that's probably because Rowe was never hired by Michael.
It was reported well before MJ's death that Rowe was being pushed in by Joe in order for him to step in and control the TII concerts.
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Leonard Rowe
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that's probably because Rowe was never hired by Michael.
It was reported well before MJ's death that Rowe was being pushed in by Joe in order for him to step in and control the TII concerts.
There’s the usual turmoil in the world of Michael Jackson.
Now that Jackson is about to come into some money, everyone around him wants a piece of the pie. Not to be counted out is his father Joseph Jackson.
I told you last week that Jackson and sketchy concert promoter Leonard Rowe decided they should be Michael’s managers. They called this reporter and anyone who’d listen. I reported this news here.
Over the weekend, Jackson senior and Rowe sent out a "press release" to this column and various Jackson fan clubs asserting that they were Michael Jackson’s managers. Their intent, it seems, is to start booking shows without Michael’s permission.
Well, let it be said again: Jackson senior and Rowe are not managing Michael Jackson and certainly not attending to his "business interests" as laid out in their press release. Over the weekend someone named Ladd Biro kept emailing this reporter insisting all this was true. But conversations with Jackson’s current actual advisers and producers of his London shows confirmed that Leonard Rowe and Joseph Jackson simply have nothing to do with the singer.
Indeed, sources at AEG Live, which is producing the London shows, told Rowe to cut it out or face the consequences.
http://www.foxnews.com/entertainment/2009/03/30/rihanna-said-cooperating/
The AllGood lawsuit comes with some names in absentia: Joseph Jackson, Michael’s PT Barnum-like father, and Leonard Rowe, a concert promoter with a bad rep. These two characters called this reporter some months ago. Joseph was on the phone, and told me he wanted to get involved in taking over Michael’s AEG shows. “I’m the only one who can do them right,” he said.
At some point, Joseph Jackson and Rowe may have hooked up with Tohme R. Tohme, Michael’s official manager, now fired. A few weeks ago this reporter received an “anonymous” phone call from a man who said he had negative information about another Jackson associate, Arfaq Hussain, whom the caller claimed was now Jackson’s manager. The man said he’d be calling back with more info soon. The caller doesn’t know it, but I know who he is. He wasn’t too bright at masking his voice or his caller ID.
While all the hustlers, gypsies, tramps and thieves sneak around the Jackson saga to see if there’s any money for them, the onetime King of Pop is actually rehearsing his show. Right now, the whole enterprise is being tested at the Forum in Inglewood, California. In the next couple of weeks, when Lakers basketball is over, they move dress rehearsals to the Staples Center. On July 3, they head to London for installation. Like it or not, Michael Jackson is taking the stage at the O2 Arena on July 13th for AEG Live. Frank DiLeo may be back as the official manager. All systems are go so far.
http://buzz.hollywoodreporter.com/2009/06/10/michael-jackson-allgood-promotions-lawsuit/
and see this video - taken at April 2009 at Paris's birthday. who is Joe travelling with?
Majestic and Leonard Rowe
http://www.associatedcontent.com/video/228246/michael_jacksons_father_turns_up_for.html?cat=2
Now that Jackson is about to come into some money, everyone around him wants a piece of the pie. Not to be counted out is his father Joseph Jackson.
I told you last week that Jackson and sketchy concert promoter Leonard Rowe decided they should be Michael’s managers. They called this reporter and anyone who’d listen. I reported this news here.
Over the weekend, Jackson senior and Rowe sent out a "press release" to this column and various Jackson fan clubs asserting that they were Michael Jackson’s managers. Their intent, it seems, is to start booking shows without Michael’s permission.
Well, let it be said again: Jackson senior and Rowe are not managing Michael Jackson and certainly not attending to his "business interests" as laid out in their press release. Over the weekend someone named Ladd Biro kept emailing this reporter insisting all this was true. But conversations with Jackson’s current actual advisers and producers of his London shows confirmed that Leonard Rowe and Joseph Jackson simply have nothing to do with the singer.
Indeed, sources at AEG Live, which is producing the London shows, told Rowe to cut it out or face the consequences.
http://www.foxnews.com/entertainment/2009/03/30/rihanna-said-cooperating/
The AllGood lawsuit comes with some names in absentia: Joseph Jackson, Michael’s PT Barnum-like father, and Leonard Rowe, a concert promoter with a bad rep. These two characters called this reporter some months ago. Joseph was on the phone, and told me he wanted to get involved in taking over Michael’s AEG shows. “I’m the only one who can do them right,” he said.
At some point, Joseph Jackson and Rowe may have hooked up with Tohme R. Tohme, Michael’s official manager, now fired. A few weeks ago this reporter received an “anonymous” phone call from a man who said he had negative information about another Jackson associate, Arfaq Hussain, whom the caller claimed was now Jackson’s manager. The man said he’d be calling back with more info soon. The caller doesn’t know it, but I know who he is. He wasn’t too bright at masking his voice or his caller ID.
While all the hustlers, gypsies, tramps and thieves sneak around the Jackson saga to see if there’s any money for them, the onetime King of Pop is actually rehearsing his show. Right now, the whole enterprise is being tested at the Forum in Inglewood, California. In the next couple of weeks, when Lakers basketball is over, they move dress rehearsals to the Staples Center. On July 3, they head to London for installation. Like it or not, Michael Jackson is taking the stage at the O2 Arena on July 13th for AEG Live. Frank DiLeo may be back as the official manager. All systems are go so far.
http://buzz.hollywoodreporter.com/2009/06/10/michael-jackson-allgood-promotions-lawsuit/
and see this video - taken at April 2009 at Paris's birthday. who is Joe travelling with?
Majestic and Leonard Rowe
http://www.associatedcontent.com/video/228246/michael_jacksons_father_turns_up_for.html?cat=2
and after his death this was published
Michael Jackson's former friend and supposed financial advisor Leonard Rowe is planning a tell-all book about the King of Pop.
But even before the book is released, Rowe's former publicist has poured scorn on the exposé, accusing the music manager of being less than loyal to Jackson and his family.
"Rowe had been working on this book before Michael passed away and it was not going to be favorable," Cataunya Ransom told RadarOnline.com, in an exclusive interview.
"Rowe wanted to expose Michael... he had no good intentions and just wanted to ride off Michael's name."
Rowe's one-time advisor added: "The original plan Rowe had was to use Michael's name and have a bombshell book to gain for himself. Now his book can't be all bad stuff about Michael because if it's bad he'll burn his relationship with the Jackson's and he can't afford to do that."
Rowe, who is no relation to Michael's ex-wife Debbie Rowe, remains a close confidant with family patriarch Joe Jackson.
Ransom said it was Joe who hatched the plan for Rowe to represent Michael.
"I don't believe that Rowe was ever Michael's financial advisor like he says he was," Ransom said.
"Joe Jackson and Rowe faxed out a release saying that Rowe would be representing Michael."
But as RadarOnline.com has previously reported, Michael fired Rowe via a written letter, stating: "This is to inform you that you do not represent me and I do not wish to have any oral or written communications with you regarding the handling of my business and/or personal matters."
http://www.radaronline.com/exclusiv...n-advisors-tell-all-book-not-thriller-says-ex
and the following is the link that shows that this Catunya Ransom was really working with/for Rowe since 2008.
http://www.pr-inside.com/legendary-promoter-leonard-rowe-retains-r909848.htm
Michael Jackson's former friend and supposed financial advisor Leonard Rowe is planning a tell-all book about the King of Pop.
