Michael Jackson's wealth soars after death

    Michael Jackson's wealth soars after death



    Michael Jackson's estate has generated at least US$1 billion ($1.4 billion) in revenues since the singer died a year ago, thanks in part to a lucrative new record deal with Sony Music and the most successful concert film of all time, according to Billboard estimates.


    Jackson's finances were reportedly in disarray before his death, with his outgoings exceeding his income by an estimated US$20 million to US$30 million a year.


    Through interviews with industry experts and some number-crunching, Billboard examines the various music-based revenue streams flowing into the estate.


    MUSIC SALES - VALUE: US$429 MILLION


    Since his death on June 25 last year, Jackson has sold about 9 million albums in the United States, while the Jackson 5 and the Jacksons have sold about 800,000 units, according to Nielsen SoundScan. Outside the States, Jackson's album sales for the past year stand at around 24 million units.


    Based on a blended worldwide retail sales price of US$11.62 (US$12.30 per unit less mechanical royalties), Billboard estimates that Jackson's album catalogue generated about US$383 million in sales.


    On the digital side, Jackson's songs have generated 12.9 million track downloads in the United States in the past 12 months, according to SoundScan. Based on those figures, Billboard estimates that the total number of worldwide downloads is about 26.5 million units, with a value of US$34 million (net of mechanical royalties).


    Jackson's ringtone sales totaled 1.5 million last year in the States, with the bulk coming after his death. Digital ringtones sales worldwide are about twice that stateside, which brings Jackson's global ringtone tally to 3 million. At US$2 per unit, ringtone revenue was about US$5 million last year (net of mechanical royalties).


    Monies generated from subscription services and digital performance royalties typically amount to about one-third that of mobile revenue, so Jackson's catalogue probably generated about US$2 million from those streams.


    U.S. digital performance royalties represent about 13 percent of the revenue generated by single track downloads. Applying that rate to global track sales, Jackson's recording catalogue generated another US$4.5 million from global digital performances.


    FILM/TV - VALUE: US$392 MILLION


    Sony Pictures bought Jackson's rehearsal footage from AEG for US$60 million. In retrospect, the price was something of a bargain. "Michael Jackson: This Is It" was released October 28, 2009, and earned US$72 million at the U.S. box office, according to BoxOfficeMojo.com, making it the highest-grossing concert film in history.


    Ad Feedback Overseas, the film earned US$188 million at the box office; of that, US$56 million was tallied in Japan alone. After AEG recouped the company's investment of more than US$35 million in the canceled shows at London's O2 and the film, the bulk of the theatrical take - court documents indicate it could be as high as 90 percent - went to Jackson's estate.


    On the home video front, the "This Is It" DVD has earned US$43 million in U.S. sales, with 2.7 million units sold since its January 26 release, according to The-Numbers.com, a division of Nash Information Services. Nash estimates the film made another US$25 million in rental revenue.


    In Japan - where the film was also sold as part of a special "This Is It" bundle for the PlayStation 3 -- DVD sales topped US$18 million on its first day of release; 351,000 Blu-ray copies have been sold, according to rankings service Oricon, adding about US$7 million to the total.


    In terms of TV, the industry standard is that exclusive rights for ad-supported TV costs 12 percent of the domestic box office for a four-year window; this rule of thumb is in flux, however, as the length of exclusive windows extend and the number of outlets involved in the deals increase.


    In November 2009, Viacom purchased the exclusive U.S. TV rights to air "This Is It" on its MTV and BET family of networks - including VH1 and Palladia, as well as MTV and BET - for six years. Given the additional years in the contract and the film's box-office tally, the deal could be worth upwards of US$15 million. (By contrast, FX is reported to have paid between US$25 million and US$30 million for just the U.S. commercial TV rights to "Avatar.")


    With its family-friendly rating, "This Is It" can be shown in all distribution media outside of traditional theaters, including airplanes, cruise ships and hotel chains. Licensing fees for nontheatrical performances vary based on the movie and its potential reach and how long it will air after it debuts in theaters, but it's generally forecast to be about 7 percent of total revenue for a film. For "This Is It," that puts the number at US$24 million.


    MUSIC PUBLISHING - VALUE: US$130 MILLION


    Jackson's music publishing company, Mijac, is administered by Warner/Chappell. Based on a reported value for Mijac of at least US$75 million in 2005, Billboard estimates Mijac currently has a value of around US$150 million. At that value, it generates about US$25 million per year in revenue. In the last 12 months, according to sources, that number could have doubled to as much as US$50 million.


