Submitted by YOUR NEW REALITY
By Darryl Mason
Michael Jackson recently passed a four hour physical in Los Angeles to comply with insurers demands for his 50 date, $100 million sold out run of shows in London. The biggest of all comebacks from the biggest pop star in history.
How much was Jackson insured for to complete those concerts? $100 million? $200 million?
Michael Jackson was notorious for breaking very expensive business deals, leaving a trail of extremely pissed off and slightly less wealthy entertainment industry players in his wake.
He had some very big debts indeed, and his most prized possessions and collection of strange but valuable antiques were recently auctioned off.
The London concerts for Michael Jackson were not just his Big Comeback. He needed that money to pay off tens of millions in heavy debts, and to fight to keep control of his remaining assets, like the royalties he got every time a Beatles song was played or performed, thanks to the massive music publishing catalogue he co-owned with Sony Music.
On May 31, the London Times prophetically asked :

As his fortune ebbs away, Michael Jackson is relaunching his pop career with a 50-date residency at London’s 02 arena. Thanks to record ticket sales, he could be moonwalking to fiscal salvation. But can the middle-aged comeback kid survive this musical marathon? By Robert Sandall
“….(there is) the sincere belief of some of Jackson’s former business associates that he will bottle it.
Even before the reports that Jackson may be suffering from the early stages of skin cancer and the news that the first four dates of the tour are to be postponed, scepticism was rife.
One top British manager who spent time in 2007 attending meetings called by Jackson, then cancelled at the last minute, says: “Let’s see how many concerts he turns up for.”
“He’s a serial betrayer of business deals. He’ll probably play a couple of shows, then get a doctor’s sick note. Jackson’s not a well man. To do 50 concerts you need real strength, mentally and physically. He couldn’t even read the teleprompter at the press conference.”
The story goes on to speculate that Michael Jackson could have used a lookalike at the press conference to announce the London shows, and that he was rehearsing lookalikes to fill in for him during the more rigorous dance routines.
Here’s concert promoter CEO, Randy Phillips on Michael Jackson and the London gigs :
“Michael is a magnet for weird stories like that! He’s in fine shape. Very sharp, asks succinct questions. When we first started talking he was a little thin maybe. Today he feels much healthier.”
“It isn’t about the money, it’s all about the money!”
The insurance worries :
But there have been dark mutterings in the business pages about the difficulty of insuring the O2 concerts with a notorious no-show like Jackson. Marcel Avram, a German concert promoter, won a multi-million-dollar judgment against the singer at a 2005 civil trial in California for damages arising out of Jackson’s no-show for some millennium concerts. As usual, Phillips is sanguine. “Michael is totally focused now, and the insurance wasn’t a problem, it was just expensive.”
He reveals a phased three-year touring plan that will take Jackson to Europe, then the Far East, winding up in the Americas in 2011. He estimates that Jackson will make $50m-$100m from the London dates, and that this could rise to $500m if the world tour materialises.
A half billion dollar tour just went up in smoke.
Jackson was on the brink of losing the rights to his treasured collection of Beatles songs, and about 400,000 other songs. Sony owned half of the Beatles catalogue with Jackson, and were on the brink of seizing it all from Jackson, riddled as he was with small nation sized bad debts.
But here was Michael Jackson, a very astute business man, back in 1993 :
He had recently signed a new contract with his label Sony that was reputedly worth $100m, making it the richest record deal in history. He had outbid Paul McCartney for the publishing rights to the Beatles songs — which meant every time one of their tunes was played or performed in public, he received half the royalty. He had acquired a 2,700-acre ranch with a funfair and zoo attached, which was later valued at $100m and which he named Neverland after the fictional nirvana of Peter Pan.
Jackson’s Dangerous tour of 1993 grossed $200 million, and by then he’d already sold more than 100 million albums and singles.
Jackson was an extremely big spender :
One source who had access to Jackson’s accounts reckons that over the previous 20 years he had burnt through $1 billion: $650m in earnings and the rest borrowed.
The promoter of the London shows, Randy Phillips :
“When I asked him why he was doing this tour now, he said it was because his kids are old enough to appreciate it and he still felt young enough to do it. He’s told me that whatever profit he makes from these shows will go into a trust fund for his children.”
Profits, however, are still some way off. AEG expects to see no return on its investment of at least £20m until Jackson has played one-third of the O2 shows. The start-up costs for This Is It have been huge, covering the biggest stage set built for an indoor arena show and a number of what Phillips calls “grand illusions”.
His hope, along with that of the 800,000-odd fans who have bought tickets, must be that their trust in pop’s most charismatic but accident-prone Peter Pan doesn’t turn out to be the grandest illusion of all.
There will be many grande illusions quickly stitched up in the media about just how fit and ready Michael Jackson was for the London shows, and the inevitable world tour that would have followed. Jackson had to keep performing live to get the money to hang onto all those Beatles songs, a catalogue which will be worth at least a couple of billion dollars in the next few years as digital exploitation of those rights continues.
Kurt Cobain earned more than a billion dollars after he killed himself.
Elvis Presley earned dozens of times more after death than alive.
Michael Jackson, now he has Dead Legend Status, will likewise become an extremely profitable enterprise now for the music industry.
Now Jackson cannot destroy that heavily promoted Legend by failing to perform those 50 London shows, or by simply failing to perform anymore.
Visit 1800blogger to see all of our industry leading blogs.