But even before the book is released, Rowe's former publicist has poured scorn on the exposé, accusing the music manager of being less than loyal to Jackson and his family.
"Rowe had been working on this book before Michael passed away and it was not going to be favorable," Cataunya Ransom told RadarOnline.com, in an exclusive interview.
"Rowe wanted to expose Michael... he had no good intentions and just wanted to ride off Michael's name."
Rowe's one-time advisor added: "The original plan Rowe had was to use Michael's name and have a bombshell book to gain for himself. Now his book can't be all bad stuff about Michael because if it's bad he'll burn his relationship with the Jackson's and he can't afford to do that."
Rowe, who is no relation to Michael's ex-wife Debbie Rowe, remains a close confidant with family patriarch Joe Jackson.
Ransom said it was Joe who hatched the plan for Rowe to represent Michael.
"I don't believe that Rowe was ever Michael's financial advisor like he says he was," Ransom said.
"Joe Jackson and Rowe faxed out a release saying that Rowe would be representing Michael."
But as RadarOnline.com has previously reported, Michael fired Rowe via a written letter, stating: "This is to inform you that you do not represent me and I do not wish to have any oral or written communications with you regarding the handling of my business and/or personal matters."
http://www.radaronline.com/exclusiv...n-advisors-tell-all-book-not-thriller-says-ex
and the following is the link that shows that this Catunya Ransom was really working with/for Rowe since 2008.
http://www.pr-inside.com/legendary-promoter-leonard-rowe-retains-r909848.htm
Ashtanga
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I remember at that time I just saw the pictures Joe alone in the sites.marc_vivien
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again the same leeches
AnnieRUOkay89
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marc_vivien
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Rowe and Joe wanted a piece of the cake.
Who were behind the AGE contract and Alloco ?
again Rowe and Joe
Who were behind the AGE contract and Alloco ?
again Rowe and Joe
earth child
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Yeah, read the AEG contract. That is proof enough for me!
earth child
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Yeah, Lets take a closer look at the dates and name on these articles.
First link, By Roger Friedman
Published March 30, 2009 FOXNews
Second link,By: Roger Friedman Wednesday June 10, 2009
Yeah, Roger Friedman can be trusted with the truth. NOT!
As for Rowe being with Joe in April, they were by then trying to help Michael not get screwed by AEG! Like paying him in US dollars instead on pounds. Read the contract people! They (AEG) were screwing Michael like no artist has been screwed before. They had it set up that they didn't need to pay Michael a dime until 60 days after the London shows! Most artists get paid the night of their shows or every week of a tour. They were including all the production cost of the show as advances to Michael that he had to pay back! They had him under contract until Dec. 31st 2011, meaning he couldn't work for anyone else during that time, in order to make money to get out from under AEG's thumb. That was all bad enough but they also were scalping tickets at outrageously high prices because of MJ's selling power. None of that money would have been paid to Michael, because he didn't know about it.So not only were they screwing Michael, they were screwing his fans and they still are. They also were paying Tohme through Michael's company. For what I wonder?
Don't tell me Michael read and signed the contract! Michael was not dumb enough to have signed such a far reaching contract with out his so called "lawyers" telling him it was fine! The lawyers were on AEG payroll too!
Think what ever you want of Rowe, he is telling the truth.
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Like or hate it - Friedman has his sources. he's generally the first to report Michael's staff changes, concerts etc (he's the one that reported Branca's leave in 2006, Peter Lopez hiring, even TII negotiations). The problem is that he's not really respectful towards Michael (and his reporting during 2005 trial).
Add to the mix that Michael sent a letter to Rowe in May, Friedman knew what he was talking about.
As far as the contract goes - you hire a lawyer to change / challenge /negotiate an already signed binding contract - not a tour organizer.
earth child
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Funny how Dileo was sued for that contract then?
marc_vivien
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in his book, Rowe said himself the AGE contract was from him.
Yes, he was not sued. Because he has no money.
In the meeting, Rowe and Joe were there for the AGE concert, not the AEG concerts.
Days later, he was fired.
Yes, he was not sued. Because he has no money.
In the meeting, Rowe and Joe were there for the AGE concert, not the AEG concerts.
Days later, he was fired.
I am really curious to see this contract that you speak of. I have been looking on line everywhere and cannot find the actual contract between Michael and AEG.
I would like to see for myself what is in there. Do you happen to know where it is visible online?
earth child
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No, what Rowe said is he was trying to help out Janet and yes, he was involved with trying to get Michael signed.
However, it was Dileo who fraudulently signed FOR Michael, hence the reason he is being sued.
By the way, the racist music industry is at fault in keeping black promoters like Rowe from obtaining honest working, no wonder he has no money.
marc_vivien
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LOL, he is the one who was in jail for writing false checks and owes now money to R. Kelly and Ne-Yo
contract can be found here
http://www.radaronline.com/sites/default/files/AEG contract.pdf
that lawsuit is over and Dileo is cleared. Judge determined that it was just and initial agreement and Dileo's signature wasn't binding/representing Michael.
ps: Allgood alleged that Dileo was fradulent however judge found no fraud on his part. It's not wise to make definitive statements of this sort without the court decision.
Both R Kelly and NeYo who hired and later sued him are black artists. Unless you are arguing that those black artists are racist against other black people I fail to see how does race plays a role in this discussion and/or events.
earth child
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U.S. District Judge Harold Baer Jr. determined that there was a letter of intent between Jackson's then-manager, Frank DiLeo, and AllGood, but never an enforceable contract. He noted that neither Jackson nor any other members of the family who were to be involved in the show ever signed a contract.
http://www.wtop.com/?nid=114&sid=2031667
Point being, it wasn't Rowe or Joe trying to sign him to that deal, it was Dileo, whether is was fraudulently of not.
[/QUOTE]
Again, exactly the point, black promoters are only allowed to promote black acts. Racism with-in the industry.
30 some years in the concert promotion business and sued by two people? Not that bad of odds. I fail to see how that plays a role in any way with what he is saying about Michael's death. The two thing are completely unrelated.
AnnieRUOkay89
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Again, exactly the point, black promoters are only allowed to promote black acts. Racism with-in the industry.
30 some years in the concert promotion business and sued by two people? Not that bad of odds. I fail to see how that plays a role in any way with what he is saying about Michael's death. The two thing are completely unrelated.[/QUOTE]
Now you're just pulling straws here. He was sued by two black artists, how is that racism? His past plays a big role in what he says about Michael's death, because it's his past which raises question about his credibility. He's proven in the past that he isn't able to be trusted with many things, including someone's business affairs.
you say that black promoters cannot obtain honest work due to racism / discrimination - okay
but then he gets to be the promoter of R Kelly - who happens to be a hot act at the time - simply because "he convinced R Kelly that he was an underdog who deserved a chance to prove himself" (R Kelly's words)
then he unfairly fired Ne-yo - and then at a later lawsuit he's fined to pay $700,000 to him
and he steals $3.4 Million from R Kelly - actually by not paying him his tour proceedings.
so news flash ! you say that AEG's contract was bad because they were going to pay Michael several weeks later. Guess what, Rowe did even worse to R Kelly by not paying him a dime and making him perform for free. (He didn't pay late, he simply didn't pay at all).
and seriously if he was unable to get work from white artists due to discrimination/racism, why and why he would go and screw black artists who were willing to hire him? Is this honest work? Also What about his former pr person telling that he was writing a bad book about Michael before he died?
