Who will profit from Michael Jackson's death?
Posted
Jul 06 2009, 11:56 AM
by
Catherine Holahan
Rating:
Michael Jackson had plenty of fans among investors. But, many are now discovering that a bet on the global icon's fame and future earning power was a far riskier proposition than they had believed.
The iconic performer's death has reportedly left financial firms such as Colony Capital, Fortress Investment Group and Barclays Bank in creditor's limbo, according to a recent Associated Press article. Jackson reportedly had $331 million in outstanding debts when he died, but had assets totaling more than $567 million.
The financial firms, some of which lent Jackson money on the belief that he could easily pay them back with revenue made from future tours and music sales, are now awaiting the division of his estate. Today, a Los Angeles judge ruled that Jackson's attorney and friend John Branca should oversee the distribution of Jackson's remaining assets.
While some investors are only hoping to be paid back, others are undoubtedly hoping to profit from the singer's death. Assets such as the singer's music catalog and Neverland ranch could be worth far more overtime than their current selling price. The ranch, in particular, is more valuable than the now depressed value of its California land would indicate.
Jackson's massive Santa Barbara property -- which is part amusement park, part home, and almost certainly eventual tourist attraction -- could prove to be worth more than Elvis Presley's Graceland. Elvis Presley's estate earned more than $52 million in 2007, according to Forbes' annual list of top earning dead celebrities. Neverland is owned by a joint venture between Jackson and an arm of Colony Capital. It was sold to the group after Jackson reportedly defaulted on a $23 million loan from Colony Capital for which he had put up Neverland as collateral.
Jackson reportedly told friends that he wanted to be buried at the ranch, strengthening the argument for turning the mansion into a mecca, of sorts, for fans.
A memorial service is scheduled to be held at Los Angeles' Staples center on Tuesday. Tickets were awarded by a lottery. Scalpers have already started to offer the tickets online for as much as $25,000.
Related:
Could Jackson's death save LA's econony?
