Jackson estate under review

Lawyers for Michael Jackson’s parents evaluating 2002 will
Harriet Ryan
June 30, 2009
Los Angeles Times
http://latimesblogs.latimes.com/lanow/2009/06/lawyers-for-michael-jacksons-parents-evaluating-2002-will.html
Legal advisers for Michael Jackson’s parents are evaluating a 2002 will that surfaced recently in the possession of a longtime associate of the performer, their lead attorney said today.

“I just saw the will for the first time this morning. We are in the process of reviewing it. We did not see it prior to the filing. We wish we had known about it earlier,” said attorney L. Londell McMillan.

In court papers filed Monday seeking temporary control of Jackson’s estate, Katherine Jackson’s lawyers checked a box indicating that the singer died without a will, but they also acknowledged in the filings reports of at least one other will.

“It was important for Mrs. Jackson to proactively take legal action and protect the well-being of the children and the personal property and belongings” of her son, McMillan said.

The July 2002 will that was apparently in the possession of John Branca, an entertainment attorney whose relationship with Jackson dates back to 1980, named his 79-year-old mother as guardian of his three children and appointed as executors Branca and John McClain, a music executive whom knew Jackson since the age of 10, a source familiar with the document said.

McMillan declined to comment on a Wall Street Journal story that said the will split Jackson’s assets among his mother, children and one or more charities. The lawyer said it was “a good thing” and “part of the process” for those who had worked with the performer to produce documents related to his estate.

“Mr. Jackson had a series of lawyers over time, and part of our challenge is to make contact with each and every one of those advisers to review their files,” he said.

McMillan said he represented Jackson in the 3 1/2 years leading up to his death. Branca stopped working with Jackson in 2006 in a move he later blamed on the presence in the singer’s inner circle of “people who really didn’t have his best interests at heart.” He reportedly returned to Jackson’s team a week before he died.

McMillan said the entertainer never told him he had rehired Branca, but said, “It’s possible.”

Jackson Will From 2002 In Spotlight
Ethan Smith
June 30, 2009
The Wall Street Journal
http://online.wsj.com/article/SB124632881534571569.html
A will drafted by Michael Jackson in 2002 which divides the singer’s estate among his mother, three children and one or more charities could play a central role in determining how his tangled financial relationships will be unwound.

Several people close to the late Mr. Jackson said that a lawyer for the pop singer could submit the will, believed to be his last, to Los Angeles Superior Court as soon as Thursday. That filing would cap a tense period in which relatives and advisers of the late singer debated what document, if any, was valid.

One or two other earlier wills have emerged since Mr. Jackson’s death last Thursday, according to people familiar with the situation. The Associated Press reported that Mr. Jackson’s parents, Joseph and Katherine Jackson, said in a Monday court filing that they believed the singer had died without a valid will. Joseph Jackson isn’t believed to be included in the most recent will.

In an email message, a lawyer for Mr. Jackson’s parents said neither he nor his clients had seen the 2002 will. “No will has been presented to family or us,” wrote the lawyer, L. Londell McMillan, who also once represented Michael Jackson. “We will review any will when we see it.”

Mr. McMillan said that he had spent much of Monday trying to ensure that Mr. Jackson’s mother would receive custody of the singer’s three children. A Los Angeles court on Monday granted her temporary custody pending a hearing in July. Mr. McMillan said the family is “pleased” with that decision. It wasn’t clear what custody arrangements are called for by the 2002 will.

This will names as executors lawyer John Branca and a veteran music executive named John McClain who was also a friend of Mr. Jackson. Mr. Branca, who served as Mr. Jackson’s primary attorney between 1980 and 2006, wrote the will. Mr. Jackson had rehired Mr. Branca the week before his death last Thursday. Mr. Branca didn’t respond to requests for comment Monday; Mr. McClain couldn’t be reached.

Unwinding Mr. Jackson’s estate is likely to be a thorny challenge, given the size and complexity of both the assets and the debts involved. In all, Mr. Jackson died with around $500 million debt, but the value of his assets probably outweigh that, possibly by $200 million or more, according to people familiar with the matter.