Plus he wasn't only sued by R Kelly and Neyo, he was also sued by a large number of investors whom he was selling "imaginary" shares from the tour.
He also has been to prison and arrested several times for "fraudulent" checks. So it's not only 2 people that sued him/
All of these goes to show that he's not a credible person and it's completely relevant to this discussion.
exactly my point.
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I have not read Rowe's book, whatever his past of writing bad checks, he apparently paid society for his wrongs. Lawsuits - people do win or lose them unfairly. R. Kelly is a questionable guy anyway. MJ lost the one against Marcel Avram - not sure who was really in the right.
But there are others who can corroborate what Rowe has to say. In the video with Joe & Majestik, hard for me to say if they were coming or going, but there were others present. Angel Howansky was in the vid, the woman who says she was MJ's friend on the Eddie Jones looks like one of the people there also, along with other people besides Rowe. It was Paris's birthday & I see other cars that I hadn't seen in previous pics of that day. Wasn't it videotaped too, as the Cirque du Solei was there? I thought I read that. So there will be corroboration one way or the other.
In the link it says:
http://www.associatedcontent.com/video/228246/michael_jacksons_father_turns_up_for.html?cat=2
LOS ANGELES, CALIFORNIA - After losing his court case over Michael Jackson's auctioned belongings, Michael's father Joe Jackson unexpectedly turns up at his house pimped out with lots of bling! Michael and his father are known to not get on well, and after being made to wait outside for several minutes, Joe was finally let into the house. Several fans also approached Joe to take some presents inside for Michael's daughter 'Paris' whose birthday it is today. Michael celebrated Paris's birthday in his back yard with circus performers and stilt walkers.
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earth child
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IMHO you are the one pulling straws. None of this had anything to do with Michael's murder or how Rowe says it happened.
As jrsfan stated, lawsuits are unfairly won and lost everyday. The court system in this country has a lot to be desired. I don't think I need to site every case of corruption with in the system to prove that. And to say that what Rowe did to R. Kelly is worse than what AEG was doing to Michael, in no way should lets AEG off of the hook, in my eyes.
I don't care if Joe Jackson or Leonard Rowe ripped off 200 thousand people, that doesn't excuse what was being done to Michael. The two are in no way related.
they are and here's why.
your whole argument is that AEG contract was bad in many ways and that Rowe was hired to correct it and he was close to Michael and therefore he would know what was happening and we should listen to what he's saying as he's truthful.
I'm not arguing about whether AEG contract was good or bad, honestly I didn't read it in detail and I don't have another example of contract for another major artist that does residency to compare it. therefore I cannot determine whether it's a good or bad contract. (neither can anyone but that's not my point here).
I'm saying that even if it was bad and needed to be corrected, Michael would have hired a lawyer. For signed binding contracts you need lawyers , not concert promoters.
Then those R Kelly and Ne-yo events happened in 2008. Remember you say that he was there to save Michael from AEG's wrongdoing and honestly if he ripped of 200 people then it's very probable that Michael could have been the next. What collateral, evidence do we have that he wouldn't do the same to Michael? Just because a judge said to him to pay $3.4M to R Kelly did he become an angel? (also did he pay to R.Kelly at all?)
One thing you are right and I agree is that "none of this excuse what was being done to Michael". Absolutely. I didn't say that "people stole from R Kelly and therefore it was okay to steal from Michael as well". Nothing excuses a bad contract (if true) or taking advantage of Michael by anybody.
All I'm saying that "I do not believe Rowe's word. Because he's not credible and his recent past shows that he cannot be trusted with business affairs as well".
and something else to remember
(side note : what Dileo told us about AllGood contract turned out to be the truth)
So Friedman before Michael's death, Dileo after he died, Rowe's own PR person before his book was released all say the same thing that Michael didn't really hire Rowe and he was pushed on to Michael by Joe.
And that's my point here too. Michael never wanted to hire him, he wasn't close to Michael, his business etc at all to know anything and he's pushing Joe's agenda. I do not find his word to be credible at all. If you want to see him as a savior and saint, a honest businessman and want to believe what he says be my guest. I simply do not.
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Personally I find that Dileo has been a liar. He has had shady business dealings documented by Muzikfactory2. He lied on LKL about the meeting on May 15. He works for the estate. KJ felt that he was feeding the tabs in her book & said he was making her son look like an idiot (something to that effect) - I'd have to go read her book to get the exact quote.
Rowe does have credibility issues - but there are other people who can confirm what happened.
There is alot more that went on behind the scenes - Arfaq Hussain, Thome, Rowe, Dileo. We need alot more information I believe, we are just scratching the surface unfortunately.
Rowe does have credibility issues - but there are other people who can confirm what happened.
There is alot more that went on behind the scenes - Arfaq Hussain, Thome, Rowe, Dileo. We need alot more information I believe, we are just scratching the surface unfortunately.
MJ did not sever ties with Malnik until April 2005 - he was named along with Branca, Koppelman, Mottolla, Trudy Green, Kaufman & Ratner by
Carol Davis of Mark Geragos law firm on Justicesystem.net. That list was on MJJForum, jacksonaction, kopboard & I am sure many others. Here are links of discussion on kopboard:
http://www.mjj2005.com/kopboard/index.php?showtopic=5048&hl=trudy+green
http://www.mjj2005.com/kopboard/index.php?showtopic=20380&hl=trudy+green
Malnik, Branca & Koppelman were working on a Goldman Sachs deal during the trial & wanted MJ to sell all or part of the Sony catalog according to this article by Wall Street Journal.
Koppelman made the TV rounds before the trial about how MJ would still be successful, had many good years left. He was very positive, I remember him well.
link:
http://online.wsj.com/article_email/SB111819644592353818-Idje4NolaN4n5upbHuGca2Fm4.html
Michael Jackson's Other Battle:
Staving Off Financial Disaster
Lavish Expenses, Legal Bills
Could Force Asset Sale;
Lots of Conflicting Advice
Jesse Jackson Makes a Pitch
By ETHAN SMITH and KATE KELLY
Staff Reporters of THE WALL STREET JOURNAL
June 8, 2005; Page A1
In the glare of a Santa Maria, Calif., courtroom, pop singer Michael Jackson has been fending off criminal charges of child molestation that threaten his career and his freedom. Behind the scenes, the 46-year-old entertainer is embroiled in an equally critical battle over the future of his financial assets.
Mr. Jackson's other crisis is centered on a seemingly simple question. To escape at least $270 million in debt amassed in support of his unusual lifestyle, should Mr. Jackson sell his stake in a coveted music-publishing catalog?
The answer has not come easily. Mr. Jackson is surrounded by an ever-changing cast of characters, making it difficult to determine who, if anyone, is in charge of his business affairs. One camp has urged Mr. Jackson to sell some of his holding to avert financial disaster. Another group -- which includes supermarket billionaire Ron Burkle -- says such drastic action is unnecessary. More recently, the Rev. Jesse Jackson has emerged as an outspoken advocate for the singer and has personally interceded on his behalf with bank officials.
Meanwhile, according to a person close to the singer, Mr. Jackson's cash reserves ran so low earlier this year that he worried about paying his electric bill.
After two months of backstage maneuvering, Mr. Jackson is, as usual, in an odd spot. The financial fate of the former King of Pop now rests in the hands of a New York-based investment firm that invests in distressed debt. Last month, Fortress Investment Group LLC bought Mr. Jackson's loans outstanding from their holder, Bank of America Corp.
