Like I said, if that was true they would had presented it in court by now if Brance was such a fraud. So far, silence. They have over four mouths, they should had found something by now, unless Brance is some type of evil genius.
You keep supporting the family even though they too wanted Michael to sell the catalogue several times in the past. Randy going as far as to make him sign it away while he was on trial, which had to be the lowest point of Michael's life. So by you logic, the family should not be trusted as well. You cannot have it both ways. Unless you are trying to tell me that if the family sells the catalogue, it is okay because their are family.
Also, if Michael did not trust Brance, then why is god's name is his name in both the 2002 and 1997 will. If you forge a will, why would you make a second one? So you can add the extra child and make it look more real? No, too much of a risk of being caught, unless they are all morons.
I don't think MJ trusted Branca, Malnik or Koppelman. MJ was obviously in a cashflow bind during that time period financially as well as being on trial. Randy had apparently found a deal for MJ with Stabler & Dash? at Prescient? as I recall (not in this article) and Branca , Malnik & Koppelman had a Goldman Sachs deal which included selling at least a part of the catalog. Burkle came up with another way which worked without having to sell the catlog. Here is an interesting article about what was going on:
Lots of Conflicting Advice
Jesse Jackson Makes a Pitch
By ETHAN SMITH and KATE KELLY
Staff Reporters of THE WALL STREET JOURNAL
June 8, 2005; Page A1
In the glare of a Santa Maria, Calif., courtroom, pop singer Michael Jackson has been fending off criminal charges of child molestation that threaten his career and his freedom. Behind the scenes, the 46-year-old entertainer is embroiled in an equally critical battle over the future of his financial assets.
Mr. Jackson's other crisis is centered on a seemingly simple question. To escape at least $270 million in debt amassed in support of his unusual lifestyle, should Mr. Jackson sell his stake in a coveted music-publishing catalog?
The answer has not come easily. Mr. Jackson is surrounded by an ever-changing cast of characters, making it difficult to determine who, if anyone, is in charge of his business affairs. One camp has urged Mr. Jackson to sell some of his holding to avert financial disaster. Another group -- which includes supermarket billionaire Ron Burkle -- says such drastic action is unnecessary. More recently, the Rev. Jesse Jackson has emerged as an outspoken advocate for the singer and has personally interceded on his behalf with bank officials.
Meanwhile, according to a person close to the singer, Mr. Jackson's cash reserves ran so low earlier this year that he worried about paying his electric bill.
After two months of backstage maneuvering, Mr. Jackson is, as usual, in an odd spot. The financial fate of the former King of Pop now rests in the hands of a New York-based investment firm that invests in distressed debt. Last month, Fortress Investment Group LLC bought Mr. Jackson's loans outstanding from their holder, Bank of America Corp.
In a written statement, Jackson spokeswoman Raymone K. Bain said the agreement with Fortress "will provide greater financial strength and flexibility for Mr. Jackson."
The story of how Mr. Jackson was pushed to the brink of financial disaster is another strange turn for a performer whose 40 years in the public spotlight are filled with many such moments. After a series of high-profile incidents -- from settling a previous allegation of sexual abuse to being pictured dangling his infant son from a hotel balcony -- the singer finally wore out his welcome with the public. As his popularity plunged, Mr. Jackson used loans to compensate for declining income from record sales and concert tours.
The singer shells out more than $1.5 million a month in overhead costs, according to a person familiar with his finances. At the Neverland ranch in California -- named for the fantasy world in J. M. Barrie's "Peter Pan" -- Mr. Jackson spends thousands of dollars to maintain his menagerie of zoo animals, according to documents filed in a lawsuit unrelated to the criminal case and the current financial mess.
Mr. Jackson's financial affairs tumbled into disarray in early April when Bank of America notified him that he was in default on part of the loans. The notice set off a furious debate over his most valuable asset: a 50% stake in Sony/ATV Music Publishing LLC, an entity that owns and administers copyrights to thousands of songs, including the words and music to 251 Beatles tunes. The catalog, which Mr. Jackson co-owns with Sony Corp., was pledged as collateral for some of the loan portfolio.
Even in the depressed music industry, catalogs are prized for the steady revenue they generate from public performances and other licensing fees. Sony/ATV is particularly valuable because it controls famous Beatles compositions such as "Yesterday" and "Hey Jude" and is valued by people who have recently looked at the company at more than $1 billion. Mr. Jackson could resolve his debt crisis by shedding all or part of his stake.
This spring, that's exactly what some of his closest advisers were urging. The group included longtime associates such as entertainment attorney John G. Branca, veteran music-industry executive Charles A. Koppelman and Miami attorney Alvin I. Malnik. A long list of buyers has expressed interest in the business, according to several people involved with the matter. Sony itself has had its eye on Mr. Jackson's stake for years and ex-Beatle Paul McCartney has closely followed the company's history, according to a person close to him.
