Michael Jackson's Personal Debts Paid Off, Just In Time For Bad 25

billyworld99

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Zack O'Malley Greenburg,

On the eve of the Thanksgiving debut of Spike Lee’s Bad 25 documentary, the late Michael Jackson has a lot to be thankful for.

Yesterday a representative of the singer’s estate confirmed to FORBES that, on Monday, the estate paid off the last dollars on a loan connected to Mijac Music, the catalog that’s home to many songs composed by the King of Pop, including hits like “Beat It” and “Billie Jean.”

The payment means that the estate has eliminated the last of Jackson’s outstanding personal debts (FORBES reported last month that Jackson’s personal debts would be paid off by the end of the year). That’s no small feat, considering the pile obligations–roughly half a billion dollars–left behind by the singer when he passed away in 2009.



Jackson’s estate has been able to pay off that debt earlier than expected thanks to the enduring popularity of the King of Pop and his work, which spurred earnings of $145 million over the past year alone.



Financial highlights since 2009 include a $60 million advance for concert film This Is It, which went on to become the most successful concert film in history with a worldwide gross in excess of a quarter billion dollars, as well as a new $250 million record deal with Sony, the largest ever.

More recently, the Michael Jackson Immortal World Tour–a joint venture with Cirque du Soleil–grossed $160 million during its first leg, making it this year’s top tour in North America. The show now moves abroad, and is currently wending its way through Germany.

There are still some business debts left for Jackson, namely a loan that FORBES estimates at $280 million, connected to the Sony/ATV publishing catalog.

But the loan’s interest rate of 2.9%, negotiated down from 5.8% shortly after the singer’s death, seems innocuous enough–and perhaps necessary for continued expansion of the company, which is half-owned by Jackson’s estate.

Meanwhile, the show goes on. Lee’s BAD 25 documentary, which celebrates the quarter-century anniversary of Jackson’s followup to Thriller, will air on Thanksgiving at 9:30pm Eastern time on ABC.


http://www.forbes.com/sites/zackoma...sonal-debts-paid-off-just-in-time-for-bad-25/
 
I have to say I have never heard a $280 Million dollar loan being referred to as 'innocuous enough' even if the reference is mainly to the 2.9% interest rate. When it comes to Michael, though, I guess a 280M debt, given an income in over 145 million per year, is no biggie!!

Yes, I am very thankful for this good news, and for having Michael in my life, all his millions of fans, supporters, and the upcoming documentary Thanksgiving night.
 
Aww!! I'm so glad for my baby Michael :clap:

I'm thankful that this happened for Michael. But, it could of been better if he was alive to enjoy it. But that's ok, because he's in a better place where no debt is, Heaven. I love you Michael forever
 
I have always suspected Michael Jackson never owed as much money as has been reported. :smilerolleyes:
Anyway, Michael Jackson, is debt free this is WONDERFUL NEWS!!!! :cheers:
 
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I'm so proud of the phenomenal job The executors are doing for Michael's musical legacy and his Estate. This is certainly great news. Just as we get ready to celebrate Thanksgiving and Spike Lee's Bad 25 Documentary, yet another thing to be thankful for.
 
I have always suspected Michael Jackson never owed as much money as has been reported. :smilerolleyes:
Anyway, Michael Jackson, is debt this is WONDERFUL NEWS!!!! :cheers:

he had the debt that was reported , it's just that his personal debt is paid and the close to $300 M business loan on Sony / ATV is still being paid.
 
Great news as usual. Let's send it to his distractors. This must be making Sullivan's mouth water!! Congratulations Michael.
 
This side of the pond we don't celebrate Thanksgiving, but I'm thankful for Joe Vogel, Zack from Forbes, the Estate and Spike Lee. They have done great job in terms of MJ's legacy and deserves to be thanked.
:bow:
 
CherubimII;3741060 said:
I have always suspected Michael Jackson never owed as much money as has been reported. :smilerolleyes:Anyway, Michael Jackson, is debt free this is WONDERFUL NEWS!!!! :cheers:
Actually, what had been reported is closer to the truth.His personal debt is paid off but the biggest chunk (approximately 300M) is still outstanding. What wasn't true was the media making it sounds like he borrowed 500M to spend on himself. That is the lie.
About 200M was personal and the 300M was business related.