In a written statement, Jackson spokeswoman Raymone K. Bain said the agreement with Fortress "will provide greater financial strength and flexibility for Mr. Jackson."
The story of how Mr. Jackson was pushed to the brink of financial disaster is another strange turn for a performer whose 40 years in the public spotlight are filled with many such moments. After a series of high-profile incidents -- from settling a previous allegation of sexual abuse to being pictured dangling his infant son from a hotel balcony -- the singer finally wore out his welcome with the public. As his popularity plunged, Mr. Jackson used loans to compensate for declining income from record sales and concert tours.
The singer shells out more than $1.5 million a month in overhead costs, according to a person familiar with his finances. At the Neverland ranch in California -- named for the fantasy world in J. M. Barrie's "Peter Pan" -- Mr. Jackson spends thousands of dollars to maintain his menagerie of zoo animals, according to documents filed in a lawsuit unrelated to the criminal case and the current financial mess.
Mr. Jackson's financial affairs tumbled into disarray in early April when Bank of America notified him that he was in default on part of the loans. The notice set off a furious debate over his most valuable asset: a 50% stake in Sony/ATV Music Publishing LLC, an entity that owns and administers copyrights to thousands of songs, including the words and music to 251 Beatles tunes. The catalog, which Mr. Jackson co-owns with Sony Corp., was pledged as collateral for some of the loan portfolio.
Even in the depressed music industry, catalogs are prized for the steady revenue they generate from public performances and other licensing fees. Sony/ATV is particularly valuable because it controls famous Beatles compositions such as "Yesterday" and "Hey Jude" and is valued by people who have recently looked at the company at more than $1 billion. Mr. Jackson could resolve his debt crisis by shedding all or part of his stake.
This spring, that's exactly what some of his closest advisers were urging. The group included longtime associates such as entertainment attorney John G. Branca, veteran music-industry executive Charles A. Koppelman and Miami attorney Alvin I. Malnik. A long list of buyers has expressed interest in the business, according to several people involved with the matter. Sony itself has had its eye on Mr. Jackson's stake for years and ex-Beatle Paul McCartney has closely followed the company's history, according to a person close to him.
Even after the sale to Fortress, which forestalled a bigger financial crisis, these advisers continued to urge the singer to sell. They are worried about an estimated $10 million legal tab in the criminal case and a possible bankruptcy filing.
To his advisers, Mr. Jackson has expressed an emotional tie to the Sony/ATV asset -- he bought it partly out of love for the Beatles -- and has resisted that advice. Instead, he turned to a longtime friend, Mr. Burkle. As managing partner of closely held Yucaipa Cos. LLC, a private investment firm, Mr. Burkle has little music-industry experience.
According to Jesse Jackson, who has allied himself with Mr. Burkle, the billionaire adviser agreed to analyze the situation. Mr. Burkle has told the singer the debt crunch could be resolved in a way that would avoid a sale, according to a person close to Mr. Burkle.
Unknown is the current inclination of Mr. Jackson himself, who seems ill-prepared these days to make the call. In the past week, he has checked into a hospital twice and barricaded himself inside his ranch. There he awaits a verdict in the criminal case.
The son of a steel-mill worker from Gary, Ind., Michael Jackson became a quasi-professional pop singer at the age of 4 thanks to the efforts of his father, Joe. Teamed with four elder brothers in the Jackson 5, little Michael quickly became the star with his good looks, dance moves and preternaturally assured vocals. The group topped the charts with hits such as "ABC."
Mr. Jackson went solo in 1979 and quickly became one of the biggest pop stars in the world. His album "Thriller" spawned giant hits like "Beat It" and "Billie Jean." In the U.S., it has shipped more than 26 million units, according to the Recording Industry Association of America, making it the second-biggest selling album ever, after "Their Greatest Hits: 1971-1975," a record by the Eagles.
Even during Mr. Jackson's heady years, strange reports surfaced about his friendships with a chimpanzee named Bubbles and child stars a fraction of his age. Mr. Jackson hid behind surgical masks or umbrellas as his personal appearance grew increasingly odd. His dark skin paled and his sculpted facial features were increasingly unrecognizable as those of the boy who won pop fans' hearts.
Amid the tabloid fodder, Mr. Jackson made a canny business move. In 1985, after a protracted bidding process, he bought ATV Music Publishing for $47.5 million from Australian businessman Robert Holmes a Court. A decade later, with his music career in decline, Mr. Jackson needed cash. In 1995 he entered into a complex partnership with Sony to merge ATV with the Japanese company's modest library of songs. Sony already owned Mr. Jackson's record label, Epic Records.
Sony paid Mr. Jackson $150 million, according to one person close to the transaction, and the electronics giant took operational control, according to several people familiar with the arrangement. Mr. Jackson became a 50% owner of the newly created Sony/ATV.
Sony/ATV's structure grants Mr. Jackson veto power over key executive appointments and new acquisitions, say people familiar with the deal. The contract also grants both partners the right to counter any offer to buy out the other side. In addition, these people say, contractual provisions allow either party to bid for the half it doesn't Corp., seeking $12 million in unpaid fees and expenses, he began to borrow large sums of money. By 1998, documents show, loans totaling $90 million from NationsBank Corp. were nearly exhausted. NationsBank merged with BankAmerica Corp. in 1998, and the newly combined company renamed itself Bank of America Corp. Mr. Jackson later sought additional capital from Bank of America.
By 2000, Mr. Jackson was on the hook for $270 million. Some of the debt was secured by Mr. Jackson's stake in Sony/ATV. Other loans were backed by Neverland and Mijac, a separate music-publishing firm that owns Mr. Jackson's compositions, among others.
According to the court documents, the debt supported a decidedly unconventional lifestyle. Expenses listed at the time included food for Neverland's animals, limousine rentals, costumes and $1.15 million in payments to "Debbie," a probable reference to Mr. Jackson's ex-wife, Debbie Rowe.
"Michael Jackson was -- and is -- a ticking financial timebomb, waiting to explode at any moment," Union Finance said in its suit.
In recent years, Mr. Jackson's financial situation worsened as his behavior grew more erratic. In 2002, he launched a public diatribe against then-Sony Music chief Thomas D. Mottola, calling him, "very, very, very devilish."
Attempts by some to steer the singer out of trouble were hampered by disagreements among the rotating cast of advisers. Among them was Mr. Branca, 54, a well-established Los Angeles music attorney whose clients include Aerosmith, Fleetwood Mac and Nelly. Mr. Branca, who has been involved with Mr. Jackson, on and off, since the early 1980s, owns a small stake in Sony/ATV, tied to Mr. Jackson's ownership, and negotiated most of the major contracts involved in the current struggle. For long stretches, he has found himself cut out of Mr. Jackson's affairs.
Also involved is Mr. Malnik, a 71-year-old Miami lawyer, who in 1980 was barred from entering casinos in New Jersey because of alleged organized-crime connections, which Mr. Malnik has previously denied. He could not be reached for comment. Mr. Malnik befriended Mr. Jackson several years ago, according to people who know them. The two men spent a weekend in Mexico with "Rush Hour" director Brett Ratner to celebrate Mr. Ratner's birthday, the director recalls.
