess. He merged his ATV calatolgue with the publishing division. That is only part of Sony, not half the company.
It was in Sony's best interest that they refinanced for him. They didn't do it for Michael. They did it for themselves. If he had gone into bankruptcy or default or whatever, his share of the catalogue would of been up for grabs and there would not be any shortage of buyers. Sony want the rest of the catalogue and keeping it with Michael would give them more a chance.
Again, this new contract is a win-win situation for Sony.
Michael Jackson Estate's record deal raises questions
The Probate Lawyer Blog featured this article about the Michael Jackson Estate several weeks ago, posing the question of whether it is ethical for estate executors to seek a 10% fee for certain business deals they reach for such a high-profile estate. It's especially problematic when you factor in that one of the executors was Michael Jackson's attorney.
Well, this attorney, John Branca, and his co-executor, John McClain (a music executive), just hit the mother-load. It was widely reported yesterday that they brokered a deal worth up to $250 million dollars (that's right -- one quarter of a billion dollars!). What was the deal for? Sony announced a seven-year distribution agreement for unreleased music recorded by the late King of Pop (as well as related video footage).
Yes that means that Branca and McClain earned $12.5 million each for one deal.
Why do we question this? For several reasons, actually. First, it's the job of executors to bring in as much money as possible for an estate that has earning potential like this estate has. They shouldn't need a 10% incentive to do the job they're required by law to do.
Second, Branca, reportedly, is the attorney who prepared the will and trust that named him as the co-executor and co-trustee. Because of these documents that he created, he just made $12.5 million -- in addition to the other fees he's already earned (and will continue to earn).
Would it be ethical for an attorney to create a will for a client to sign that leaves $12.5 million to that attorney as a direct beneficiary? In most cases, no, it wouldn't. So why is this attorney allowed to earn that much as an executor fee?
Finally, there's the issue which we discuss in our book, "Trial & Heirs: Famous Fortune Fights!", that Michael Jackson's Trust wasn't funded properly. If it had been, then his estate would have been kept out of court and handled in private. It's also entirely possible that his trust document (which hasn't been released to the public) may have specified what compensation the trustees would have received.
IF that's the case (just speculating here), then Branca and McClain wouldn't necessarily have been able to receive this percentage fee. But, because Jackson's Trust wasn't properly funded, thereby requiring it to pass through the probate court process, it opened the door to allow this type of fee to be approved by the judge (again, if the trust document addressed their compensation, which isn't unusual). And the judge did approve the executors' 10% fee in this case.
A properly-used estate plan would have bypassed court entirely. Jackson's estate plan didn't do that. The attorney who prepared that estate plan now just earned tens of millions of dollars because of that estate plan.
And it's all legal. But is it ethical?
Some feel it is. After all, Branca is a respected entertainment lawyer and McClain is an experienced music executive. They have the expertise to broker deals like this. And clearly, judging by the amount of money they've brought into the estate, they're good at what they do. And Michael Jackson's heirs are benefiting from their expertise.
If it's standard to compensate entertainment industry experts with this type of fee, why shouldn't Branca and McClain earn what may be considered fair compensation in that line of business?
There is some merit to this position. After all, Michael's mother, Katherine Jackson, spent months battling McClain and Branca in court over this estate (until she hired a new attorney, at which time she changed her position). Yet she didn't object to their 10% fee. If a primary beneficiary of Michael's estate didn't object to this generous fee, why should anyone else?
What do you think?
Posted by: Andrew W. Mayoras & Danielle B. Mayoras, co-authors of Trial & Heirs: Famous Fortune Fights! and co-founders of The Center for Probate Litigation and The Center for Elder Law in metro-Detroit, Michigan, which concentrate in probate litigation, estate planning, and elder law. Andrew & Danielle are husband and wife attorneys, professional speakers and consultants across the country.[/b]
2009 July 3 /PRNewswire/ -- Mina Sirkin, an expert Trust and Estates attorney in Los Angeles says, "I have seen a lot of wills in my career, but the copy of Michael Jackson's will filed with the court leaves me with way too many questions as a trust and estates lawyer!"
While some believe everything they see filed in the courts as true, sometimes, you just have to ask questions about those documents.
In Michael Jackson's case, the copy of Michael's signature on the will (copy) doesn't look like the copy of Michael's signature on the birth certificate of his son Michael Joseph Jackson, Jr., also known as Prince Michael Jackson. Some people may say, it's just the size of the signature because it is in a small box, but look closer ...
See the Will and signature of Michael Jackson on the copy of the will filed with the court here:
Michael Jackson Will Copy (<!-- m -->http://lawmarketingsystems.typepad.com/<!-- m --> ... py2002.pdf)
See Birth Certificate Picture here: Copy of Birth Certificate of Michael Joseph Jackson, Jr. (<!-- m -->http://lawmarketingsystems.typepad.com/<!-- m --> ... icates.pdf)
I'm not a document examiner, but I'm sure if the original actually turns up, that there will be dozens of forensic document examiners looking at the original signatures on all documents Michael may have signed around 2002.
Now, looking at all the other flaws, I noticed that the press version of the copy of the will redacted all the names and addresses of the witnesses, but my pre-press copy has the names of all the witnesses.
Two of the three witnesses are John McLain and Barry Siegel. Barry Siegel, a CPA who ran the Provident Financial Management, appears to have declined to act as a co-executor. But the letter attached to the petition which looks like a declination is not current. It is dated in 2003. This is unusual in that in most cases where a nominated executor declines to serve as executor, he or she will usually sign a declination after the death of the testator. This might infer some incident which caused Siegel to refuse the duty of executor between July, 2002 and August, 2003.
Need I say that even the copy of the signature of Barry Siegel on the alleged declination letter dated 2003 doesn't look like the copy of the Barry Siegel signature on the witness area dated 2002! Why on earth would the declination referred to in the August 26, 2003 letter not be an actual attachment to the petition? Who would think of that one?
The addresses of John McClain, and Barry Siegel are both redacted. The signature of the third witness is not legible. In California, witnesses are needed to authenticate a typed will. My guess is that Mr. McLain and Mr. Siegel, in the words of Desi Arnaz, "will have some esplaining to do... !"
"When they say, why, why, tell em' that it's human nature..." -- Michael Jackson
Mina Sirkin is a Family Trust Lawyer in Los Angeles, California. She was the expert on the Anna Nicole Smith case for CBS/KCAL9, Britney Spears Conservatorship and is currently the expert to CNN and Inside Edition (CBS). <!-- m -->http://SirkinLaw.com<!-- m -->. 818-340-4479. Press and Media Contact only: <!-- e --><a href="mailto:SirkinMediaContact@gmail.com">SirkinMediaContact@gmail.com</a><!-- e --> or Karen Reyes for interview scheduling: 818-340-4479 and 818-438-7170.