    Jackson also owns half of Sony/ATV, formed in 1995 when Sony paid Jackson US$90 million for 50 percent of ATV Music Publishing. Barry Massarsky of Massarsky Consulting says that Sony/ATV is comparable to BMG Music Publishing two years ago when Universal Music Group acquired it for US$2 billion. Massarsky estimates Sony/ATV is worth about 80 percent of BMG at the time of acquisition, or US$1.6 billion. Jackson's share is half that, or US$800 million. Based on a multiple of eight to 10 times net publisher's share, Jackson's share of the company's revenue is US$80 million per year.


    LICENSING/TOURING - VALUE: US$35 MILLION


    Despite being canceled, the 50-show This Is It tour at London's O2 paid big dividends. Revenue from tickets retained by fans as souvenirs and not refunded brought in an estimated US$6.5 million, and Bravado's This Is It concert merchandise brought in US$5 million, both less AEG's share.


    An AEG-produced Jackson memorabilia exhibit is showing in Japan and has brought in another estimated US$3.5 million to the estate. Plans call for the exhibit to head to China.


    Last August, Bravado followed its AEG/This Is It merch deal with a new pact with the Jackson estate that included a US$10 million advance, sources say.


    Based on conversations with insiders, Billboard estimates licensing royalties and retail sales accounted for another US$10 million in revenue to the Jackson estate. Actual retail sales were far greater.


    This week, gaming company Ubisoft announced it will release a dance-oriented Jackson videogame in time for the holiday season. Licensing fees weren't disclosed.


    Finally, sources say there wasn't any advance on royalties and no guarantees paid for the estate's two-pronged deal with Cirque du Soleil for a tour and a Las Vegas residency, a deal structure in line with past Cirque tributes to the Beatles and Elvis Presley. After startup costs are shared by the estate and Cirque, revenue will come from box-office receipts and other ancillaries associated with the projects.


    The financial tragedy here is what might have been. Billboard reported before Jackson's death that the O2 shows would gross up to US$100 million and merch possibly another US$15 million. Beyond that, AEG had a 36-month global touring plan in place with Jackson had the run successfully been completed.


    RECORDING CONTRACT - VALUE: US$31 MILLION


    In March, Sony Music Entertainment reached a deal with Jackson's estate to release 10 albums of the singer's music through 2017. The albums' content will vary -- a collection of previously unreleased tracks is expected in November and a reissue of 1979's "Off the Wall" is expected next year. All told, the estate is guaranteed between US$200 million and US$250 million for the deal. Some of that amount was likely paid in an advance. No albums have yet been released, however. If just one of the contract's eight years is recognised, that would add US$31 million to the money the estate received in the last 12 months.


    At the time of the deal, John Branca, who serves as special administrator for the estate alongside John McClain, said that Elvis is the model for Jackson's legacy. "To this day, there's interest in Elvis," he said. "And I think there will be enduring interest in Michael. It's our job to continue to expose Michael to new generations."





    Michael Jackson's wealth soars after death | Stuff.co.nz

    Geld über Geld.. die Kinder werden wohl ein gutes, sorgloses Leben führen können, sofern sie nicht irgendwann in große Dekadenz verfallen sollten.


    Hoffentlich sorgen die Kinder später mal dafür, dass ein guter Teil der Einnahmen in eine Stiftung zum Wohle der Kinder dieser Welt fliesst. Da könnte man einige tolle Projekte unterstützen. :top

    Jackson Estate Steers to Next Crisis


    Nearly a year after Michael Jackson's death, the managers overseeing his estate have stabilized its precarious financial situation, but at least one major liability still looms: a $300 million loan due at the end of this year.


    Thanks to the surge of fan interest sparked by Mr. Jackson's death, the singer generated an estimated $200 million posthumously, allowing the estate to pay off tens of millions of dollars in debt and avert foreclosure on the suburban Los Angeles complex where the singer's mother lives.


    Since Mr. Jackson's death last June 25, his businesses have been run by the singer's longtime lawyer, John Branca, and a music-industry veteran and personal friend of Mr. Jackson's named John McClain. Unlike traditional executors, Messrs. Branca and McClain are aggressively managing Mr. Jackson's affairs as a going concern. The estate's primary beneficiaries are Mr. Jackson's three young children and his 80-year-old mother, Katherine, who is now the children's guardian.