Mr. Malnik brought in Mr. Koppelman, a storied figure in music publishing who is also vice chairman of Martha Stewart Living Omnimedia Inc. Mr. Koppelman, 65, came on board about two years ago to advise Mr. Jackson on his publishing holdings and other business matters. In an unusual twist, people close to the singer say the Bank of America loan package included a covenant requiring Mr. Koppelman be retained as a consultant. (Mr. Koppelman was also Mr. Jackson's chief rival in bidding for the ATV catalog 20 years ago.)
According to several people familiar with their thinking, all three of these men favored selling at least a portion of Sony/ATV to salvage Mr. Jackson's finances.
Early this year, a variety of possible deals were served up to the pop singer. Goldman Sachs Group Inc. and private-equity firm Blackstone Group expressed interest, according to people close to these discussions. Before acquiring Mr. Jackson's debt portfolio, investment firm Fortress also discussed buying at least some of Mr. Jackson's holdings, say people familiar with the discussions.
Messrs. Branca and Koppelman urged Mr. Jackson to accept the Goldman Sachs deal, people familiar with the matter say, which would have introduced Goldman as a third partner in the Sony/ATV venture. Mr. Jackson would have been left with a stake in his beloved publishing company and no debts.
But even as the criminal trial began in late February, Mr. Jackson continued to resist, partly on the grounds that publishing rights are always more valuable in the long run.
In early April, Bank of America lowered the boom. According to one person close to the Jackson camp, Mr. Jackson fell short of a scheduled payment by about $300,000. Other people close to the matter say Mr. Jackson had been in violation of his loan agreement for some time.
Bank of America officials found themselves inundated with pleas from the singer's advocates. Willie Gary, a prominent Florida litigator who has been retained by the singer, says he contacted the bank on Mr. Jackson's behalf. Mr. Burkle, the supermarket magnate, also contacted Bank of America officials and urged them to allow Mr. Jackson to make good on his missed payment before throwing the entire loan package into default. The advisers brought in a Los Angeles bankruptcy lawyer to cover a worst-case scenario.
In early April, Rev. Jackson called Kenneth Lewis, the chairman and CEO of Bank of America, to lobbyon behalf of the singer. Mr. Lewis declined to discuss the matter, recalls Rev. Jackson, on the grounds that the bank's relationship with the singer is confidential.
In an interview, Rev. Jackson says it was "a gross injustice" that the singer might have to sell his assets because of the shortfall. "Michael had a cashflow problem because he's not been working and he's on trial," Rev. Jackson says. "But his assets are greater than his debts."
Amid mounting pressure, Bank of America walked away from the situation without providing an explanation. The bank notified Mr. Jackson, via fax, it was selling the loan package to Fortress.
Founded in 1998, Fortress says it has about $15 billion in equity capital under management. The firm has a toe in the private-equity and hedge-fund worlds and also invests in distressed debt. It counts as investors pension funds and wealthy individuals. The firm bought the loans at face value, people involved in the matter said. Funds sometimes buy debt at a discount to compensate for any risk.
The firm has extended the loan beyond its original December due date, say people familiar with the matter, and has extended additional credit to Mr. Jackson.
Even if Mr. Jackson is acquitted and the problems with his debt resolved, his financial future will remain clouded. To get back on track, he would need to curb spending or again earn income as a performer -- goals that have proved elusive in the past. In addition, according to Rev. Jackson, the singer believes the men advising him "were in fact conspiring to take his holdings and that's what triggered this avalanche of challenges."
If the jury votes to convict, these questions may be moot. People close to Mr. Jackson on both sides of the debate say a conviction would likely trigger the sale of most if not all of his remaining assets, including Neverland, the Sony/ATV stake and the Mijac catalog. After listening to the 13-week trial, the jury has been deliberating since last Friday.
Write to Ethan Smith at ethan.smith@wsj.com and Kate Kelly at kate.kelly@wsj.com
By 2000, Mr. Jackson was on the hook for $270 million. Some of the debt was secured by Mr. Jackson's stake in Sony/ATV. Other loans were backed by Neverland and Mijac, a separate music-publishing firm that owns Mr. Jackson's compositions, among others.
According to the court documents, the debt supported a decidedly unconventional lifestyle. Expenses listed at the time included food for Neverland's animals, limousine rentals, costumes and $1.15 million in payments to "Debbie," a probable reference to Mr. Jackson's ex-wife, Debbie Rowe.
"Michael Jackson was -- and is -- a ticking financial timebomb, waiting to explode at any moment," Union Finance said in its suit.
In recent years, Mr. Jackson's financial situation worsened as his behavior grew more erratic. In 2002, he launched a public diatribe against then-Sony Music chief Thomas D. Mottola, calling him, "very, very, very devilish."
Attempts by some to steer the singer out of trouble were hampered by disagreements among the rotating cast of advisers. Among them was Mr. Branca, 54, a well-established Los Angeles music attorney whose clients include Aerosmith, Fleetwood Mac and Nelly. Mr. Branca, who has been involved with Mr. Jackson, on and off, since the early 1980s, owns a small stake in Sony/ATV, tied to Mr. Jackson's ownership, and negotiated most of the major contracts involved in the current struggle. For long stretches, he has found himself cut out of Mr. Jackson's affairs.
Also involved is Mr. Malnik, a 71-year-old Miami lawyer, who in 1980 was barred from entering casinos in New Jersey because of alleged organized-crime connections, which Mr. Malnik has previously denied. He could not be reached for comment. Mr. Malnik befriended Mr. Jackson several years ago, according to people who know them. The two men spent a weekend in Mexico with "Rush Hour" director Brett Ratner to celebrate Mr. Ratner's birthday, the director recalls.
Mr. Malnik brought in Mr. Koppelman, a storied figure in music publishing who is also vice chairman of Martha Stewart Living Omnimedia Inc. Mr. Koppelman, 65, came on board about two years ago to advise Mr. Jackson on his publishing holdings and other business matters. In an unusual twist, people close to the singer say the Bank of America loan package included a covenant requiring Mr. Koppelman be retained as a consultant. (Mr. Koppelman was also Mr. Jackson's chief rival in bidding for the ATV catalog 20 years ago.)
According to several people familiar with their thinking, all three of these men favored selling at least a portion of Sony/ATV to salvage Mr. Jackson's finances.
Early this year, a variety of possible deals were served up to the pop singer. Goldman Sachs Group Inc. and private-equity firm Blackstone Group expressed interest, according to people close to these discussions. Before acquiring Mr. Jackson's debt portfolio, investment firm Fortress also discussed buying at least some of Mr. Jackson's holdings, say people familiar with the discussions.
Messrs. Branca and Koppelman urged Mr. Jackson to accept the Goldman Sachs deal, people familiar with the matter say, which would have introduced Goldman as a third partner in the Sony/ATV venture. Mr. Jackson would have been left with a stake in his beloved publishing company and no debts.
But even as the criminal trial began in late February, Mr. Jackson continued to resist, partly on the grounds that publishing rights are always more valuable in the long run.
In early April, Bank of America lowered the boom. According to one person close to the Jackson camp, Mr. Jackson fell short of a scheduled payment by about $300,000. Other people close to the matter say Mr. Jackson had been in violation of his loan agreement for some time.
Bank of America officials found themselves inundated with pleas from the singer's advocates. Willie Gary, a prominent Florida litigator who has been retained by the singer, says he contacted the bank on Mr. Jackson's behalf. Mr. Burkle, the supermarket magnate, also contacted Bank of America officials and urged them to allow Mr. Jackson to make good on his missed payment before throwing the entire loan package into default. The advisers brought in a Los Angeles bankruptcy lawyer to cover a worst-case scenario.