“In October 2001, Jackson released Invincible. This was his first full-length album in six years, and it turned out to be the last album of new material he released while still alive. The release of the album was preceded by a dispute between Jackson and his record label, Sony Music Entertainment. Jackson had expected the licenses to the masters of his albums to revert to him sometime in the early 2000s. Once he had the licenses, he would be able to promote the material however he pleased and he would also be able to keep all the profits. However, due to various clauses in the contract, the revert date turned out to be many years away. Jackson discovered that the attorney who represented him in the deal was also representing Sony.Jackson was also concerned about another conflict of interest. For a number of years, Sony had been pushing to buy all of Jackson's share in their music catalog venture. Jackson feared that Sony might have something to gain from Jackson's career failing, since if his career did fail he would have to sell his share of the catalog.
These conflicts were utilized by the entertainer to leverage an early exit to his contract. Just before the release of Invincible, Jackson informed the head of Sony Music Entertainment, Tommy Mottola, that he was leaving Sony. As a result, all singles releases, video shootings and promotions concerning the Invincible album were canceled. In spite of the uproar preceding its release,”
BELOW IS REGARDING COURT TRANSCRIPT INFO IN 2005 TRAIL
Branca was an attorney in Los Angeles doing music work for Michael.
Branca was a partner at the Ziffren law firm in LA. That firm also represented Sony.
Sony paid money into the offshore account for Branca with the intent for Branca to sell out Michael.
Bear in mind that in this time period, Michael was in conference talks with Sony concerning both of their interests in the catalog.
Michael cleaned house so to speak, firing Branca and other associates. He also had Branca and a few other investigated.
Snippet below is from the 2005 court transcripts:-
Here is one question put to LeGrand by Mr Mesereau during the 2005 trial
Q: Was it your belief when you started this investigation that Al Malnik, Tommy Motolla, John Branca and people at Sony were trying to find a way to get Mr Jacksons interest in that Music Catalog.
A: I'm not sure that I would include Al Malnic in that group, but certainly was concerned that Branca and Motolla in particular, had set the stage so to speak, for Sony to be able to obtain Michaels interest in the Sony/ATV joint venture.
I THINK MJ IS BEHIND THE CONTRACT SIGNING .. WHO KNOWS HE MIGHT HAD PATCHED UP WITH THEM N THAT CAN BE POSSIBLE....NOW AT PRESENT HE MAY BE AT GOOD TERMS WITH THEM.... MAY BE THAT COULD BE THE REASON OF SIGNING 7 YEARS CONTRACT VIT THEM....... JUST SEEING A POSSIBILITY NO OFFENSE. GOOD LUCK MJ. I THINK NEED RELIEF FROM UR MOUNTED DEBTS. THERE IS ONE MORE THING TO ADD UP...........IF MJ IS ALIVE THE CONTRACT MUST HAVE BEEN SIGNED BY MJ OR ELSE IF HE IS REALLY DEAD THEN SOMETHING TERRIBLE N SINISTER IS HAPPENING . IF MJ IS REALLY DEAD THEN , HE WAS BRUTALLY MURDERED FOR HIS MUSIC STUFF TO ACQUIRE HIS ESTATE BY CREATING FAKE WILL.... OR IS HE DOING ALL THIS TO EXPOSE SOMEONE WHO TRIED TO BRING HIM DOWN........
yes i feel the same who knows anything can happen in show biz . enemies can turn into friends n it is vice versa ... <!-- s:) -->:)<!-- s:) -->
Branca and McClain were grossly negligent in their
statements to the court. They have concealed material
information from the court. They have conducted themselves
in a fraudulent deceptive manner where their veracity can
no longer be trusted.
Furthermore Michael Jackson terminated John Branca in writing
as his attorney on February 3 2003 (Exhibit He instructed Branca
to resign from all positions in his personal and business life. However,
unknown to Michael Jackson, Branca failed to follow his instructions
regarding any purported will.
Nevertheless, Branca remains obligated to comply with those
instructions and resign as Executor.
On February 3, 2003 Michael Jackson instructed Branca to turn
over to his new attorneys all records, files and papers dealing
with the personal and Business life. While Branca turned over
his other files Branca secretly refused to turn over the purported
July 7. 2002 Will and March 2002 Trust.
In violation of his fiduciary duties, Branca concealed the purported
will and concealed his refusal to resign. Branca's secret concealment
of the purported Will and failure to resign continued for six (6) years
despite Michael Jackson numerous demands Branca turn over all
documents and resign from all positions.
It wasn't until July 1, 2009, that Branca produced the previously
concealed Will which he had intentionally concealed for six (6) years.
The courts should not permit this unethical violation.
Michael Jackson Terminated Branca because of Embezzlement.
In 2003, Michael Jackson launched an investigation into Branca
embezzlement activities regarding Michael Jacksons money.
The investigators, the firm of INTERFOR in New York, reported
in February , March with a final report on April 15, 2003 there
was an improper relationship between Sony Executive Tommy
Mottola and John Branca whereby Branca and Motolla were
illegally funneling Michael Jackson's money to off shore accounts
in the Caribbean. (Exhibit C)
INTERFOR REPORT: The Interfor Report caused Michael
Jackson great anger and Michael Jackson demanded Branca
never have anything to do with him his business his family
or his personal life again.
I agree 100% x 10...lol. Branca creeps me out more than DiLeo or Tohme. Thugs aren't just found standing on dimly lit streets or lurking in dark alleys. They can hide behind custom-made suits, college degrees and sit in fancy corporate offices.
MJ fired Branca February 3, 2003 and the Bashir documentary aired in the UK that same day. It was aired February 6th in the US and a school official filed a complaint on behalf of Gavin Arvazio after watching the show. Janet Arvazio was interviewed by Dept of Child & Family Services on February 20th as a result. February was a very high voltage month as this stuff started to unravel.
The timing stinks and makes me think that Branca was moving the "take MJ down" plans to the next level. What many people fail to realize is that when someone is motivated by greed or revenge they don't care about their history/past relationship with someone. It may even be because of their personal knowledge of their target that they are better equipped to aim below the belt and aim hard. Sure ..at one time ..Branca and MJ were friends. That was before MJ discovered that Branca was screwing him over. To paraphrase a line from The Godfather...It's not personal...it's business.
Does anyone else find it weird that there were just a few people managing MJs affairs. C'mon no one is a jacks of all trades. Why did MJ have one or possibly two people managing such a vast business empire? That in itself leaves too much power and control in the hands of just a few people. If more people were involved and delegated to handle certain aspects of business then there would have been more checks and balances across the board.
Sorry...meant to add that these are not my own words....it is from a blog I came across...my own words are these:
I agree 100% x 10...lol. Branca creeps me out more than DiLeo or Tohme. Thugs aren't just found standing on dimly lit streets or lurking in dark alleys. They can hide behind custom-made suits, college degrees and sit in fancy corporate offices.
