The King’s Ransom

Jackson's business associates and family aren't officially commenting on his financial affairs. A spokesperson for Sony/ATV declined to speak on any financial matters beyond describing the publishing operation as a 50-50 joint venture. Expressing his condolences in a prepared  statement, Martin Bandier, Sony/ATV's CEO, called Jackson "a trusted and passionate partner, who was very proud of our accomplishments." As for the status of Jackson's stake, the spokesman would only say, "There are specific beneficiaries of that asset." In a statement, Jackson's attorney, Joel Katz, commented generally on his business affairs, noting that Jackson was involved extensively in the preparations for the London concerts. "Michael Jackson was a perfectionist, and his business affairs are worldwide," Katz said. "Many of them are quite ongoing and will be dealt with appropriately."

While there's no denying Jackson's grim financial circumstances, others in his financial life say future earnings from his recordings and assets may largely offset his debts and leave him with a significant estate. "His legacy has a better chance of being preserved for his estate than ever before," a key adviser said this morning. "I don't think people understand the significance of his assets." According to this source, Jackson's publishing assets generate $50 million to $75 million a year. He collects a share of it, which is split with his partners. Sales of his past recordings easily yield another $5 million annually. At one point, Jackson was spending up to $20 million a year, however, and his mountainous debt had to be serviced from the proceeds, too. With his death, that spending will end, of course.

At the same time, Jackson's estate is likely to be caught up in the mother of all probate cases. That, this source says, will help buy time "for things to right themselves," especially given the explosion of income that his assets will now begin to generate. The estate "will earn tremendous amounts over the next few years, as would be the case when any legendary talent like Michael passes," this person says. "He's an icon like Marilyn Monroe and Elvis," says Keith Estabrook of the public-relations firm Estabrook Group. Larry Mestel, CEO and founder of music publisher Primary Wave, agrees. As lead of the Jackson 5, a quintet that included his brothers, and as a solo artist, Jackson "made some of the most incredible music," Estabrook says. "Like many of the greats, it will last for an enormous time." Jackson also leaves behind an uncounted trove of unreleased recordings, many of which may now be released.

Although the Los Angeles County medical examiner is conducting an autopsy to determine the exact cause of Jackson's death, his associates believe the financial pressures he faced were likely an indirect cause. Whatever health or substance-abuse problems Jackson had can't have been helped by the daily six-hour rehearsals he'd been doing for the upcoming concerts, which were made necessary by his frayed finances. "That had to be completely overwhelming," says one close associate. In the past decade Jackson's deteriorating finances had assumed a prominent role—alongside the surgical masks, unending cosmetic surgeries, childlike behaviors, and alleged molestations—in Jackson's eccentric, troubled public persona. In the hours after his death, Jackson would likely have been encouraged that most of the public focus has remained where he would have wanted it: on his music.

At James Brown's funeral a few years ago, standing alongside Al Sharpton at the open casket, Jackson spoke to the reverend about legacies: "When a legend dies, maybe he will get in death what he didn't get in life in terms of credit." Recalling that story today to NEWSWEEK, Sharpton added, "I hope that's true for Michael."

© 2009