In early April, Rev. Jackson called Kenneth Lewis, the chairman and CEO of Bank of America, to lobbyon behalf of the singer. Mr. Lewis declined to discuss the matter, recalls Rev. Jackson, on the grounds that the bank's relationship with the singer is confidential.
In an interview, Rev. Jackson says it was "a gross injustice" that the singer might have to sell his assets because of the shortfall. "Michael had a cashflow problem because he's not been working and he's on trial," Rev. Jackson says. "But his assets are greater than his debts."
Amid mounting pressure, Bank of America walked away from the situation without providing an explanation. The bank notified Mr. Jackson, via fax, it was selling the loan package to Fortress.
Founded in 1998, Fortress says it has about $15 billion in equity capital under management. The firm has a toe in the private-equity and hedge-fund worlds and also invests in distressed debt. It counts as investors pension funds and wealthy individuals. The firm bought the loans at face value, people involved in the matter said. Funds sometimes buy debt at a discount to compensate for any risk.
The firm has extended the loan beyond its original December due date, say people familiar with the matter, and has extended additional credit to Mr. Jackson.
Even if Mr. Jackson is acquitted and the problems with his debt resolved, his financial future will remain clouded. To get back on track, he would need to curb spending or again earn income as a performer -- goals that have proved elusive in the past. In addition, according to Rev. Jackson, the singer believes the men advising him "were in fact conspiring to take his holdings and that's what triggered this avalanche of challenges."
If the jury votes to convict, these questions may be moot. People close to Mr. Jackson on both sides of the debate say a conviction would likely trigger the sale of most if not all of his remaining assets, including Neverland, the Sony/ATV stake and the Mijac catalog. After listening to the 13-week trial, the jury has been deliberating since last Friday.
Write to Ethan Smith at ethan.smith@wsj.com and Kate Kelly at kate.kelly@wsj.com
On May 5, 2005 - RF wrote this about Malnik, Koppelman etc regarding the refinancing deal: http://www.foxnews.com/story/0,2933,155529,00.html
Koppelman, Branca were at the meeting at Beverly Hills in Jan 2004:
http://articles.latimes.com/2004/jan/14/entertainment/et-hubler14
marc_vivien
Proud Member
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muzikfactory is totally biased and full of hate
AnnieRUOkay89
Proud Member
MJ did not sever ties with Malnik until April 2005 - he was named along with Branca, Koppelman, Mottolla, Trudy Green, Kaufman & Ratner by
Carol Davis of Mark Geragos law firm on Justicesystem.net. That list was on MJJForum, jacksonaction, kopboard & I am sure many others. Here are links of discussion on kopboard:
http://www.mjj2005.com/kopboard/index.php?showtopic=5048&hl=trudy+green
http://www.mjj2005.com/kopboard/index.php?showtopic=20380&hl=trudy+green
Malnik, Branca & Koppelman were working on a Goldman Sachs deal during the trial & wanted MJ to sell all or part of the Sony catalog according to this article by Wall Street Journal.
Koppelman made the TV rounds before the trial about how MJ would still be successful, had many good years left. He was very positive, I remember him well.
link:
http://online.wsj.com/article_email/SB111819644592353818-Idje4NolaN4n5upbHuGca2Fm4.html
Michael Jackson's Other Battle:
Staving Off Financial Disaster
Lavish Expenses, Legal Bills
Could Force Asset Sale;
Lots of Conflicting Advice
Jesse Jackson Makes a Pitch
By ETHAN SMITH and KATE KELLY
Staff Reporters of THE WALL STREET JOURNAL
June 8, 2005; Page A1
In the glare of a Santa Maria, Calif., courtroom, pop singer Michael Jackson has been fending off criminal charges of child molestation that threaten his career and his freedom. Behind the scenes, the 46-year-old entertainer is embroiled in an equally critical battle over the future of his financial assets.
Mr. Jackson's other crisis is centered on a seemingly simple question. To escape at least $270 million in debt amassed in support of his unusual lifestyle, should Mr. Jackson sell his stake in a coveted music-publishing catalog?
The answer has not come easily. Mr. Jackson is surrounded by an ever-changing cast of characters, making it difficult to determine who, if anyone, is in charge of his business affairs. One camp has urged Mr. Jackson to sell some of his holding to avert financial disaster. Another group -- which includes supermarket billionaire Ron Burkle -- says such drastic action is unnecessary. More recently, the Rev. Jesse Jackson has emerged as an outspoken advocate for the singer and has personally interceded on his behalf with bank officials.
Meanwhile, according to a person close to the singer, Mr. Jackson's cash reserves ran so low earlier this year that he worried about paying his electric bill.
After two months of backstage maneuvering, Mr. Jackson is, as usual, in an odd spot. The financial fate of the former King of Pop now rests in the hands of a New York-based investment firm that invests in distressed debt. Last month, Fortress Investment Group LLC bought Mr. Jackson's loans outstanding from their holder, Bank of America Corp.
In a written statement, Jackson spokeswoman Raymone K. Bain said the agreement with Fortress "will provide greater financial strength and flexibility for Mr. Jackson."
The story of how Mr. Jackson was pushed to the brink of financial disaster is another strange turn for a performer whose 40 years in the public spotlight are filled with many such moments. After a series of high-profile incidents -- from settling a previous allegation of sexual abuse to being pictured dangling his infant son from a hotel balcony -- the singer finally wore out his welcome with the public. As his popularity plunged, Mr. Jackson used loans to compensate for declining income from record sales and concert tours.
The singer shells out more than $1.5 million a month in overhead costs, according to a person familiar with his finances. At the Neverland ranch in California -- named for the fantasy world in J. M. Barrie's "Peter Pan" -- Mr. Jackson spends thousands of dollars to maintain his menagerie of zoo animals, according to documents filed in a lawsuit unrelated to the criminal case and the current financial mess.
Mr. Jackson's financial affairs tumbled into disarray in early April when Bank of America notified him that he was in default on part of the loans. The notice set off a furious debate over his most valuable asset: a 50% stake in Sony/ATV Music Publishing LLC, an entity that owns and administers copyrights to thousands of songs, including the words and music to 251 Beatles tunes. The catalog, which Mr. Jackson co-owns with Sony Corp., was pledged as collateral for some of the loan portfolio.
Even in the depressed music industry, catalogs are prized for the steady revenue they generate from public performances and other licensing fees. Sony/ATV is particularly valuable because it controls famous Beatles compositions such as "Yesterday" and "Hey Jude" and is valued by people who have recently looked at the company at more than $1 billion. Mr. Jackson could resolve his debt crisis by shedding all or part of his stake.
This spring, that's exactly what some of his closest advisers were urging. The group included longtime associates such as entertainment attorney John G. Branca, veteran music-industry executive Charles A. Koppelman and Miami attorney Alvin I. Malnik. A long list of buyers has expressed interest in the business, according to several people involved with the matter. Sony itself has had its eye on Mr. Jackson's stake for years and ex-Beatle Paul McCartney has closely followed the company's history, according to a person close to him.
Even after the sale to Fortress, which forestalled a bigger financial crisis, these advisers continued to urge the singer to sell. They are worried about an estimated $10 million legal tab in the criminal case and a possible bankruptcy filing.