MJ fired Branca February 3, 2003 and the Bashir documentary aired in the UK that same day. It was aired February 6th in the US and a school official filed a complaint on behalf of Gavin Arvazio after watching the show. Janet Arvazio was interviewed by Dept of Child & Family Services on February 20th as a result. February was a very high voltage month as this stuff started to unravel.
The timing stinks and makes me think that Branca was moving the "take MJ down" plans to the next level. What many people fail to realize is that when someone is motivated by greed or revenge they don't care about their history/past relationship with someone. It may even be because of their personal knowledge of their target that they are better equipped to aim below the belt and aim hard. Sure ..at one time ..Branca and MJ were friends. That was before MJ discovered that Branca was screwing him over. To paraphrase a line from The Godfather...It's not personal...it's business.
Does anyone else find it weird that there were just a few people managing MJs affairs. C'mon no one is a jacks of all trades. Why did MJ have one or possibly two people managing such a vast business empire? That in itself leaves too much power and control in the hands of just a few people. If more people were involved and delegated to handle certain aspects of business then there would have been more checks and balances across the board.
Mo and I have been discussing Branca many times. I get you, but the thing that is bugging me and that I don't get, is why should Branca be able to be an executor of the estate while th will is false? Why is no one fighting the will if Branca is in the bad camp? Why is Branca working for 'only' 10%? I hope you get what I mean. It confuses the hell out of me. And still there is a little voice in my head saying this deal is not that bad.... "They never thought I would out think them". Branca screwed Mike, Sony screwed Mike, Sony trusts Branca because he screwed Mike... But on who's side is he? There is a very good chance Sony is screwed and if that is the case, Branca has to be on Mike's side.
"For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places."
Comments
1. http://money.cnn.com/2009/10/23/news/companies/michael_jackson_assets.fortune/index.htm
[Citing:
Behind Michael Jackson's mad money
Was the King of Pop smart, lucky, or a little off about how he conducted his finances? Turns out, he managed to be all at the same time.
By Richard Siklos, editor at large
Last Updated: October 23, 2009: 2:23 PM ET
NEW YORK (Fortune) -- We all know that Michael Jackson was one of the greatest entertainers who ever lived. But when it came to how he conducted his business and financial affairs, was he smart, lucky, or mad? As depicted in the Fight Over Michael's Millions, he managed to be all at the same time.
Repeatedly, people who worked with Jackson told me that although he had a shrewd sense of business, he had no appreciation of -- or concern about -- the value of money. He came into an unfathomable amount of it during the 1980s at the apex of his success, and he hit a double-home run when he parlayed $47.5 million into his half-interest in what is today Sony/ATV Publishing, which is now worth more than 10 times that.
It's interesting that despite leaving his famed Neverland Ranch nearly five years ago and vowing never to return, Jackson never bought another home. My impression is that is because he only believed in doing things on an ever grander scale and he was biding his time till he could come back bigger than ever.
This explains the apparent lunacy of Jackson, despite the crippling loans he carried, this year planning to buy a house in Las Vegas for close to $50 million and even having a $15 million advance for the house built into his contract with AEG, the promoter of his comeback concerts.
According to Jackson's recent manager Tohme Tohme, Jackson's largesse extended to people he cared for -- he says Jackson agreed to buy a $600,000 motor home for his mother Katherine and asked that a $400,000 bracelet that he liked be bought and sent to one of his celebrity pals -- both in the past couple of years when he was on the brink of financial ruin.
Yet, Jackson understood that he needed to make money to get out of hock. One of the many ironies in Jackson's tragedy is that he was poised to sell a warehouse full of his vast possessions at an auction in Los Angeles this past April. He called that off at the last minute and now, given the interest in Jackson since his death, his stuff is undoubtedly worth far more.
Plus, some pieces are now about to start earning his estate money as part of a touring exhibition of his memorabilia slated to begin in London next week. (Go here if you want to see the catalogue from the aborted auction.) Whether the Jackson provenance is a plus or minus for the real estate value of Neverland when it is eventually sold remains to be seen.
When it came to negotiating deals (which he often reneged on), Jackson could be sly. He understood that he had assets people coveted -- including proximity to himself -- and that he could find ways to moonwalk around financial disaster.
Sony/ATV was a calling card that separated him from being a mere musical megastar. By following Paul McCartney's advice and buying up music catalogues, Jackson bet wisely on a segment of the music business that has actually grown over the past few years, as music gets licensed for new uses, like ring tones and advertising and TV shows like "American Idol" and video games like Rock Band.
And whether he intended to or not, Jackson picked a business that did just fine -- if not better -- without him involved day to day. During the years Jackson was in the figurative wilderness, he was also an absentee partner at Sony/ATV. Until Sony secured more control over business decisions when it helped Jackson hold onto his stake in the company in 2006, it was apparently impossible to track down Jackson and get him to agree to things.
With a freer hand, Sony was more easily able to make more than $500 million of acquisitions and bring in Martin Bandier, a music industry veteran, to build and run the Sony/ATV in early 2007. Last year, the company made around $65 million in operating profit on revenue of close to $500 million, insiders claim, and the business won an internal award at Sony (SNE) for its rich margins.
Jackson cherished his association with the business and appreciated how Sony had helped him in his pinch, but he was also mistrustful of the Japanese conglomerate after falling out with his record label there a few years ago. It probably didn't help that the partners didn't hold a single board meeting between 2002 and 2007, and Jackson never bothered to meet Bandier in person.
When he agreed to the comeback shows in London, Jackson wanted it known that he was going back to work for the benefit of his three children -- he and his youngest son, Prince Michael II (also known as "Blanket") even showed up in matching black suits when he went to meet Phillip Anschutz, the tycoon whose company, AEG, was to stage the concerts.
Jackson explained that, more than the money, he wanted to show his kids what he had done in his heyday. But at the same time, his advisors say, he mused about a future when he would somehow buy back the other half of Sony/ATV and live off publishing riches in his big mansion in Las Vegas while making movies and doing other things.
It was an impossible dream.
Read the full story on Michael Jackson's assets. To top of page
First Published: October 23, 2009: 4:18 AM ET]
2. http://money.cnn.com/2009/10/23/news/companies/michael_jackson_money_assets.fortune/index.htm?postversion=2009102310
[Citing:
The fight over Michael's millions
The King of Pop's posthumous success has produced a gusher of money. Now, where his estate is concerned, the Michael Jackson show is just getting started.
By Richard Siklos, editor at large
Last Updated: October 23, 2009: 2:25 PM ET
(Fortune Magazine) -- On a recent Friday afternoon, workers toiled away at Neverland Ranch as part of a curious restoration effort that accelerated after Michael Jackson's sudden death on June 25. The main grounds of the 2,700-acre property had been cleared of encroaching chaparral and were now close to the condition they had been in when Jackson last set foot here some five years ago.
