Michael Jackson to lose Beatles catalog?

[derby378]

Guilty or not guilty, Michael Jackson appears to be sinking deeper and deeper into a financial hole that may cost him his lucrative stake in the Beatles music catalog as well as the rights to his own platinum-selling songs.

At Jackson's child-molestation trial in Central California, now in the hands of a jury, government witnesses testified that the legendary pop star is facing a severe cash crunch. Likely his most valuable asset: the Beatles song rights he bought in the 1980s for about $48 million, now estimated to be worth $400 million or more.

Bank of America, the nation's No. 2 bank, provided further evidence of a financial crisis when it recently sold two Jackson loans valued at $270 million to a private hedge fund, according to people familiar with the transaction.

To secure the Bank of America loans, Jackson offered as collateral his 50 percent stake in a Sony partnership that holds copyrights to more than 200 Beatles songs. The loans were also backed by Jackson's own music library and a partial deed on his Neverland Ranch near Santa Barbara, Calif.

Technically Jackson has defaulted on loan payments, one of the sources said.

Typically, when a debtor defaults or is about to default on a loan, terms are renegotiated. Another option is for the lender to sell the loan -- and the collateral that comes with it -- to another party. Bank of America chose to sell the loans to the hedge fund, New York-based Fortress Investment Group.

Depending on negotiations with Fortress, the risk that Jackson could lose the copyrights to the Beatles songs as well as his own hit recordings is real.

http://money.cnn.com/2005/06/08/news/newsmakers/jackson_loan/index.htm?cnn=yes

[Ravenseye]

1. Why am I not surprised?

I saw that documentary and it just seems like he spends money like it's growing on trees at his ranch. I knew he had a significant amount of money coming in, but I just couldn't imagine it was enough to burn it the way he does.

[Wickerman]

2. unfortunate

for the memory of the Beatles. At least with Jackson as shepard the songs were not exploited in advertising as viciously as corporate America will.

[Mike Daniels]

4. You have to be kidding.....

The guy licensed "Revolution" to Nike or Adidas for a shoe commmerical as soon as he had possession of the catalogue.

I gather it was only the subsequent outrage from music and Beatles fans that kept him from doing anything that insane thereafter.

[SteppingRazor]

6. I think Wickerman has to be kidding, Mike...

I mean, "Revolution" is just the tip of the iceberg. If you really think about it, how many times in the last few years have you heard Beatles songs (not actually sung by the Beatles, of course) in commercials?

[Wickerman]

8. kidding, no, fearful of the future

you haven't even begun to hear the Beatles. When was the last time Corporate America was known for its subtlety.

Yes, I recall the Nike ads, the Beatle's covers, etc, but I still say ya ain't seen nothing at all yet.

Yeah, Mike has exploited the catalog, but not anywhere near what you will see in the future.

[misanthrope]

12. The likely reason...

...you haven't heard them used more isn't due to Jackson's discretion, but more to the price tag he puts on usage.

[leveymg]

3. A commercial motive for the prosecution? Not that I believe he's

really innocent, but there are some powerful interests that stand to benefit from the trial.:bounce:

[mtnester]

5. Hopefully, he will do the right thing and offer it to Sir Paul

whom he stole it from first.

<snip>
McCartney's friendship with Jackson was shortlived, however. Not long afterwards, Jackson paid a huge sum to acquire the Northern Songs catalogue, which included the publishing rights to all the Beatles' songs. Although McCartney subsequently approached Jackson hoping to negotiate an increase in his royalty rate, he was rebuffed. In an interview in MOJO magazine, McCartney told how he phoned Jackson and argued that, had he been a simple employee, he would surely have been entitled to a raise, considering the great success he had generated for the company. Jackson reportedly answered "Oh Paul, that's just business" and hung up. They have apparently never spoken since then. http://paul-mccartney.biography.ms/

[johnaries]

7. I remember Tom Snyder interviewing Sir Paul, and showed him

a magazine ad for coffee with lyrics from A Day in the Life "..I went downstairs and drank a cup...". Paul had written those particular lyrics, and they were used without his permission - because he no longer owned them. He didn't even know about the ad.
He was heartbroken.

[freeplessinseattle]

9. as if I could despise MJ even more, but I do now (nt)

[KharmaTrain]

10. That Catalog Is Worth MoreThan $500 million

I think a lot depends on how Wacko Jacko has been with his money all these years. While his property and catalogue will surely depreciate, if they haven't already, the Beatles catalogue is a gift that keeps on giving. No matter how screwy Jacko is, no on associates the catalogue with him and it's value is as strong today as ever.

Beatle CDs continue to be big sellers as are the various rights to the music that are used by club performers, schools and other organizations and this is where a lot of money is made. So much is what you don't see than what you do.

I would imagine Jackson's ranch and other assets would cover enough of any defaulted loan that the annual royalties of that catologue would cover the rest. A fair bankruptcy judge would see this as well...and as it would be a sure form of restitution could put a lien on profits from that catalogue and make it less desireable for a third-party to want...even Sir Paul.

While I regretted Jackson getting his hands on the library, Lennon & McCartney never truly owned their songs...they were licensed through a guy by the name of Dick James...he's the one who sold the rights to Jackson.

[Borgnine]

11. Great.

As a Beatles nut, there's nothing that bugs me more than hearing "the Long and Wind Road" in a car insuarance ad or those insufferable "kids sing the songs of the Beatles" CDs.