Mr. Jackson’s most valuable asset is believed to be his 50% stake in Sony/ATV Music Publishing, a joint venture with Sony Corp. That stake is collateral for a $300 million loan held by Barclays PLC. And Mr. Jackson’s level of control over the venture was reduced in a 2006 refinancing. For instance, he no longer has veto power over key executive appointments, according to people familiar with the situation. Sony also has the right to buy half of Mr. Jackson’s 50% stake when it chooses.

Mr. Jackson’s other assets include Mijac, a publishing catalog that comprises his own musical composition that is collateral for a separate $73 million loan. And control of the master recordings of his albums, currently in the hands of Sony, is set to revert to him in five years, according to people familiar with the matter.

But Mr. Jackson last year defaulted on a $24.5 million loan backed by another major component of his portfolio, Neverland Valley Ranch. He then became a partner in a venture — Sycamore Valley Ranch Co., LLC — that now owns the property. It is not clear what will become of the property once the will is executed.

Apart from the wrangling over the will, funeral arrangements also remained a subject of debate among family members, with logistical and other issues contributing to apparent gridlock in planning, according to people familiar with the situation.

At a news conference Monday morning outside the family’s home in Encino, Calif., Joseph Jackson was asked whether funeral arrangements had been made. “We’re not ready for that yet,” the elder Mr. Jackson said, repeating the words of Rev. Al Sharpton, who stood at his side.

Also on Monday, concert promoter AEG Live unveiled plans to refund the $85 million worth of tickets it sold for the 50 concerts Mr. Jackson planned to give in London starting July 13. Buyers will be given a choice between receiving a cash refund, including service fees, or a ticket as a sourvenir.

A spokesman for AEG, a division of Anschutz Corp., said that any cash that remains unclaimed would go toward covering its production costs, which are estimated to be above $20 million. Profits beyond that would go to Mr. Jackson’s estate, the spokesman added. It wasn’t clear how much, if any, of its insurance coverage AEG is likely to collect.

Concert Promoter:  The Jackson Tour May Go On
June 30, 2009
FOX News.com
http://www.foxnews.com/story/0,2933,529606,00.html
The head of the promotion company behind Michael Jackson’s 50-night “This is It” concert extravaganza says he’d like the concerts to go on.

In an exclusive interview with SKY News, Randy Philips said he would like the Jackson family to be on stage and take part in the show, with celebrity friends of the late icon rotating as stand ins for Jackson.

On Monday, the concert promoters announced that 750,000 Michael Jackson fans could get full refunds for the pop star’s canceled 50-night “This is It” concert extravaganza — or opt to receive souvenir tickets instead.

If the show is indeed canceled, the move could help recoup some of AEG’s losses from the ill-fated tour. Fans could choose to receive the actual tickets, which it said feature graphics “inspired and designed” by Jackson himself.

Fans spent more than $90 million on tickets, which were priced between $82 and $124, though some went for hundreds of dollars on Internet auction sites.

Jackson’s death has left AEG Live, which operates the 02 Arena where the pop star was to have performed, with a colossal problem.

In addition to the money taken in by ticket sales, which must be refunded if canceled, the company had already paid Jackson millions and spent millions more getting ready for the planned July 13 premiere — not to mention that one of the city’s biggest arenas has been left with 50 open nights.

The skirmishing over refunds and open bookings is just one aspect of what is likely to be years of legal wrangling over financial matters, including Jackson’s considerable debts, assets and custody of his three children. The battles are likely to dwarf earlier fights for the control of assets left by other departed rock gods, including guitar hero Jimi Hendrix and reggae trailblazer Bob Marley.

Promoters are generally required to take out insurance to cover concert cancellations or non-appearances, said Malcolm Tarling, a spokesman for the Association of British Insurers.

Many of the policies are extremely specific, allocating levels of payouts according to the reason for the cancellation — including the cause of any death. If a drug overdose was specified as a risk with lower coverage, AEG may be entitled to less money.

Still, Phillips told SKY that financially, his company was fine and he was awaiting news about the funeral of Michael Jackson.

Phillips says he believes Jackson’s comeback would have been one of the best arena shows ever produced. He says a video of Jackson’s rehearsals for the tour does exist.

He says Jackson said he believed he was ready for the 50 sold-out performances at London’s O2 arena.

The Associated Press contributed to this report.