The flower beds next to the Disneyland-replica train station were pristine, though the trains were in storage and the midway amusement rides and zoo animals that once populated the property were gone. The Tudor-style mansion, guesthouse, and separate movie theater/dance studio were in move-in condition. The theater even had fresh candy at its concession stand, though the building's only inhabitant was a wayward bat stranded in the restroom.
It was a bit sad and eerie, albeit, from an MTV Cribs kind of viewpoint, quite excellent.
Through all the hoopla following Jackson's death, no one has said publicly what will become of Neverland, which Los Angeles private equity firm Colony Capital took control of after the property nearly went into foreclosure last year.
The Jackson family's desire to have Michael's body interred here proved too complicated, as has the notion of turning it into a Graceland-like destination for fans. There is talk of moving some of the property's structures, which include a giraffe barn, to Las Vegas with an eye to establishing a Neverland attraction there and selling the ranch.
Under terms of an agreement struck with Jackson after Colony purchased the note on the property for $23.5 million, when Neverland is eventually sold, Colony will recoup its investment in the note plus accrued interest, its management and upkeep expenses, and around 12% of everything above that as a success fee. The rest will go to Jackson's estate.
While he declined to confirm the details of his arrangement with Jackson, Tom Barrack, the CEO of Colony, says the Neverland property ought to be worth $60 million to $70 million.
If so, that would be just one source of a sudden gusher of money into Jackson's estate, the bulk of which he left to his mother and three young children.
Two years ago Jackson was headed for insolvency, a consequence of having barely worked in nearly a decade, a period during which he fought child molestation charges and became better known for his eccentricities than for his musical skills. The deal with Colony, and Jackson's decision to stage a series of comeback concerts, were his way out from under debts that had grown from $90 million a decade ago to around $435 million today.
Though Jackson made some savvy investments early in his career, his loans piled up through an astonishing combination of careless financial decisions -- made with an oft-changing and colorful parade of business advisers -- a mountain of legal bills and distractions, and uncontrollable spending.
"When it came to money, he was almost a contradiction," says Randy Phillips, who runs the company that planned to stage Jackson's comeback. "He didn't care about money but liked to spend money and knew that he had to make money."
His demise might have been a tragic postscript to a faded career. Instead, the singer is having a posthumous comeback that promises to dwarf that of Elvis Presley (whose daughter Jackson was once married to). This year Jackson's estate stands to bring in close to $200 million from music sales, merchandising, and book deals; an exhibition of memorabilia; and especially a hastily made documentary based on his comeback concert rehearsals that hits theaters Oct. 28.
The film, "This Is It," is tracking to be a box office success -- with more tickets presold than the next "Twilight" installment -- and riches from DVD sales could follow. Jackson has sold some 5 million albums and 10 million downloads since his death in the U.S. alone, according to Soundscan, and plans are in the works for at least two albums of unreleased songs. (To put that in perspective, he had sold just under 300,000 records in the half-year before his death.)
In all, Jackson's estate would likely be worth $100 million or more if it were liquidated today, but properly managed, it ought to be worth multiples more in time.
The story of Michael's millions -- reconstructed here from private documents, court files, and dozens of interviews with people who worked with the singer -- is as off-the-wall as he was. Barrack recalls being charmed by the self-proclaimed King of Pop when he first met him last year but deeply skeptical about doing business with him.
"Everybody said two things about him," Barrack says. "Firstly, if Michael Jackson came back it would be the greatest thing in music history. And secondly, it would never happen." Improbably, both have come true.
A brief recounting of tragic and familiar facts: Jackson died suddenly in Los Angeles at age 50 amid final rehearsals for what was expected to be a 50-date gig at London's O2 arena. The cause was a combination of prescription drugs, including a surgical anesthetic, propofol, that Jackson was reportedly being given to treat insomnia. The death is being treated as a homicide, and an investigation continues.
As demand for the London shows demonstrated -- all 800,000 tickets sold out within five hours -- Jackson, despite his tabloid travails, was still a megastar. From child stardom with his brothers in the group the Jackson 5, the Gary, Ind., native skyrocketed as a solo act in the 1980s. His album "Thriller" has sold more than 70 million copies, and he is the biggest-selling recording artist of all time.
Between "Thriller," its very successful follow-up, "Bad," and a 120-date stadium tour and sponsorship deals, Jackson earned as much as $350 million, estimates his manager during that period, Frank DiLeo. Paul McCartney, with whom Jackson recorded the single "Say Say Say," turned him on to the idea of buying music publishing rights, reportedly saying, "This is the way to make big money."
Jackson began buying some publishing catalogues with his earnings, including those of Sly and the Family Stone. But McCartney ended up miffed when, in 1985, Jackson -- with the help of his then-lawyer, John Branca -- paid $47.5 million for ATV Music Publishing, a catalogue that included more than 250 Beatles songs. (It was around this time that Jackson also bought Neverland, for $17 million in cash, after visiting McCartney, who happened to be renting it during a video shoot for "Say Say Say.")
Separately, Jackson set up a company called MiJac to hold the publishing rights for what would eventually be eight studio albums of his own music, plus the other catalogues he owned pre-ATV.
In the 1990s, Jackson's ambitions grew ever larger, but his meteor started to sputter. He faced accusations of child molestation and settled a civil suit for $15 million. He burned through piles of money on movies and other ventures that didn't pan out. In 1995 he merged ATV with a publishing business owned by his recording label, Sony (SNE), in a deal that valued ATV at far more than what Jackson had paid -- $115 million plus half the combined company.
Jackson wanted to transcend being a music performer by making films and theme park attractions and videogames. His short video, "Captain EO," directed by Francis Ford Coppola, was shown in 3-D at Disney theme parks. But the only feature movie project he ever completed, called "Moonwalker," failed to find a U.S. distributor when it was released.
By the late 1990s, according to court filings, Jackson had borrowed $90 million from NationsBank, collateralized by his half-interest in what was now called Sony/ ATV. Myung-Ho Lee, a Korean businessman who for a time was Jackson's business manager, claimed in a lawsuit that he lined up "desperately needed financing" from Bank of America (BAC, Fortune 500) (which had merged with NationsBank) to refinance that loan and borrow more -- increasing Jackson's debts to $220 million.
Some of that new money was pumped into dotcom ventures, including Tickets.com, a gaming company, and a fuel-cell business. In court papers Lee also claimed he was not paid for his services and accused Jackson of "bizarre and extravagant" behavior. (Jackson claimed in response that it was Lee who had defrauded him.) "Michael Jackson was -- and is -- a ticking financial time bomb waiting to explode at any moment," Lee said in his complaint.
The case was settled not long after Jackson's last studio album, "Invincible," was released, in 2001. Compared with his past chart busters, "Invincible" had lackluster sales, and Jackson was unhappy.
Bob Daly, who ran Warner Music (WMG) for years and later the Warner Bros. studio, knew Jackson through his wife, the songwriter Carol Bayer Sager, to whom Jackson had dedicated the album. One day Jackson asked Daly, as a favor, to investigate whether Sony had cheated him in the making of the album. Daly reviewed the album's financing and found nothing untoward.
