MJ: The $400 Million Man

Forbes magazine: Over the past two years, U2 has earned $320 million through its global tour. That makes them the highest-earning music group still alive. But in any case, the title of highest-earning musician—among the dead and the living—belongs to Michael Jackson. Since the untimely death of Jackson two years ago, the King of Pop’s foundation has generated $400 million in revenue. According to court documents, from July 2009 to December 2010, the foundation brought in $310 million. And Forbes estimates that from December 2010 to the present, an additional $90 million has been added to that income through global sales of the album Michael, sales of the This Is It DVD film, other contracts, broadcast rights, and reproduction rights. John Branca, a longtime friend and one of the foundation’s trustees, says: “Michael’s powerful and enduring global appeal is a testament to his status as the greatest entertainer of all time.” Branca adds that in the past two years, the foundation has had more than $1 billion in retail revenue. It’s not only Michael’s music that funnels such money into the foundation. Among his most valuable assets are songs and works by other musicians. In 1985, he spent $47.5 million to buy the publishing rights to 250 Beatles songs. Ten years later, Sony paid Michael $90 million to become a 50/50 partner with him in those publishing rights. That’s how the Sony/ATV publishing company was formed. Today, Sony and the Jackson Foundation are partners in this catalog, which now includes more than half a million songs. Songs by artists such as Bob Dylan, Elvis Presley, Eminem, and many others. Experts estimate the value of these publishing rights at around $1.5 billion. The annual income from these songs ranges between $50 and $100 million, and the Michael Jackson Foundation receives half. The foundation spent $159 million of its $310 million revenue through December 2010 on paying Michael’s debts, financing his children, and covering the costs of his memorial and burial. John Branca and John McClain, the other trustees, have been spending their time closing new contracts that generate even more income—or covering current expenses. There’s no doubt that the foundation continues to profit from the wave of enthusiasm for Michael Jackson that has risen in the world as a result of nostalgia for losing him. Maybe an average annual income of $200 million sounds unlikely, but by looking at other deals in progress—such as the Cirque du Soleil tour opening this fall—you can expect annual revenue of between $75 and $100 million. And that’s more than what Justin Bieber, Katy Perry, and Kanye West earned in a year. “Cash flow from the foundation in a single year is very impressive,” says Donald David, an attorney and financial trustee for rapper Tupac Shakur. “Of course, this income will eventually decline over time. But in the foreseeable future, the figure will be staggering. Even the grandchildren of Michael’s children will benefit before the money runs out.” Source: eMJey.com / forbes.com