Jackson to Sell Stake In Beatles Catalog, From Fox News Options

[jonerik]

Jacko Must Make Beatles Sale
Thursday, April 14, 2005
By Roger Friedman

A deal to salvage Michael Jackson's perilous financial situation is at hand. I can tell you exclusively that the deal Jackson is being offered must be signed in the next few days or he really will have his proverbial head on the chopping block.

I'm told Jackson will likely be presented with a deal sculpted by what I call his “permanent government” of lawyers and advisers, not the many shady characters who've come and gone over the years. This group includes music publisher Charles Koppelman (who's also on the boards of Martha Stewart and Steve Madden's companies), attorneys John Branca and Al Malnik, Jane Heller of Bank of America, and private investors represented by Goldman Sachs.

First the deal: Sources say Jackson will be selling most of his 50% interest in Sony/ATV Music Publishing, aka the Beatles catalog. In return, all his debts will be paid off, including $270 million in loans from Bank of America, all the debt piled up at his Neverland Valley Ranch, and all loans against his own Mijac Music Publishing, the catalog that includes his hits like "Billie Jean" and "Beat It," as well songs by Sly and the Family Stone and others.

Jackson will wind up with somewhere in neighborhood of $10 million in cash, I am told. He will retain ownership of all his tchotchkes including the $2 million King Kalla diamond watch he had to buy from David Orgell jewelers. He will still reap a $7-8 million annual income as well. He'll also get some income from Sony/ATV. Sources point out that Mijac is now worth around $100 million, which will be a better asset once it's unencumbered.

Jackson's immediate plan, if he accepts the deal, is to downsize his Neverland costs. This would mean eliminating the zoo and cutting back the carnival. Ultimately, the wisest thing to do — should he be acquitted — is sell the ranch and move to a more reasonably sized estate with lower maintenance fees attached. Of course, the pending plan does not include money he owes to ex-wife Debbie Rowe. Jackson ceased paying alimony to her last year, but is involved in a court fight over that and custody.

One easy remedy to his financial woes, of course, would be to stop incurring overwhelming legal fees. I'm also told that Jackson is once again without legal counsel for his business deals. The reason? As with most of his problems recently, Jackson did not pay the lawyer who represented him in this deal, sources say.

I am told there is some urgency to Jackson signing this deal. Bank of America has, according to sources, lost its patience over his mounting debt. If for some reason he doesn't accept this latest proposal, I am told that he will really be in a dire situation.

Jackson, mind you, is not apt to sign this deal. Insiders tell me that he's encouraged his fans to spread the word that he's the victim of a “conspiracy” against him. “Michael doesn't want people to think he lost the Beatles,” says a longtime friend. “He wants his fans to think it was stolen from him. He has to be the victim.”

My sources also say that Jackson considers Branca one of the “conspirators” since his former attorney would reap a 5 percent commission on this sale — almost three times as much money as Jackson will make. But push has come to shove, to use a cliché, and Jackson is unlikely to find a better deal.

[FiTzY]

Douchebag should give em to McCartney and Ringo.

[Big Martha]

If Chuck Koppelman is involved, Jacko's getting a big golden fist right up his little ass on this deal. Chucky is a beast I saw this deal coming 20 miles away.