"When I told him that, he sort of disappeared on me," recalls Daly. "Some people don't like hearing what they don't want to hear." Soon after, Jackson had a blowup with Sony during which he was photographed carrying a placard portraying Sony Music's then chief as a devil-like figure.
Before long Jackson and Sony Music parted ways -- a situation that layered tension and mistrust onto his continuing partnership in Sony/ATV, which was operated as a separate entity from the music business.
At this point Jackson had a staff (or "organization," as he liked to say) numbering some 50 people on his payroll. Upkeep at Neverland was costing upwards of $4 million a year, and Jackson was also underwriting the staff and upkeep costs of the Encino, Calif., compound where his mother and other family members lived.
Jackson sought help from a colorful roster of managers and advisers that included a guy who Jackson didn't realize was a gay porn producer, a Florida lawyer who once represented mobster Meyer Lansky, a prominent member of the Nation of Islam, and Michael's own brother Randy.
Finances took a back seat as Jackson spent two years fighting new child molestation charges filed against him in 2003. During his successful defense, according to court papers, Jackson received $2 million from Sheikh Abdulla, the 33-year-old son of the ruler of Bahrain, to help foot his legal bills.
The sheikh, who had ambitions to be in the music business, had taken a shine to Jackson after being introduced by Michael's brother Jermaine. He says in court papers that he took care of the utility bills at Neverland for a time and helped Michael arrange his first mortgage on the property. The sheikh would describe his new friend as "a person who is very switched on, a fantastic businessman and fantastic intellectual."
Several weeks before he was acquitted, Jackson attended the funeral of lawyer Johnny Cochrane. There Jackson confessed his financial straits to Ron Burkle, the Yucaipa Cos. financier, whom Jackson had befriended.
Jackson asked Burkle if he would have an accountant look at Jackson's troubled finances. Burkle agreed, eventually telling the singer that his spending was untenable and he either needed to cut back dramatically or go back to work.
But Jackson told him, as he did others, that under no circumstances did he want to go back to performing. At the very least, Burkle insisted that Jackson begin signing all his own checks so that he could see how much he was paying for things.
Most of Neverland's staff was laid off, and Jackson -- who said he felt violated after police raided his home -- vowed never to return there. Soon after his acquittal, Jackson was living in Bahrain with his children as a guest of the sheikh.
Amid all the negative publicity swirling around Jackson, Bank of America quietly sold the loans it held on Jackson's interest in Sony/ATV, MiJac, and Neverland at a steep discount to Fortress Investments (FIG), a big hedge fund that specialized in distressed assets.
Because of covenant breaches and penalties, the loans now carried stiff terms, with an interest rate in the mid-teens, say two people who were involved in Jackson's finances.
Jackson's income consisted of small dividends from Sony/ATV, $10 million or so from MiJac, plus roughly $10 million from music royalties and other sources -- but that was not enough to stay ahead of his mounting interest payments and his legal and living expenses.
"He always was asset rich and cash-flow poor," one of these people says. "The best way to think about it is a middle-income family that spends too much on their credit card and doesn't care about the fees."
In late 2005, Jackson received a fax from Robert Wiesenthal, the chief financial officer of Sony's U.S. business. Wiesenthal understood that Jackson was days from defaulting on his Fortress publishing loan and offered to meet to discuss ways to help.
Besides aiding a partner, Sony was concerned that Jackson's half of Sony/ATV could end up in bankruptcy court -- or in the hands of an outsider like Burkle or Fortress. (Burkle declined to be interviewed, and Fortress did not respond to an interview request.)
Howard Stringer, Sony Corp.'s chairman, dispatched Wiesenthal to Dubai. In a gilded hotel suite, Wiesenthal met with Jackson and several of the sheikh's advisers and explained that Sony had lined up bankers from Citi who were willing to refinance Jackson's ATV debt on much better terms. And Sony agreed to a dividend policy from the publishing company that would help cover interest payments on the ATV loan.
In exchange, Sony received a freer hand to make investment decisions without Jackson's approval; a right of refusal on his stake; and an option to buy half of Jackson's half for around $250 million. To everyone else's surprise, Fortress exercised a right it held to match any financing terms and held onto its Jackson loans, though only for a short term.
Problems solved? Of course not. In Bahrain, Abdulla had given Jackson use of a Rolls-Royce and a Maybach and bought him jewelry and watches and a gold statue. But after a few months their relationship became another tale of mutual hurt.
Jackson left Bahrain, and Abdulla sued him for reneging on an agreement to start a label and record songs together -- including a Hurricane Katrina relief song they'd spent weeks preparing. Jackson claimed that he either did not know what he was signing or was misled. The case went to trial in London but was settled just before Jackson was to testify.
Jackson moved mostly around Europe with his children, at one point in 2006 living in Ireland and contemplating settling there. According to Raymone Bain, Jackson's spokeswoman and general manager at the time, although Jackson was focusing on raising his children, he was also determined to revive his career.
Jackson told Bain, a crisis specialist who had been spokeswoman for incarcerated D.C. mayor Marion Barry, that two constant subjects of media inquiry were off-limits: his children and his finances. "My finances are my business," he said. "Let them think I'm broke."
Jackson invited Bob Sillerman, the Wall Street entrepreneur who had acquired Elvis Presley Enterprises, to visit him in Ireland to talk about ways to turn Neverland into a fan destination. And although he had been hands-off at Sony/ATV, he was excited about acquisitions the company was making, even calling the legendary songwriter Mike Stoller before the company acquired the catalogue owned by him and Jerry Lieber, which, to Jackson's delight, included the Elvis hits "Hound Dog" and "Jailhouse Rock." "He wanted to really assure Jerry and me that we would be in the best of hands," recalls Stoller.
The Fortress loans were coming due yet again at the end of December 2007. Barclays refinanced the $300 million loan against Sony/ATV from Fortress. HSBC (HBC) lent $30 million against MiJac. Plainfield Asset Management, a hedge fund, loaned another $40 million against MiJac at a 16% interest rate on terms that allowed Jackson to defer payments while the amount due grew.
The financing was supposed to enable Jackson to settle 13 outstanding lawsuits and still have roughly $11 million on hand for creative ventures. The other loans against Sony/ATV and MiJac were both structured so that Jackson was unable to access any of the money -- dividends and profits went directly toward debt payments. And additional money was raised to have "interest reserves" that would make interest payments when Jackson couldn't. Frank DiLeo, Jackson's manager during his heyday, still can't believe the star let it all pile up. "I want to wake him up and slap him," he says.
Jackson was still, according to two people who advised him, running a deficit of $10 million to $15 million a year beyond a similar amount that he would bring in from royalties and new ventures like a special 25th anniversary "Thriller" album released last year.