Even after the sale to Fortress, which forestalled a bigger financial crisis, these advisers continued to urge the singer to sell. They are worried about an estimated $10 million legal tab in the criminal case and a possible bankruptcy filing.
To his advisers, Mr. Jackson has expressed an emotional tie to the Sony/ATV asset -- he bought it partly out of love for the Beatles -- and has resisted that advice. Instead, he turned to a longtime friend, Mr. Burkle. As managing partner of closely held Yucaipa Cos. LLC, a private investment firm, Mr. Burkle has little music-industry experience.
According to Jesse Jackson, who has allied himself with Mr. Burkle, the billionaire adviser agreed to analyze the situation. Mr. Burkle has told the singer the debt crunch could be resolved in a way that would avoid a sale, according to a person close to Mr. Burkle.
Unknown is the current inclination of Mr. Jackson himself, who seems ill-prepared these days to make the call. In the past week, he has checked into a hospital twice and barricaded himself inside his ranch. There he awaits a verdict in the criminal case.
The son of a steel-mill worker from Gary, Ind., Michael Jackson became a quasi-professional pop singer at the age of 4 thanks to the efforts of his father, Joe. Teamed with four elder brothers in the Jackson 5, little Michael quickly became the star with his good looks, dance moves and preternaturally assured vocals. The group topped the charts with hits such as "ABC."
Mr. Jackson went solo in 1979 and quickly became one of the biggest pop stars in the world. His album "Thriller" spawned giant hits like "Beat It" and "Billie Jean." In the U.S., it has shipped more than 26 million units, according to the Recording Industry Association of America, making it the second-biggest selling album ever, after "Their Greatest Hits: 1971-1975," a record by the Eagles.
Even during Mr. Jackson's heady years, strange reports surfaced about his friendships with a chimpanzee named Bubbles and child stars a fraction of his age. Mr. Jackson hid behind surgical masks or umbrellas as his personal appearance grew increasingly odd. His dark skin paled and his sculpted facial features were increasingly unrecognizable as those of the boy who won pop fans' hearts.
Amid the tabloid fodder, Mr. Jackson made a canny business move. In 1985, after a protracted bidding process, he bought ATV Music Publishing for $47.5 million from Australian businessman Robert Holmes a Court. A decade later, with his music career in decline, Mr. Jackson needed cash. In 1995 he entered into a complex partnership with Sony to merge ATV with the Japanese company's modest library of songs. Sony already owned Mr. Jackson's record label, Epic Records.
Sony paid Mr. Jackson $150 million, according to one person close to the transaction, and the electronics giant took operational control, according to several people familiar with the arrangement. Mr. Jackson became a 50% owner of the newly created Sony/ATV.
Sony/ATV's structure grants Mr. Jackson veto power over key executive appointments and new acquisitions, say people familiar with the deal. The contract also grants both partners the right to counter any offer to buy out the other side. In addition, these people say, contractual provisions allow either party to bid for the half it doesn't own.
But the Sony deal didn't solve Mr. Jackson's growing financial problems. According to a 2002 suit filed in California Superior Court by Union Finance & Investment Corp., seeking $12 million in unpaid fees and expenses, he began to borrow large sums of money. By 1998, documents show, loans totaling $90 million from NationsBank Corp. were nearly exhausted. NationsBank merged with BankAmerica Corp. in 1998, and the newly combined company renamed itself Bank of America Corp. Mr. Jackson later sought additional capital from Bank of America.
By 2000, Mr. Jackson was on the hook for $270 million. Some of the debt was secured by Mr. Jackson's stake in Sony/ATV. Other loans were backed by Neverland and Mijac, a separate music-publishing firm that owns Mr. Jackson's compositions, among others.
According to the court documents, the debt supported a decidedly unconventional lifestyle. Expenses listed at the time included food for Neverland's animals, limousine rentals, costumes and $1.15 million in payments to "Debbie," a probable reference to Mr. Jackson's ex-wife, Debbie Rowe.
"Michael Jackson was -- and is -- a ticking financial timebomb, waiting to explode at any moment," Union Finance said in its suit.
In recent years, Mr. Jackson's financial situation worsened as his behavior grew more erratic. In 2002, he launched a public diatribe against then-Sony Music chief Thomas D. Mottola, calling him, "very, very, very devilish."