But it is still great news that they cleared his personal debt. Sony/ATV will pay itself overtime.

Thumbs up to MJ, Branca & co.Waiting for Randy to set his net coup d'état in motion.

With personal debt cleared, will Branca still keep the estate in probate next June?

ETA. I am curious to know how the Sony/ATV debt came to be. Has Sony been subsidizing SONY/ATV's expansion alone the years MJ was in financial difficulties? I hope Zack O'Malley covers this story in his book.
 
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How do tbey know what was the loans were for if they are claiming personal and business? medias obsession with mjs assets is pathetic
 
Fantastic. Over the moon. Well done John Branca and the MJ estate.
 
Great news, BUT the thing is... that Michael had to die so that they (the administrators of MJ Estate) would successfully administer/manage his financial matters and problems and pay off all his debts ... right after his death??????

Why there was not a single person who could help him before....?
 
Im sure they would have helped once he had income coming in to cover the debts. MJ had some incompetents working for him and even fired them. He was just getting his team together when he passed away. Michael's own Estate that he set up would not be in place to do anything untill he died. But who ever he hired at that time he was living would be the ones handling his finances. Michael could have started many projects with his team to bring in income and secure his debt had he lived. Probably would have faired well being he rehired Branca to help him. MJ didn't have to die to bring in revenue or secure his debt. But either way he needed a good team to help him do that.
 
Great news, BUT the thing is... that Michael had to die so that they (the administrators of MJ Estate) would successfully administer/manage his financial matters and problems and pay off all his debts ... right after his death??????

Why there was not a single person who could help him before....?
because after the martin bashit documentary Michael had to fight for his innocence and freedom above everything else and the ones he hired to manage his business exploiting his vulnerability and the whole allegation to steal from him. After the trial, he needed to recover, stay away from US to find some peace but who can think he couldn't even trust his own brother, randy Jackson further messed his finance and almost made Michael lose his catalog. This Is It is the time Michael was about to really focus on his work again since 03, but he didn't have the chance.
 
Congratulations, job well done! These guys are true professionals. :)

Miss you, Mike.
 
If they were "only" able to repay the smaller part of the loans (Michael's own persnal loan) during the last 3 years, will they ever be able to pay off the bigger part of it, considering Michael's catalogue will never again have such sales as it did in 2009?
 
If they were "only" able to repay the smaller part of the loans (Michael's own persnal loan) during the last 3 years, will they ever be able to pay off the bigger part of it, considering Michael's catalogue will never again have such sales as it did in 2009?

Yes, it will be paid off, but the rate of repayment is a business calculation based on corporate taxing. The Sony/ATV cataloge generates tremendous amounts of money and it continues to grow. Michael is a 50% owner but he could not generate the funds to imediately pay his share as the cataloge acquired more properties, thus a loan was secured. The problem was that in the beginning he was being charged an interest rate that was unfairly high for a huge corporate loan, 5.8%. Shortly after Michael's death, Branca brought is down to a reasonable 2.9% (half the rate he paid for years). The loan was necessary for continued expansion of the company.
 
Yes, it will be paid off, but the rate of repayment is a business calculation based on corporate taxing. The Sony/ATV cataloge generates tremendous amounts of money and it continues to grow. Michael is a 50% owner but he could not generate the funds to imediately pay his share as the cataloge acquired more properties, thus a loan was secured. The problem was that in the beginning he was being charged an interest rate that was unfairly high for a huge corporate loan, 5.8%. Shortly after Michael's death, Branca brought is down to a reasonable 2.9% (half the rate he paid for years). The loan was necessary for continued expansion of the company.