Not counting financing charges, last year Jackson's personal expenses were around $8 million, says an adviser who reviewed his books -- counting everything from rent and Neverland upkeep to security, child care, and tutoring Jackson was receiving for moviemaking.
Fortress had held onto the mortgage on Neverland, and in early 2008 -- to the surprise of Bain and some of Jackson's other former advisers -- reports emerged that Neverland was going to be sold in a foreclosure auction, only to be "saved" for Jackson by Colony Capital.
By then Bain was out of the picture after Jackson had changed his phone numbers, which he did frequently. This time he didn't give her the new ones. Several months before he died, Bain filed a $44 million lawsuit against Jackson for, you guessed it, unpaid services.
"This is the saddest story in history," says Tohme Tohme, the man who succeeded Bain. "I had no purpose except to help him, to bring Michael Jackson back and make him the King of Pop. One consolation for me: I did it. He died the King."
In the days following Jackson's death, Tohme was portrayed in media reports as a mysterious if not sinister figure -- a portrait he feels besmirched him. A longtime Los Angeleno of Lebanese heritage and habitué of the Bel Air Hotel, Tohme comes from outside the entertainment business but declines to say what businesses he is in.
"If you are writing about Linda Lovelace, you don't need to know about John Holmes," he laughs, making an unexpected reference to 1970s porn stars.
Say what you will, Tohme was able to get Jackson working again. Tohme says that he has known the Jackson family for years, and that Jermaine asked Tohme to help his brother out in early 2008 when Neverland faced foreclosure.
Tohme had done some work with Colony Capital, which has done $39 billion worth of transactions since 1991 and owns 9% of French retailer Carrefour. Tohme persuaded Colony's Barrack to meet with Michael in Las Vegas at the rented stucco compound where the King of Pop and his kids were living. Colony owns the Vegas Hilton, and Barrack had played a role in resuscitating the career of Barry Manilow via a five-year run of shows there.
Barrack also has a ranch near Neverland, and he expressed interest in both Neverland and some kind of permanent Vegas show based on Jackson's music. He in turn spoke to Phil Anschutz, the owner of AEG (it stands for Anschutz Entertainment Group), which led to a meeting between Anschutz and Jackson at the MGM Grand late last year. Jackson was "very laser focused," says AEG Live's Phillips, who also attended. "He wanted to meet the guy who owned the company."
AEG and Tohme subsequently hashed out Jackson's deal for what eventually became 50 shows. Among its terms: Jackson would get 90% of all profits, and AEG would advance some $15 million toward the purchase of a palatial house that had been built by Prince Jefri of Brunei in Las Vegas, which had been listed for more than $100 million and which Jackson envisioned as his new Neverland.
But first AEG had to pay $5 million to Sheikh Abdulla to finally settle his dispute with Jackson (a figure that hasn't previously been disclosed). Tohme worked on other deals on Jackson's behalf, including one for a "Thriller"-based show on Broadway, TV specials, a film, and even a casino.
But several weeks before his death, there was fresh unrest in Jackson's world. Tohme was on the outs after Jackson was upset by the way he managed an auction of truckloads of his eclectic personal possessions this past April.
Jackson was apparently horrified to see the catalogue on the Internet, and the auction ended up being stopped after Jackson sued. (Tohme denies ever receiving a letter from Jackson dismissing him and says he hasn't been paid for the work he did for the singer.)
Around that time, Jackson brought back his old manager DiLeo, who in turn helped bring back John Branca, who had been Jackson's lawyer for the better part of three decades and helped him buy ATV, but with whom the singer had a sometimes strained relationship. Branca, who declined to be interviewed, has said that he last stopped working for Jackson in 2006 because he didn't like the people Jackson was surrounding himself with.
Some in the Jackson orbit, including his father, Joe (with whom Michael had long-standing and very public differences), have contended that Michael was manipulated by people without his son's best interests in mind and hint at nefarious forces behind his demise.
Both the rented $100,000-a-month Bel Air mansion where Jackson fell ill and a doctor who lived with him -- who was to be paid $150,000 a month -- were being funded by AEG. Phillips, the president of AEG Live, says he objected to having the doctor, but Michael Jackson insisted, saying that his body was their venture's most important asset.
"It's easy to make us look like the corporate villains who took advantage of Michael Jackson," Phillips told me one day in his office near Los Angeles' Staples Center, which AEG owns and where Jackson held those final rehearsals. "It's quite the opposite -- we were the people who empowered Michael Jackson and gave him his dream back."
AEG, despite having invested close to $30 million in Jackson's unrealized dream, will make money on its involvement with the estate, thanks largely to the rehearsal footage that was shot and the swiftness with which AEG and Jackson's executors formulated a plan to salvage a calamitous situation.
Sony paid what one company insider called an unprecedented $60 million to Jackson and AEG for the rights to release "This Is It" -- a price justified in part by the fact that the film deal precluded, for now, a televised tribute concert recreating Jackson's fateful stage show, which AEG has explored.
The movie is slated for a limited, two-week run. But where his estate is concerned, the Michael Jackson show is only just underway.
New creditor claims are being filed on a weekly basis, and yet to be resolved is whether Jackson's family can get along with the executors who were named in Jackson's 2002 will: Branca and music industry veteran John McClain.
Katherine Jackson's attorneys have accused the executors of conflicts of interest (their precise objections are sealed from public view) while criticizing aspects of the deals they struck with Sony and AEG.
The probate judge, Mitchell Beckloff, recently took the unusual step of granting Katherine the ability to challenge the executors without jeopardizing her inheritance, and both sides' lawyers have been trying to work out a compromise that would avoid a trial.
Estate lawyers know that high-profile celebrity cases can drag on for years, the most extreme example being Marilyn Monroe's probate, which lasted more than three decades.
Jackson's cultural resurgence will certainly continue to brighten the estate's financial situation, but more challenges are on the horizon. Next year, insiders say, the estate's groaning debts will need to be refinanced yet again.
Down the road, MiJac may be merged into Sony/ATV, which has thrived over the past couple of years. Or the estate may eventually decide that it wants to sell Jackson's musical jewels to the highest bidder to finally settle all the singer's debts and lawsuits. One day, in Las Vegas or elsewhere, fans may visit a new Neverland.
Creatively, Jackson's legacy in the pantheon of musical superstars is already secure. But when it comes to the big financial questions, it's a good bet that Jackson's executors will not be asking themselves, "What would Michael do?"
Reporter associates Marilyn Adamo and Kim Thai To top of page
First Published: October 23, 2009: 4:26 AM ET
Jackson Inc.
The King of Pop, by the numbers
700 million Total albums sold to date
16 million Albums/songs sold since his death
200 million Estimated box office for "This Is It"
1 billion People worldwide estimated to have watched Jackson's memorial
435,000,000 Debts
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yeah I realize that <!-- s:D -->:D<!-- s:D -->
<!-- s8-) -->8-)<!-- s8-) -->
JUST KIDDING!! <!-- s
And how do we know there are old songs that have never been released? We hear it from the media. What if, there are no old songs that haven't been released, but in reality, *NEW* songs that he is coming up with right now, after his publicized death. Just a thought ...