    Meanwhile, Mr. Jackson's absence from the equation has eliminated the chaos and out-of-control spending that reigned during his life.


    Using income from past music sales and advances against future ones, music-publishing royalties, a film-rights sale and various other licensing deals, the estate has paid off nearly $200 million of the $500 million debt the singer had used to fund his extravagant spending in his final years.


    The estate has collected as much as $125 million in royalties and advances from Sony Corp.'s Sony Music, which has sold 31.5 million Jackson albums since his death and plans to distribute an album of previously unreleased music around November. Corporate sibling Sony Pictures paid another $60 million for the rights to "This Is It," the documentary about rehearsals for Mr. Jackson's planned comeback concert series.


    Mijac, the publishing company that controls the copyrights to songs written by Mr. Jackson, is on track to generate $35 million in royalties. The estate is set to collect $11 million in dividends from Sony/ATV Music Publishing, the joint venture with Sony Corp. that controls 251 songs by the Beatles. Television and merchandise deals could generate another $10 million, while deals to create a videogame and two Cirque du Soleil shows based on Mr. Jackson's music are set to provide additional revenue later this year. The Sony Music deal guarantees Mr. Jackson's estate significant additional cash advances in coming years, too.


    However, Mr. Jackson's biggest financial obligation remains unresolved. A $300 million loan from Barclays PLC, backed by his 50% stake in SONY/ATV, matures at the end of the year. To secure the loan in 2006, Mr. Jackson appealed for help from Sony, which dispatched two executives to meet him in Dubai and negotiate terms under which it would guarantee the loan.


    At the time, Mr. Jackson was in danger of defaulting on a $270 million loan held by hedge fund Fortress Investment Group LLC. As part of the agreement under which Barclays ultimately refinanced that debt, Mr. Jackson granted Sony an option to buy half of his stake in the company at any time for a fixed price of $250 million. At the time that was a generous valuation, but Sony/ATV's value has since soared to around $2 billion.


    The Jackson estate and Sony have held talks about whether the company will again guarantee a refinancing of the debt backed by Mr. Jackson's Sony/ATV stake. If it won't, the estate could be forced to sell its stake in Sony/ATV at a steep discount, though that would still generate enough cash to wipe out the Barclays loan with hundreds of millions to spare. But Sony may have an incentive to reach a deal on refinancing, because buying out Mr. Jackson's estate would require it to pay hundreds of millions of dollars for an asset it already effectively controls.


    All of this stands in stark contrast to the state of affairs when Mr. Jackson died. Despite being poised for what was heralded as a major comeback concert series, his finances were in shambles and he was unable to meet some of his most basic financial obligations.


    Among the unpaid bills at the time of his death, Mr. Jackson had not paid $341,000 to Thomas Mesereau, the lawyer who successfully defended him against charges of child molestation in 2005. That bill and many other creditors' claims, including invoices from several other law firms, have now been paid.


    The singer was also months behind on utility bills for his longtime family home in Encino, Calif., where his mother, Katherine, now lives with his three children, along with the children of two of his brothers. The Los Angeles Department of Water and Power, owed nearly $9,000, was threatening to disconnect service. AT&T Inc. was owed $1,300.


    More troubling, Mr. Jackson had fallen behind on the payments for a $5 million IndyMac loan secured by the house. The property was scheduled to enter foreclosure the day after Mr. Jackson died. A nearby condominium, four months behind on loan payments and homeowners' dues, was also threatened with foreclosure, according to people familiar with the matter. Mr. Jackson's representatives have now paid off those loans.


    Mr. Jackson was living in a rented mansion in Holmby Hills, a ritzy neighborhood near Bel Air, covering his sizable personal overhead with a $35 million cash advance from AEG Live, the concert promoter that was planning to stage his London concerts. That loan, too, has been repaid.


    Mr. Jackson's debts were spiraling out of control in other ways, too. A loan backed by Mijac carried a crushing 16.5% interest rate, to be paid out of royalties generated by the company. When the royalty payments fell short of the towering cost of servicing the debt, any unpaid interest was piled on to the principal. As a result, by the time of his death, the Mijac loan had reached $75 million, with $11 million due in annual interest, which was several million dollars more than the catalog was generating annually. The loan has now been refinanced with an interest rate of less than 4%. And thanks to increased album sales since Mr. Jackson's death and a new deal for public-performance royalties, the catalog is generating enough cash to pay off the refinanced loan a little more than a year from now.