Attempts by some to steer the singer out of trouble were hampered by disagreements among the rotating cast of advisers. Among them was Mr. Branca, 54, a well-established Los Angeles music attorney whose clients include Aerosmith, Fleetwood Mac and Nelly. Mr. Branca, who has been involved with Mr. Jackson, on and off, since the early 1980s, owns a small stake in Sony/ATV, tied to Mr. Jackson's ownership, and negotiated most of the major contracts involved in the current struggle. For long stretches, he has found himself cut out of Mr. Jackson's affairs.
Also involved is Mr. Malnik, a 71-year-old Miami lawyer, who in 1980 was barred from entering casinos in New Jersey because of alleged organized-crime connections, which Mr. Malnik has previously denied. He could not be reached for comment. Mr. Malnik befriended Mr. Jackson several years ago, according to people who know them. The two men spent a weekend in Mexico with "Rush Hour" director Brett Ratner to celebrate Mr. Ratner's birthday, the director recalls.
Mr. Malnik brought in Mr. Koppelman, a storied figure in music publishing who is also vice chairman of Martha Stewart Living Omnimedia Inc. Mr. Koppelman, 65, came on board about two years ago to advise Mr. Jackson on his publishing holdings and other business matters. In an unusual twist, people close to the singer say the Bank of America loan package included a covenant requiring Mr. Koppelman be retained as a consultant. (Mr. Koppelman was also Mr. Jackson's chief rival in bidding for the ATV catalog 20 years ago.)
According to several people familiar with their thinking, all three of these men favored selling at least a portion of Sony/ATV to salvage Mr. Jackson's finances.
Early this year, a variety of possible deals were served up to the pop singer. Goldman Sachs Group Inc. and private-equity firm Blackstone Group expressed interest, according to people close to these discussions. Before acquiring Mr. Jackson's debt portfolio, investment firm Fortress also discussed buying at least some of Mr. Jackson's holdings, say people familiar with the discussions.
Messrs. Branca and Koppelman urged Mr. Jackson to accept the Goldman Sachs deal, people familiar with the matter say, which would have introduced Goldman as a third partner in the Sony/ATV venture. Mr. Jackson would have been left with a stake in his beloved publishing company and no debts.
But even as the criminal trial began in late February, Mr. Jackson continued to resist, partly on the grounds that publishing rights are always more valuable in the long run.
In early April, Bank of America lowered the boom. According to one person close to the Jackson camp, Mr. Jackson fell short of a scheduled payment by about $300,000. Other people close to the matter say Mr. Jackson had been in violation of his loan agreement for some time.
Bank of America officials found themselves inundated with pleas from the singer's advocates. Willie Gary, a prominent Florida litigator who has been retained by the singer, says he contacted the bank on Mr. Jackson's behalf. Mr. Burkle, the supermarket magnate, also contacted Bank of America officials and urged them to allow Mr. Jackson to make good on his missed payment before throwing the entire loan package into default. The advisers brought in a Los Angeles bankruptcy lawyer to cover a worst-case scenario.
In early April, Rev. Jackson called Kenneth Lewis, the chairman and CEO of Bank of America, to lobbyon behalf of the singer. Mr. Lewis declined to discuss the matter, recalls Rev. Jackson, on the grounds that the bank's relationship with the singer is confidential.
In an interview, Rev. Jackson says it was "a gross injustice" that the singer might have to sell his assets because of the shortfall. "Michael had a cashflow problem because he's not been working and he's on trial," Rev. Jackson says. "But his assets are greater than his debts."
Amid mounting pressure, Bank of America walked away from the situation without providing an explanation. The bank notified Mr. Jackson, via fax, it was selling the loan package to Fortress.
Founded in 1998, Fortress says it has about $15 billion in equity capital under management. The firm has a toe in the private-equity and hedge-fund worlds and also invests in distressed debt. It counts as investors pension funds and wealthy individuals. The firm bought the loans at face value, people involved in the matter said. Funds sometimes buy debt at a discount to compensate for any risk.
The firm has extended the loan beyond its original December due date, say people familiar with the matter, and has extended additional credit to Mr. Jackson.
Even if Mr. Jackson is acquitted and the problems with his debt resolved, his financial future will remain clouded. To get back on track, he would need to curb spending or again earn income as a performer -- goals that have proved elusive in the past.
In addition, according to Rev. Jackson, the singer believes the men advising him "were in fact conspiring to take his holdings and that's what triggered this avalanche of challenges."
If the jury votes to convict, these questions may be moot. People close to Mr. Jackson on both sides of the debate say a conviction would likely trigger the sale of most if not all of his remaining assets, including Neverland, the Sony/ATV stake and the Mijac catalog. After listening to the 13-week trial, the jury has been deliberating since last Friday.
Write to Ethan Smith at
ethan.smith@wsj.com and Kate Kelly at
kate.kelly@wsj.com