And wasn't the computer that supposedly stored these old songs confiscated? Wasn't it thought that LaToya got it at first, but then she denied it.
Well, I believe he's alive, as I know a lot of you all do, otherwise, why are we on this board, no? <!-- s:) -->:)<!-- s:) -->
Hello friends miss you!
I'll be honest, I have not read the 8 pages, but the last comment Deepu Pryanka, spoke little but all I think.
For me Michael is very much alive, and this is a great test.
Last night on a news program here in Rio de Janeiro, they reported this major contract, soon after on another channel the journalist reported this:
Family of Jackson signs the largest contract in history!
I thought: How so? Children can not sign anything, the family does not have any commitment to anything, who did it?
Lawyers, ok, but with orders? He had left it in the will? From what was reported the document was nothing authorizing the Sony and lawyers to create a contract of this magnitude.
Friends, this only confirms my theory.
Michael was behind everything, he sees everything, he knows everything, and manipulating, calling the shots in everything and everyone.
My fear is, that if he comes back, things can turn against him if there's one thing we can do is play with human feelings, you'll forgive me but this joke has gone too far.
I do not like, do not agree, I prefer the all clear, as it depends on me, no cd be bought, that he pay his debts, the clear so we can see,
This is the right attitude and just as it should be.
None of us deserve to pass and pay for it.
Again excuse the frankness. <!-- s:( -->:(<!-- s:( -->
I was talking to my aunt about this (she is MJ age) last week about MJ could still be alive... at first she was like no... then she thought about it, and was like you know what? Michael Jackson would do something like fake his death with his wild imagination LOL she laughed about it... I expect anything from Mr. Entertainment lol
On here however it says the first batch is expected by November. So do you think Michael may not come back this year now because of this?
<!-- m -->http://www.reuters.com/article/idUSN162 ... arketsNews<!-- m -->
You are so welcome, Jill. I hope that the article was helpful to you. I never heard of that lawyer before. God bless you, Jill. Thank you for being here with us on this great adventure! <!-- s:) -->:)<!-- s:) -->
It was in Sony's best interest that they refinanced for him. They didn't do it for Michael. They did it for themselves. If he had gone into bankruptcy or default or whatever, his share of the catalogue would of been up for grabs and there would not be any shortage of buyers. Sony want the rest of the catalogue and keeping it with Michael would give them more a chance.
Again, this new contract is a win-win situation for Sony.
Michael Jackson Estate's record deal raises questions
The Probate Lawyer Blog featured this article about the Michael Jackson Estate several weeks ago, posing the question of whether it is ethical for estate executors to seek a 10% fee for certain business deals they reach for such a high-profile estate. It's especially problematic when you factor in that one of the executors was Michael Jackson's attorney.
Well, this attorney, John Branca, and his co-executor, John McClain (a music executive), just hit the mother-load. It was widely reported yesterday that they brokered a deal worth up to $250 million dollars (that's right -- one quarter of a billion dollars!). What was the deal for? Sony announced a seven-year distribution agreement for unreleased music recorded by the late King of Pop (as well as related video footage).
Yes that means that Branca and McClain earned $12.5 million each for one deal.
Why do we question this? For several reasons, actually. First, it's the job of executors to bring in as much money as possible for an estate that has earning potential like this estate has. They shouldn't need a 10% incentive to do the job they're required by law to do.
Second, Branca, reportedly, is the attorney who prepared the will and trust that named him as the co-executor and co-trustee. Because of these documents that he created, he just made $12.5 million -- in addition to the other fees he's already earned (and will continue to earn).
Would it be ethical for an attorney to create a will for a client to sign that leaves $12.5 million to that attorney as a direct beneficiary? In most cases, no, it wouldn't. So why is this attorney allowed to earn that much as an executor fee?
Finally, there's the issue which we discuss in our book, "Trial & Heirs: Famous Fortune Fights!", that Michael Jackson's Trust wasn't funded properly. If it had been, then his estate would have been kept out of court and handled in private. It's also entirely possible that his trust document (which hasn't been released to the public) may have specified what compensation the trustees would have received.
IF that's the case (just speculating here), then Branca and McClain wouldn't necessarily have been able to receive this percentage fee. But, because Jackson's Trust wasn't properly funded, thereby requiring it to pass through the probate court process, it opened the door to allow this type of fee to be approved by the judge (again, if the trust document addressed their compensation, which isn't unusual). And the judge did approve the executors' 10% fee in this case.
A properly-used estate plan would have bypassed court entirely. Jackson's estate plan didn't do that. The attorney who prepared that estate plan now just earned tens of millions of dollars because of that estate plan.
And it's all legal. But is it ethical?
Some feel it is. After all, Branca is a respected entertainment lawyer and McClain is an experienced music executive. They have the expertise to broker deals like this. And clearly, judging by the amount of money they've brought into the estate, they're good at what they do. And Michael Jackson's heirs are benefiting from their expertise.
If it's standard to compensate entertainment industry experts with this type of fee, why shouldn't Branca and McClain earn what may be considered fair compensation in that line of business?
There is some merit to this position. After all, Michael's mother, Katherine Jackson, spent months battling McClain and Branca in court over this estate (until she hired a new attorney, at which time she changed her position). Yet she didn't object to their 10% fee. If a primary beneficiary of Michael's estate didn't object to this generous fee, why should anyone else?
What do you think?
Posted by: Andrew W. Mayoras & Danielle B. Mayoras, co-authors of Trial & Heirs: Famous Fortune Fights! and co-founders of The Center for Probate Litigation and The Center for Elder Law in metro-Detroit, Michigan, which concentrate in probate litigation, estate planning, and elder law. Andrew & Danielle are husband and wife attorneys, professional speakers and consultants across the country.[/b]
Los Angeles
2009 July 3 /PRNewswire/ -- Mina Sirkin, an expert Trust and Estates attorney in Los Angeles says, "I have seen a lot of wills in my career, but the copy of Michael Jackson's will filed with the court leaves me with way too many questions as a trust and estates lawyer!"
While some believe everything they see filed in the courts as true, sometimes, you just have to ask questions about those documents.
In Michael Jackson's case, the copy of Michael's signature on the will (copy) doesn't look like the copy of Michael's signature on the birth certificate of his son Michael Joseph Jackson, Jr., also known as Prince Michael Jackson. Some people may say, it's just the size of the signature because it is in a small box, but look closer ...
See the Will and signature of Michael Jackson on the copy of the will filed with the court here:
Michael Jackson Will Copy (<!-- m -->http://lawmarketingsystems.typepad.com/<!-- m --> ... py2002.pdf)
See Birth Certificate Picture here: Copy of Birth Certificate of Michael Joseph Jackson, Jr. (<!-- m -->http://lawmarketingsystems.typepad.com/<!-- m --> ... icates.pdf)
I'm not a document examiner, but I'm sure if the original actually turns up, that there will be dozens of forensic document examiners looking at the original signatures on all documents Michael may have signed around 2002.
