Money Matters, Simplified.
Michael Jackson's estate and Sony sign deal for 7yrs
by Ishita Sood - March 16, 2010 - comments
Known as the King of Pop, Michael Jackson died of cardiac arrest on June 25, 2009. He was 50.
Nine months after Michael Jackson’s demise, his estate has signed the biggest recording deal--a $200 million guaranteed contract with Sony Music Entertainment for 10 projects over the span of next seven years.
People familiar with the matter talked of other projects in the pipeline. A video game, a two-disc album of ‘This Is It,’ a DVD compilation of videos and a re-release of ‘Off the Wall’ (Jackson's album which released in 1979) are also set to be included in the contract.
“During his life, Michael's contracts set the standard for the industry,” said John Branca, the co-administrator of the Jackson estate, on Tuesday.
“By all objective criteria, this agreement with Sony Music demonstrates the lasting power of Michael's music by exceeding all previous industry benchmarks,” he added.
The deal
The deal, brokered by executors John Branca and John McClainnce, will be executed once certain conditions are met.
Rob Stringer, chairman of Sony Music's Columbia Epic Label Group, talked of the latest contract, which will not include royalties from merchandise.
He said, “Michael has always been a treasured member of the Sony Music family. We’re dedicated to protecting this icon’s legacy and we’re thrilled that we can continue to bring his music to the world for the foreseeable future.”
The first project of the deal is expected to be out in November 2010. All sales will go to settle Jackson's debts, which are estimated to be around $400 million. The estate is likely to pay off about $125 million of debt by this year end, reported the Journal.
Sony has already sold about 31 million copies of his albums worldwide since his death last year.
According to media sources, the singer even left dozens of unreleased songs, which could be refurbished along with the old hits. More details of the contract are expected to be officially announced late on Tuesday.
Michael Jackson--the King of Pop
Known as the King of Pop, Jackson died of cardiac arrest on June 25, 2009. He was 50.
Jackson was one of the most entertaining singers of all times and was even included several times in the Guinness Book of World Records. He won 15 Grammy Awards, making him one of the best selling artists of all times.
Jackson has been the top-selling U.S. artist of 2009, after his death, with more than 8.3 million albums purchased.