To his advisers, Mr. Jackson has expressed an emotional tie to the Sony/ATV asset -- he bought it partly out of love for the Beatles -- and has resisted that advice. Instead, he turned to a longtime friend, Mr. Burkle. As managing partner of closely held Yucaipa Cos. LLC, a private investment firm, Mr. Burkle has little music-industry experience.
According to Jesse Jackson, who has allied himself with Mr. Burkle, the billionaire adviser agreed to analyze the situation. Mr. Burkle has told the singer the debt crunch could be resolved in a way that would avoid a sale, according to a person close to Mr. Burkle.
Unknown is the current inclination of Mr. Jackson himself, who seems ill-prepared these days to make the call. In the past week, he has checked into a hospital twice and barricaded himself inside his ranch. There he awaits a verdict in the criminal case.
The son of a steel-mill worker from Gary, Ind., Michael Jackson became a quasi-professional pop singer at the age of 4 thanks to the efforts of his father, Joe. Teamed with four elder brothers in the Jackson 5, little Michael quickly became the star with his good looks, dance moves and preternaturally assured vocals. The group topped the charts with hits such as "ABC."
Mr. Jackson went solo in 1979 and quickly became one of the biggest pop stars in the world. His album "Thriller" spawned giant hits like "Beat It" and "Billie Jean." In the U.S., it has shipped more than 26 million units, according to the Recording Industry Association of America, making it the second-biggest selling album ever, after "Their Greatest Hits: 1971-1975," a record by the Eagles.
Even during Mr. Jackson's heady years, strange reports surfaced about his friendships with a chimpanzee named Bubbles and child stars a fraction of his age. Mr. Jackson hid behind surgical masks or umbrellas as his personal appearance grew increasingly odd. His dark skin paled and his sculpted facial features were increasingly unrecognizable as those of the boy who won pop fans' hearts.
Amid the tabloid fodder, Mr. Jackson made a canny business move. In 1985, after a protracted bidding process, he bought ATV Music Publishing for $47.5 million from Australian businessman Robert Holmes a Court. A decade later, with his music career in decline, Mr. Jackson needed cash. In 1995 he entered into a complex partnership with Sony to merge ATV with the Japanese company's modest library of songs. Sony already owned Mr. Jackson's record label, Epic Records.
Sony paid Mr. Jackson $150 million, according to one person close to the transaction, and the electronics giant took operational control, according to several people familiar with the arrangement. Mr. Jackson became a 50% owner of the newly created Sony/ATV.
Sony/ATV's structure grants Mr. Jackson veto power over key executive appointments and new acquisitions, say people familiar with the deal. The contract also grants both partners the right to counter any offer to buy out the other side. In addition, these people say, contractual provisions allow either party to bid for the half it doesn't Corp., seeking $12 million in unpaid fees and expenses, he began to borrow large sums of money. By 1998, documents show, loans totaling $90 million from NationsBank Corp. were nearly exhausted. NationsBank merged with BankAmerica Corp. in 1998, and the newly combined company renamed itself Bank of America Corp. Mr. Jackson later sought additional capital from Bank of America.
By 2000, Mr. Jackson was on the hook for $270 million. Some of the debt was secured by Mr. Jackson's stake in Sony/ATV. Other loans were backed by Neverland and Mijac, a separate music-publishing firm that owns Mr. Jackson's compositions, among others.
According to the court documents, the debt supported a decidedly unconventional lifestyle. Expenses listed at the time included food for Neverland's animals, limousine rentals, costumes and $1.15 million in payments to "Debbie," a probable reference to Mr. Jackson's ex-wife, Debbie Rowe.
"Michael Jackson was -- and is -- a ticking financial timebomb, waiting to explode at any moment," Union Finance said in its suit.
In recent years, Mr. Jackson's financial situation worsened as his behavior grew more erratic. In 2002, he launched a public diatribe against then-Sony Music chief Thomas D. Mottola, calling him, "very, very, very devilish."
Attempts by some to steer the singer out of trouble were hampered by disagreements among the rotating cast of advisers. Among them was Mr. Branca, 54, a well-established Los Angeles music attorney whose clients include Aerosmith, Fleetwood Mac and Nelly. Mr. Branca, who has been involved with Mr. Jackson, on and off, since the early 1980s, owns a small stake in Sony/ATV, tied to Mr. Jackson's ownership, and negotiated most of the major contracts involved in the current struggle. For long stretches, he has found himself cut out of Mr. Jackson's affairs.
Also involved is Mr. Malnik, a 71-year-old Miami lawyer, who in 1980 was barred from entering casinos in New Jersey because of alleged organized-crime connections, which Mr. Malnik has previously denied. He could not be reached for comment. Mr. Malnik befriended Mr. Jackson several years ago, according to people who know them. The two men spent a weekend in Mexico with "Rush Hour" director Brett Ratner to celebrate Mr. Ratner's birthday, the director recalls.
Mr. Malnik brought in Mr. Koppelman, a storied figure in music publishing who is also vice chairman of Martha Stewart Living Omnimedia Inc. Mr. Koppelman, 65, came on board about two years ago to advise Mr. Jackson on his publishing holdings and other business matters. In an unusual twist, people close to the singer say the Bank of America loan package included a covenant requiring Mr. Koppelman be retained as a consultant. (Mr. Koppelman was also Mr. Jackson's chief rival in bidding for the ATV catalog 20 years ago.)
According to several people familiar with their thinking, all three of these men favored selling at least a portion of Sony/ATV to salvage Mr. Jackson's finances.
Early this year, a variety of possible deals were served up to the pop singer. Goldman Sachs Group Inc. and private-equity firm Blackstone Group expressed interest, according to people close to these discussions. Before acquiring Mr. Jackson's debt portfolio, investment firm Fortress also discussed buying at least some of Mr. Jackson's holdings, say people familiar with the discussions.
Messrs. Branca and Koppelman urged Mr. Jackson to accept the Goldman Sachs deal, people familiar with the matter say, which would have introduced Goldman as a third partner in the Sony/ATV venture. Mr. Jackson would have been left with a stake in his beloved publishing company and no debts.
But even as the criminal trial began in late February, Mr. Jackson continued to resist, partly on the grounds that publishing rights are always more valuable in the long run.
In early April, Bank of America lowered the boom. According to one person close to the Jackson camp, Mr. Jackson fell short of a scheduled payment by about $300,000. Other people close to the matter say Mr. Jackson had been in violation of his loan agreement for some time.
Bank of America officials found themselves inundated with pleas from the singer's advocates. Willie Gary, a prominent Florida litigator who has been retained by the singer, says he contacted the bank on Mr. Jackson's behalf. Mr. Burkle, the supermarket magnate, also contacted Bank of America officials and urged them to allow Mr. Jackson to make good on his missed payment before throwing the entire loan package into default. The advisers brought in a Los Angeles bankruptcy lawyer to cover a worst-case scenario.
In early April, Rev. Jackson called Kenneth Lewis, the chairman and CEO of Bank of America, to lobbyon behalf of the singer. Mr. Lewis declined to discuss the matter, recalls Rev. Jackson, on the grounds that the bank's relationship with the singer is confidential.
In an interview, Rev. Jackson says it was "a gross injustice" that the singer might have to sell his assets because of the shortfall. "Michael had a cashflow problem because he's not been working and he's on trial," Rev. Jackson says. "But his assets are greater than his debts."