Now, looking at all the other flaws, I noticed that the press version of the copy of the will redacted all the names and addresses of the witnesses, but my pre-press copy has the names of all the witnesses.
Two of the three witnesses are John McLain and Barry Siegel. Barry Siegel, a CPA who ran the Provident Financial Management, appears to have declined to act as a co-executor. But the letter attached to the petition which looks like a declination is not current. It is dated in 2003. This is unusual in that in most cases where a nominated executor declines to serve as executor, he or she will usually sign a declination after the death of the testator. This might infer some incident which caused Siegel to refuse the duty of executor between July, 2002 and August, 2003.
Need I say that even the copy of the signature of Barry Siegel on the alleged declination letter dated 2003 doesn't look like the copy of the Barry Siegel signature on the witness area dated 2002! Why on earth would the declination referred to in the August 26, 2003 letter not be an actual attachment to the petition? Who would think of that one?
The addresses of John McClain, and Barry Siegel are both redacted. The signature of the third witness is not legible. In California, witnesses are needed to authenticate a typed will. My guess is that Mr. McLain and Mr. Siegel, in the words of Desi Arnaz, "will have some esplaining to do... !"
"When they say, why, why, tell em' that it's human nature..." -- Michael Jackson
Mina Sirkin is a Family Trust Lawyer in Los Angeles, California. She was the expert on the Anna Nicole Smith case for CBS/KCAL9, Britney Spears Conservatorship and is currently the expert to CNN and Inside Edition (CBS). <!-- m -->http://SirkinLaw.com<!-- m -->. 818-340-4479. Press and Media Contact only: <!-- e --><a href="mailto:SirkinMediaContact@gmail.com">SirkinMediaContact@gmail.com</a><!-- e --> or Karen Reyes for interview scheduling: 818-340-4479 and 818-438-7170.
SOURCE Sirkin & Sirkin
These conflicts were utilized by the entertainer to leverage an early exit to his contract. Just before the release of Invincible, Jackson informed the head of Sony Music Entertainment, Tommy Mottola, that he was leaving Sony. As a result, all singles releases, video shootings and promotions concerning the Invincible album were canceled. In spite of the uproar preceding its release,”
BELOW IS REGARDING COURT TRANSCRIPT INFO IN 2005 TRAIL
Branca was an attorney in Los Angeles doing music work for Michael.
Branca was a partner at the Ziffren law firm in LA. That firm also represented Sony.
Sony paid money into the offshore account for Branca with the intent for Branca to sell out Michael.
Bear in mind that in this time period, Michael was in conference talks with Sony concerning both of their interests in the catalog.
Michael cleaned house so to speak, firing Branca and other associates. He also had Branca and a few other investigated.
Snippet below is from the 2005 court transcripts:-
Here is one question put to LeGrand by Mr Mesereau during the 2005 trial
Q: Was it your belief when you started this investigation that Al Malnik, Tommy Motolla, John Branca and people at Sony were trying to find a way to get Mr Jacksons interest in that Music Catalog.
A: I'm not sure that I would include Al Malnic in that group, but certainly was concerned that Branca and Motolla in particular, had set the stage so to speak, for Sony to be able to obtain Michaels interest in the Sony/ATV joint venture.
statements to the court. They have concealed material
information from the court. They have conducted themselves
in a fraudulent deceptive manner where their veracity can
no longer be trusted.
Furthermore Michael Jackson terminated John Branca in writing
as his attorney on February 3 2003 (Exhibit
to resign from all positions in his personal and business life. However,
unknown to Michael Jackson, Branca failed to follow his instructions
regarding any purported will.
Nevertheless, Branca remains obligated to comply with those
instructions and resign as Executor.
On February 3, 2003 Michael Jackson instructed Branca to turn
over to his new attorneys all records, files and papers dealing
with the personal and Business life. While Branca turned over
his other files Branca secretly refused to turn over the purported
July 7. 2002 Will and March 2002 Trust.
In violation of his fiduciary duties, Branca concealed the purported
will and concealed his refusal to resign. Branca's secret concealment
of the purported Will and failure to resign continued for six (6) years
despite Michael Jackson numerous demands Branca turn over all
documents and resign from all positions.
It wasn't until July 1, 2009, that Branca produced the previously
concealed Will which he had intentionally concealed for six (6) years.
The courts should not permit this unethical violation.
Michael Jackson Terminated Branca because of Embezzlement.
In 2003, Michael Jackson launched an investigation into Branca
embezzlement activities regarding Michael Jacksons money.
The investigators, the firm of INTERFOR in New York, reported
in February , March with a final report on April 15, 2003 there
was an improper relationship between Sony Executive Tommy
Mottola and John Branca whereby Branca and Motolla were
illegally funneling Michael Jackson's money to off shore accounts
in the Caribbean. (Exhibit C)
INTERFOR REPORT: The Interfor Report caused Michael
Jackson great anger and Michael Jackson demanded Branca
never have anything to do with him his business his family
or his personal life again.
JOHN BRANCA IS THE PERSON TO WATCH!
MJ fired Branca February 3, 2003 and the Bashir documentary aired in the UK that same day. It was aired February 6th in the US and a school official filed a complaint on behalf of Gavin Arvazio after watching the show. Janet Arvazio was interviewed by Dept of Child & Family Services on February 20th as a result. February was a very high voltage month as this stuff started to unravel.
The timing stinks and makes me think that Branca was moving the "take MJ down" plans to the next level. What many people fail to realize is that when someone is motivated by greed or revenge they don't care about their history/past relationship with someone. It may even be because of their personal knowledge of their target that they are better equipped to aim below the belt and aim hard. Sure ..at one time ..Branca and MJ were friends. That was before MJ discovered that Branca was screwing him over. To paraphrase a line from The Godfather...It's not personal...it's business.
Does anyone else find it weird that there were just a few people managing MJs affairs. C'mon no one is a jacks of all trades. Why did MJ have one or possibly two people managing such a vast business empire? That in itself leaves too much power and control in the hands of just a few people. If more people were involved and delegated to handle certain aspects of business then there would have been more checks and balances across the board.
Mo and I have been discussing Branca many times. I get you, but the thing that is bugging me and that I don't get, is why should Branca be able to be an executor of the estate while th will is false? Why is no one fighting the will if Branca is in the bad camp? Why is Branca working for 'only' 10%? I hope you get what I mean. It confuses the hell out of me. And still there is a little voice in my head saying this deal is not that bad.... "They never thought I would out think them". Branca screwed Mike, Sony screwed Mike, Sony trusts Branca because he screwed Mike... But on who's side is he? There is a very good chance Sony is screwed and if that is the case, Branca has to be on Mike's side.
"For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places."