I thought ivy amongst others said those loans had nothing to do with sony/atv interms of them buying new cats? that the company itself got loans to buy cats not the individuals ie sony and mj? so the liability was with the company not the individual partners
 
Yes, it will be paid off, but the rate of repayment is a business calculation based on corporate taxing. The Sony/ATV cataloge generates tremendous amounts of money and it continues to grow. Michael is a 50% owner but he could not generate the funds to imediately pay his share as the cataloge acquired more properties, thus a loan was secured. The problem was that in the beginning he was being charged an interest rate that was unfairly high for a huge corporate loan, 5.8%. Shortly after Michael's death, Branca brought is down to a reasonable 2.9% (half the rate he paid for years). The loan was necessary for continued expansion of the company.

I thought ivy amongst others said those loans had nothing to do with sony/atv interms of them buying new cats? that the company itself got loans to buy cats not the individuals ie sony and mj? so the liability was with the company not the individual partners

I dont think Michael had to pay a share out of his own pocket for any property aquired by Sony/ATV. The company itself generated income to pay for the catalogs it aquired. Loans would be paid of from income generated by Sony/ATV not by individuals. I thought MJ used a share of Sony/ATV to secure a loan from Bank of America which was later refinanced and that is what the estate is paying back. Not money MJ owed to pay for aqusisitions SonyATV aquired
 
How do they know what was the loans were for if they are claiming personal and business? medias obsession with mjs assets is pathetic

Another thing is when they talk about his personal debt, they give the impression that it is mainly about him shopping for little doo dads, buying clothes.. so the reader gets the impression that this man was simple going around spending all the money on crap. They never clarify about the acquisition debt.
 
I dont really think the term personal debt gives the impression to people he was buying doodads and crap, everyone has personal debt. I think most people understand that personal debt is what you aquire to live maybe for loans for nesessaties living and household expenses, furniture, transportation Vehicles. and in MJ's case maybe add rental of recording studios equptment, Body guards etc etc.

On a side note ...
The article is not saying everything that was paid off was personal debt alone, other business debts was paid off too. but they dont clarify that (which they probably should have ) Its Just saying that all personal debt is finally paid in full now leaving way for greater expansion of the Estate. Thats a good thing not meant to be taken as a negative toward MJ IMO. On a positive note he states thanks to the popularity of the KOP it was paid of, giving Michael credit. The writer Zack O'Malley Greenburg is relaying information he got direct from the Estate to release. His past articles have been fair to MJ and The estate so far...
 
Michael was heavily in debt, at the time of his death, because he had borrowed against his acquisitions, his own music, his Interest in the 50% he shared with Sony (which included all 251 Beatle song's) and "Neverland." Michael was his own Sponsor, you might say, and he kept the entire Jackson clan going. Pepsi was gone, so was the Prince from Saudi Arabia, which had sponsored "Bad," "Dangerous" and "HIStory" tour's previously.

When "Neverland" was about to be foreclosed upon, Thomas Barrack of "Colony Capital" stepped in and helped Michael from going that route, losing "Neverland" to foreclosure. Then the 02 Concert's happened because Thomas Barrack picked up the phone and called Phillip Anschutz who owns AEG and Michael was put back to work to begin paying off his huge debt.

Thomas Barrack would not have stepped in if Michael wasn't the Artist that he was. Thomas Barrack and Phillip Anschutz both knew that Michael would be back up on top of the World, because he was the King of Pop and the greatest Entertainer who ever lived and his fans love him still!
 
agree bee

I dont think Michael had to pay a share out of his own pocket for any property aquired by Sony/ATV. The company itself generated income to pay for the catalogs it aquired. Loans would be paid of from income generated by Sony/ATV not by individuals. I thought MJ used a share of Sony/ATV to secure a loan from Bank of America which was later refinanced and that is what the estate is paying back. Not money MJ owed to pay for aqusisitions SonyATV aquired
 
Qbee from my experience with people when they hear about Michael having personal debt within the context the tabloids present it, they think of senseless buying as I listed above. You think differently because of your knowledge, but we have to remember those who live on the nonsense written in the tabloid press where most learn about Michael do not subscribe to your way of thinking. If they did, then many of the campaigns we have to do for Michael, would not be necessary.
 
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