    Looking to raise cash Mr. Jackson had planned, then scrapped, an auction of most of his personal effects from Neverland, his 2,600-acre ranch near Santa Barbara. In 2008, after he had defaulted on a $24.5 million loan backed by the ranch itself, the property was spared from foreclosure when Colony Capital LLC, a Los Angeles real-estate investment firm, bought the note and put the property into a joint venture with Mr. Jackson. That venture is structured in such a way that Colony is responsible for the ranch's overhead, maintenance and tax costs.


    If the property is sold, Colony is entitled to recover its costs, including the $24.5 million is paid to take over the busted loan, with the majority of the additional proceeds going to Mr. Jackson's estate. People with knowledge of the situation say that because of logistical issues, Neverland is unlikely to be converted into a public attraction like Elvis Presley's Graceland, making a sale the most likely outcome, though it doesn't appear imminent.


    Quelle: Michael Jackson Estate Targets Big Debt - WSJ.com

    Ich weiß, dass ist ja ein bisschen viel verlangt, aber vielleicht findet sich ja jemand. Könnte vielleicht jemand den englischen Text in ein paar Worten auf Deutsch zusammenfassen? Vielleicht, für was die ganzen Zahlen stehen. Mein Englisch ist nicht so gut.
    Wäre echt total lieb!!

    Soll ich "den Übersetzer" anrufen / holen? ;) ;D Der hat eh grad viel mit E zu tun ;).


    Was ich aber noch sagen wollte:


    So schön es auch erstmal ist bzw scheint, dass Michael posthum so erfolgreich ist, so kann ich mich dennoch nicht wirklich authentisch darüber freuen.


    Und selbst wenn die Meldung käme, der Estate hätte sogar 5 Milliarden verdient, dann würde mich das irgendwie sogar eher traurig machen.


    Mir wären Michaels Schulden - er aber dafür am Leben lieber.


    Auch habe ich ein etwas mulmiges Gefühl dabei, wenn man so mitkriegt, mit welchem Eifer der Estate usw. ihre Geschäfte mit Michael machen, und den Hals nicht voll kriegen können.


    Bei allem Verständnis, dass es gewissermaßen normal ist, dass, wenn ein Künstler stirbt, das Geschäft mit ihm boomt, war damals bspw. mit Freddie auch nicht anders.


    Trotzdem richtig glücklich macht mich das alles nicht.


    Wenn auch evtl. etwas schiefer Vergleich, fiel mir aber ein, als ich die Berichte hier las - vor Kurzem gab es die Meldung, dass eine Mutter im Afghanistan-Einsatz ihren, glaub 22-jährigen Sohn verlor. Als "Entschädigung" bekam sie von der Bundeswehr 20,000 EUR überwiesen... Sie rührte das Geld bis heute nicht an, und will es auch weiterhin nicht tun, weil sie es als Blutgeld betrachtet.


    Ich weiß nicht, aber so bisschen haben auch diese ganzen Millionen-Umsätze seit / mit Michaels Tod auch irgendwie Blutgeld-Charakter, finde ich. Zumal Michaels Tod derart tragisch und angesichts der Gesamtumstände als besonders schlimm und schmerzhaft einzustufen ist.


    Bei allem Verständnis dafür, dass es so kommen musste, wenn Michael mal sterben würde, nicht anders wird es sicherlich auch mal mit Madonna, usw. ablaufen.


    Dennoch: angesichts dessen, wie die Beteiligten die Umsätze weiter anschieben und nicht genug kriegen können - spätestens ab da habe ich irgendwie kein optimales Gefühl mehr bei dem Ganzen.


    "RIP" sieht für mich ein wenig anders aus.

    Zitat

    nicht anders wird es sicherlich auch mal mit Madonna, usw. ablaufen


    Bei niemandem wird es in dem Maße ablaufen. ;) Madonna ist für mich nicht der Inbegriff eines Megastars; sie kann nicht ausgesprochen gut singen, sondern hat eher mit Skandalen auf sich aufmerksam gemacht, was nichts anderes ist als das was heutige Möchtegernstars versuchen, bloß die selbe Nummer kann man kein zweites Mal mit solchem Erfolg durchziehen.