Amid mounting pressure, Bank of America walked away from the situation without providing an explanation. The bank notified Mr. Jackson, via fax, it was selling the loan package to Fortress.
Founded in 1998, Fortress says it has about $15 billion in equity capital under management. The firm has a toe in the private-equity and hedge-fund worlds and also invests in distressed debt. It counts as investors pension funds and wealthy individuals. The firm bought the loans at face value, people involved in the matter said. Funds sometimes buy debt at a discount to compensate for any risk.
The firm has extended the loan beyond its original December due date, say people familiar with the matter, and has extended additional credit to Mr. Jackson.
Even if Mr. Jackson is acquitted and the problems with his debt resolved, his financial future will remain clouded. To get back on track, he would need to curb spending or again earn income as a performer -- goals that have proved elusive in the past. In addition, according to Rev. Jackson, the singer believes the men advising him "were in fact conspiring to take his holdings and that's what triggered this avalanche of challenges."
If the jury votes to convict, these questions may be moot. People close to Mr. Jackson on both sides of the debate say a conviction would likely trigger the sale of most if not all of his remaining assets, including Neverland, the Sony/ATV stake and the Mijac catalog. After listening to the 13-week trial, the jury has been deliberating since last Friday.
Write to Ethan Smith at ethan.smith@wsj.com and Kate Kelly at kate.kelly@wsj.com
By 2000, Mr. Jackson was on the hook for $270 million. Some of the debt was secured by Mr. Jackson's stake in Sony/ATV. Other loans were backed by Neverland and Mijac, a separate music-publishing firm that owns Mr. Jackson's compositions, among others.
According to the court documents, the debt supported a decidedly unconventional lifestyle. Expenses listed at the time included food for Neverland's animals, limousine rentals, costumes and $1.15 million in payments to "Debbie," a probable reference to Mr. Jackson's ex-wife, Debbie Rowe.
"Michael Jackson was -- and is -- a ticking financial timebomb, waiting to explode at any moment," Union Finance said in its suit.
In recent years, Mr. Jackson's financial situation worsened as his behavior grew more erratic. In 2002, he launched a public diatribe against then-Sony Music chief Thomas D. Mottola, calling him, "very, very, very devilish."
Attempts by some to steer the singer out of trouble were hampered by disagreements among the rotating cast of advisers. Among them was Mr. Branca, 54, a well-established Los Angeles music attorney whose clients include Aerosmith, Fleetwood Mac and Nelly. Mr. Branca, who has been involved with Mr. Jackson, on and off, since the early 1980s, owns a small stake in Sony/ATV, tied to Mr. Jackson's ownership, and negotiated most of the major contracts involved in the current struggle. For long stretches, he has found himself cut out of Mr. Jackson's affairs.
Also involved is Mr. Malnik, a 71-year-old Miami lawyer, who in 1980 was barred from entering casinos in New Jersey because of alleged organized-crime connections, which Mr. Malnik has previously denied. He could not be reached for comment. Mr. Malnik befriended Mr. Jackson several years ago, according to people who know them. The two men spent a weekend in Mexico with "Rush Hour" director Brett Ratner to celebrate Mr. Ratner's birthday, the director recalls.
Mr. Malnik brought in Mr. Koppelman, a storied figure in music publishing who is also vice chairman of Martha Stewart Living Omnimedia Inc. Mr. Koppelman, 65, came on board about two years ago to advise Mr. Jackson on his publishing holdings and other business matters. In an unusual twist, people close to the singer say the Bank of America loan package included a covenant requiring Mr. Koppelman be retained as a consultant. (Mr. Koppelman was also Mr. Jackson's chief rival in bidding for the ATV catalog 20 years ago.)
According to several people familiar with their thinking, all three of these men favored selling at least a portion of Sony/ATV to salvage Mr. Jackson's finances.
Early this year, a variety of possible deals were served up to the pop singer. Goldman Sachs Group Inc. and private-equity firm Blackstone Group expressed interest, according to people close to these discussions. Before acquiring Mr. Jackson's debt portfolio, investment firm Fortress also discussed buying at least some of Mr. Jackson's holdings, say people familiar with the discussions.
Messrs. Branca and Koppelman urged Mr. Jackson to accept the Goldman Sachs deal, people familiar with the matter say, which would have introduced Goldman as a third partner in the Sony/ATV venture. Mr. Jackson would have been left with a stake in his beloved publishing company and no debts.
But even as the criminal trial began in late February, Mr. Jackson continued to resist, partly on the grounds that publishing rights are always more valuable in the long run.
In early April, Bank of America lowered the boom. According to one person close to the Jackson camp, Mr. Jackson fell short of a scheduled payment by about $300,000. Other people close to the matter say Mr. Jackson had been in violation of his loan agreement for some time.
Bank of America officials found themselves inundated with pleas from the singer's advocates. Willie Gary, a prominent Florida litigator who has been retained by the singer, says he contacted the bank on Mr. Jackson's behalf. Mr. Burkle, the supermarket magnate, also contacted Bank of America officials and urged them to allow Mr. Jackson to make good on his missed payment before throwing the entire loan package into default. The advisers brought in a Los Angeles bankruptcy lawyer to cover a worst-case scenario.
In early April, Rev. Jackson called Kenneth Lewis, the chairman and CEO of Bank of America, to lobbyon behalf of the singer. Mr. Lewis declined to discuss the matter, recalls Rev. Jackson, on the grounds that the bank's relationship with the singer is confidential.
In an interview, Rev. Jackson says it was "a gross injustice" that the singer might have to sell his assets because of the shortfall. "Michael had a cashflow problem because he's not been working and he's on trial," Rev. Jackson says. "But his assets are greater than his debts."
Amid mounting pressure, Bank of America walked away from the situation without providing an explanation. The bank notified Mr. Jackson, via fax, it was selling the loan package to Fortress.
Founded in 1998, Fortress says it has about $15 billion in equity capital under management. The firm has a toe in the private-equity and hedge-fund worlds and also invests in distressed debt. It counts as investors pension funds and wealthy individuals. The firm bought the loans at face value, people involved in the matter said. Funds sometimes buy debt at a discount to compensate for any risk.
The firm has extended the loan beyond its original December due date, say people familiar with the matter, and has extended additional credit to Mr. Jackson.
Even if Mr. Jackson is acquitted and the problems with his debt resolved, his financial future will remain clouded. To get back on track, he would need to curb spending or again earn income as a performer -- goals that have proved elusive in the past. In addition, according to Rev. Jackson, the singer believes the men advising him "were in fact conspiring to take his holdings and that's what triggered this avalanche of challenges."
If the jury votes to convict, these questions may be moot. People close to Mr. Jackson on both sides of the debate say a conviction would likely trigger the sale of most if not all of his remaining assets, including Neverland, the Sony/ATV stake and the Mijac catalog. After listening to the 13-week trial, the jury has been deliberating since last Friday.
Write to Ethan Smith at ethan.smith@wsj.com and Kate Kelly at kate.kelly@wsj.com
On May 5, 2005 - RF wrote this about Malnik, Koppelman etc regarding the refinancing deal: http://www.foxnews.com/story/0,2933,155529,00.html
Koppelman, Branca were at the meeting at Beverly Hills in Jan 2004:
http://articles.latimes.com/2004/jan/14/entertainment/et-hubler14
I don't get it? I didn't say when they severed ties, I said they severed ties once he found out Malnik had dealings with Made Men...Which is true, correct?