Nseabong Okong-Ekong
4 July 2009
analysis
Lagos — Suddenly, everyone has realised that Michael Jackson can not die! In fact his transition has generated goodwill, far better than when he was living. Michael has taken on a whole brand new life in death. Anything connected to Michael is a hot cake now. Regrettably, Michael will not be a direct beneficiary of any of these gains. Of what use is all the monies of the world to a dead man?
The good feeling, however, will live with members of his family and his die-hard fans who will be re-assured to know that their idol did not depart this world with the encumbrance of debt. Actually, Michael's planned 50-series last dance in London was meant, in part, to cancel out his huge debt. Although the entire concert had sold out, the income from it would only have met some of his financial obligations. And there is nothing to say that Michael would not resumed his extravagant lifestyle, therefore cancelling out the gains accruing from the concert. There is a good chance that he would have been forced to eat his word about the July 13 London concert series being his last. Like the legendary boxer, Mohammed Ali, he would have been forced to come out of retirement several times for pecuniary reasons. The world would never know how Michael would have overcome his financial crises or whether he would have gone down the fast lane into bankruptcy. The likelihood of a Michael Jackson distancing himself from trouble and controversies was remote; which means he would have continued to incur huge debts in litigation and out-of-court settlements.
Everything Michael had is held down in a trust to be administered by his mother. A court has already given temporary power to carry out this function according to the late King of Pop's Will which was made seven years ago. Of course, there is expected to be an avalanche of demands to seek legal interpretation or intervention to push the will one way or the other. There will be genuine requests and ones that are outright ridiculous. Some cranks will see this as their claim to fame; as every opportunity to take a pot shot at Michael will be celebrated in the news.
NSEOBONG OKON-EKONG uses agency reports to analyse Michael Jackson's business sense and concludes that the King of Pop had become a financial institution that birthed a few dreams, while killing many hopes.
In death as in live, Michael Jackson remains a monumental tower of wealth, not only to his personal credit but also to scores of persons whose nest were feathered by riding on his back. The late King of Pop's net worth was reportedly put at nearly USD300 million as of March 31, 2007. Documents stating this claim were obtained by The Associated Press. Already, Jackson's financial empire has become the focus of a legal battle between the singer's family and creditors. Jackson had $702.91 million in assets, including his Neverland Ranch, his share of the Sony/ATV Music Publishing catalogue that includes the rights to songs by the Beatles, and an assortment of cars, antiques and collectibles, according to a statement of financial condition prepared by Washington-based accounting firm Thompson, Cobb, Bazilio Associates. The five-page report says Jackson had debts of $409.91 million, leaving him with a net worth of $236.6 million. Highlighting his shaky financial health, the singer known for his lavish shopping sprees had just $668,215 in cash, according to the report, which is dated June 12, 2007. The report says the accounting of Jackson's finances is 'based on information produced by his advisers'. It paints a picture of Jackson's tangled finances and the mountain of debt he left behind. The report values Jackson's 50 per cent stake in the Sony/ATV Music Publishing catalogue - his most prized assets - at $483.72 million. Another of Jackson's prized possessions, his Neverland Ranch, is valued at $40.87 million, according to the report.
It says Jackson took out a $28.48 million loan against the 1,011 property in the rolling hills of Santa Barbara County.
He also had $24.77 million worth of cars, antiques, collectibles and other property.
Another source of income that Michael Jackson may never have bargained for in his lifetime is sales grossed from his return to the top of the Billboard charts.
Billboard says albums by the pop singer who died suddenly penultimate Thursday at the age of 50 will occupy nine of the top 10 spots on the Top Pop Catalogue Album chart released last Wednesday. Jackson's album Number Ones was No.1 on sales of 108,000 copies during the week which ended on June 28 followed by The Essential Michael Jackson and Thriller on sales of 102,000 and 101,000 respectively.
Billboard, in an article on Billboard.com, said that, Number Ones was the only Jackson title on the chart. It was at No.20 on sales of 4,000 copies.
Billboard said Jackson's 1979 Off the Wall was at No.4 on sales of 33,000 copies followed by Bad on sales of 17,000.
The Jackson 5's The Ultimate Collection was fifth on sales of 18,000 copies followed by Dangerous, Greatest Hits: History - Volume 1 and The Ultimate Collection.
Billboard said the only non-Jackson-related album in the top 10 was a re-issue of the soundtrack from the movie Woodstock, which was at No.10 on sale of 8,000 copies.
Billboard said Jackson's solo albums sold 415,000 copies this past week compared with sales of just 10,000 copies in the week that ended June 21.
It said Jackson's catalogue had sold only 297,000 copies the entire year through June 21.
Billboard noted that sales of the top three selling Jackson albums were higher during the week than that of the best-selling album on the Billboard 200 charts, The E.N.D. by the Black Eyed Peas, which sold 88,000 copies.
Billboard also said there were 2.6 million digital downloads of songs by Jackson and the Jackson 5 during the week, up from the previous week's 48,000.
Like is won't to happen when a big tree falls, Michael's death has not only affected his immediately family, but many who had their businesses tied to him are also counting their losses. Undoubtedly, one of the biggest losers is the promoter for the cancelled Michael Jackson concerts, Mr. Randy Phillips says insurance will cover some of the financial losses.
The insurance only applies if the star died accidentally, such as through a drug overdose, but not if he died of natural causes.
Promoter AEG took out an $18 million insurance policy, although that would still fall short of the $25 to $30 million the company spent in advance, which included covering some of Jackson's debts, staff and rent.
In an uncanny twist of fate, Michael Jackson's planned concert series in London which was supposed to clear some of the singer's debt and launch a comeback has become an albatross to his family and business associates.
The pop icon's fans can get full refunds for the cancelled 50-night concert extravaganza - or opt to receive souvenir tickets.
In a move that could help recoup some of its losses from the ill-fated tour, Los Angeles-based AEG Live said fans could choose to receive the actual tickets, which it said feature graphics 'inspired and designed' by Jackson himself. Fans have until August 14 to take the ticket offer.
For those opting for a refund, all service charges paid to authorised ticket sellers will be included, the statement said.
Fans spent more than $US90 million on tickets, which were priced between $US82 and $US124, though some went for hundreds of dollars on Internet auction sites.
AEG Live may be counting on diehard fans to want to hold onto their tickets as bittersweet reminders of what might have been - or to cash in later should they become collector's items. Many did just that after Elvis Presley died in 1977.
Jackson's death has left AEG Live, which operates the 02 Arena where the pop star was to have performed, with a colossal problem.
In addition to the money taken in by ticket sales, which must be refunded, the company had already paid Jackson millions and spent millions more getting ready for the planned July 13 premiere - not to mention that one of the city's biggest arenas has been left with 50 open nights.
The skirmishing over refunds and open bookings is just one aspect of what is likely to be years of legal wrangling over financial matters, including Jackson's considerable debts, assets and custody of his three children. The battles are likely to dwarf earlier fights for the control of assets left by other departed rock gods, including guitar hero Jimi Hendrix and reggae trailblazer Bob Marley.
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