    Natürlich macht es nicht "glücklich".


    Es ist nur um so unbegreiflicher, wie Michael in solche Schwierigkeiten kommen konnte. Ist ja nicht so, dass er in den letzten Jahren gar nichts vekauft hat. Wäre es nicht möglich gewesen anstelle einer Tour wirklich neue Musik zu veröffentlichen? Ich hab ja keine Ahnung was wieviel kostet und was wieviel bringt...
    Gabs Probleme wegen 'ner Plattenfirma, hatte er Angst keiner kauft mehr was von ihm, kam er nicht aus dem Knick mit seiner Musik? Ich versteh's einfach nicht, wie die Dinge so aus dem Ruder laufen konnten, dass er erpressbar wurde.


    Ach man... ich komm vermutlich einfach mit den Michaeligen Dimensionen von Einnahmen und Ausgaben nicht klar...

    also für mich hat das eine nichts mit dem anderen zu tun.
    michael ist nunmal -leider - tot. :sad
    dass seine geschäfte weiterlaufen ist normal und richtig, und je besser, umso lieber ist mir das.
    natürlich wäre mir michael lebendig und gesund auch lieber, selbst hochverschuldet. aber diese option gibts nicht, und es ist daher unsinn, das in diesen zusammenhang zu setzen.
    es ist ein erfolg für michael und den estate, dass sie sich aus den roten zahlen in den gewinn arbeiten,
    und dass sie somit michaels kindern ein sorgenfreies leben und seinen diversen hilfs-orgas eine weitere sichere einkunftsquelle bereiten.
    michael war zu lebzeiten eine mega-marke die alles toppte,
    und dass sie nach seinem -viel zu frühen- ableben ebenso stark sein wird, eher noch stärker, das war zu erwarten.
    alles andere hätte mich schockiert, und ich wäre vom glauben an die menschheit und deren musik-geschmack abgefallen :Q
    wärs denn besser, wenn jetzt alles den bach runterginge, wenn die schulden weiter hochliefen, wenn der estate bankrott anmelden müsste, und die zukunft der kinder in den sternen stünde,
    nachdem sie doch schon die wichtigste bezugsperson ihres lebens verloren?
    nee. da bin ich dafür, dass ALLES in die waagschale geworfen wird, man nochmal alles gibt und nochmal deutlich ein zeichen setzt, wie gross michael war, und immer noch ist :top
    auch für michaels kinder, die ja jetzt so langsam erst richtig verstehen lernen, was für ein megaberühmter und erfolgreicher star ihr dad war.
    bis sie das alles erfassen können, werden noch jahre ins land gehen, das kann man mit 13 und 12 noch garnichtmal im ansatz begreifen.
    aber sie werden für immer stolz sein auf ihren vater - eben auch in geschäftlicher hinsicht,
    dass er das alles so verfügt hat, und auch nach seinem tod alles geregelt ist und weiter wächst.

    Zitat von Duff-Man

    Bei niemandem wird es in dem Maße ablaufen. ;) Madonna ist für mich nicht der Inbegriff eines Megastars; sie kann nicht ausgesprochen gut singen, sondern hat eher mit Skandalen auf sich aufmerksam gemacht, was nichts anderes ist als das was heutige Möchtegernstars versuchen, bloß die selbe Nummer kann man kein zweites Mal mit solchem Erfolg durchziehen.



    Es kommt abgesehen vom künstlerischen Schaffen ja eben auch auf andere Faktoren an. Ob Michael Jackson, Elvis oder Diana, sie starben früh und in einer gewissen Tragik, die ihre Legendenwirkung potenzieren ließ. Wenn Madonna jetzt sterben würde, was wir ihr nicht wünschen, so hätte das sicher auch große kommerzielle Kraft. Es ist ja immer auch entscheidend, was aus einer Figur, die Legendwirkung hat von Kapitalisten gemacht wird. Dabei ist Qualität nicht unbedingt der Maßstab, sondern exzessive Vermarktbarkeit.


    Hat Madonna dieses Potenzial? Ich sage ja. Vergleiche bringen da wenig.. Michael spielte künstlerisch immer in einer anderen Liga, aber Madonna ist auch ein Mythos, ein Trendsetter, der über 3 Jahrzehnte verteilt zur Marke wurde.

    Ich hab einen Text auf Deutsch gefunden:


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