HMVNipper
Oct 28, 2001, 11:15 AM
Interesting article from the Fox News website:
***********
'Jackson Will Lose Beatles Songs Soon'
Friday, October 26, 2001
By Roger Friedman
It's all over except for the shouting.
That's what my very inside source says about Michael Jackson's ownership of
the Beatles song catalog. The situation is a mess and it's only going to get
worse starting next week.
Here's where things stand: Michael, according to my source, who knows more
about this than almost anyone, has borrowed a total of $260 million from Sony
Music against royalties, whatever, you name it. What does he need the money
for? Well, do you run a zoo in your backyard?
Of that total, it seems that $200 million was leveraged against the Beatles
song catalog, which Michael used as collateral. Although this figure has been
reported here and in other places recently, my source also says that Michael
had a separate loan of $60 million from the company.
Some of that $60 million may have gone to the restoration of Michael's album
catalogue, which sources have told me he spent unnecessary millions on.
With all this, Sony Music essentially has a lien on the Beatles catalogue.
"And they're going to call that note soon," says the insider. "They've had a
terrible year, bottom line, so this will be the only thing they have to look
forward to."
Now, Sony's publicist will call up and squawk that it's been a great year.
They'll cite Destiny's Child, Jennifer Lopez and Train among their hits. And
it's true, they had hits. But not enough hits to pay all the bills.
The company also let Mariah Carey walk out on an outstanding record contract
with Glitter, an album they paid to record.
But back to Michael. I thought we were always told how astute he was at
business deals. "What???" my source exclaims and then guffaws. "Are you
kidding?"
Jackson, you may recall, got hold of the Beatles catalog in 1984, when he was
tipped off by Paul McCartney that it was for sale. McCartney and Yoko Ono
couldn't agree on anything, and Michael's reps swept in.
But my source also says that McCartney's brother-in-law and lawyer, John
Eastman, was close to cutting a deal even before 1984. "But Yoko screwed
things up then too, and it fell through."
Eastman did not return calls.
The Beatles catalogue is currently estimated to be worth around $500 million.
McCartney is still so angry with Jackson that he omitted their duet singles,
which hit No. 1, from his recent career retrospective album Wingspan. He also
cooked up his own group charity single called "Freedom," three days before
"The Concert for New York," knowing Michael was planning to unveil his own
anthem at the Washington, D.C., concert the following night.
"Freedom," performed live with Eric Clapton, Pete Townshend and Roger Daltrey
among others, will be shown on Wednesday night when CBS broadcasts a one-hour
version of the concert.
But I digress: Jackson's day of reckoning will come on Tuesday when Sony
releases his Invincible album. If you don't think Sony is anticipating a
failure in advance resulting in Michael's financial instability and their
possession of the Beatles songs then consider this:. Invincible is an album
with a $30 million price tag and no marketing plan.
For example, as of last night Invincible was not being featured in any
special way on Amazon.com for pre-ordering. Sony has not put any marketing
money or muscle into it, and so the Amazon music front page doesn't even
mention the album.
When you do find Invincible on amazon.com, you can buy it at a discount
bundled with the new rap album by DMX on Def Jam Records. The Great
Depression is as hard-core as Invincible is soft and malleable. It comes with
an "explicit version" sticker, and they mean it. The Sony marketing
department must have stayed up late trying to cook up this idea. What a
match: Peter Pan and Eminem's off-spring, together at last.
More bad news for Michael, maybe good news for Sony: Not yet released, Invincible ranks at No. 41 on the Amazon bestseller chart, considerably behind other unreleased albums by acts like Lenny Kravitz and the Backstreet Boys.
------------------
Rooftop Sessions - The Finest In Beatles-Related Fiction. October 2001 Issue up now! About.com BEST OF THE NET, April 2001! www.rooftopsessions.com (http://www.rooftopsessions.com)
"O superb! O Manhattan, my own, my peerless! O strongest you in the hour of danger, in crisis! O truer than steel!" -- Walt Whitman
***********
'Jackson Will Lose Beatles Songs Soon'
Friday, October 26, 2001
By Roger Friedman
It's all over except for the shouting.
That's what my very inside source says about Michael Jackson's ownership of
the Beatles song catalog. The situation is a mess and it's only going to get
worse starting next week.
Here's where things stand: Michael, according to my source, who knows more
about this than almost anyone, has borrowed a total of $260 million from Sony
Music against royalties, whatever, you name it. What does he need the money
for? Well, do you run a zoo in your backyard?
Of that total, it seems that $200 million was leveraged against the Beatles
song catalog, which Michael used as collateral. Although this figure has been
reported here and in other places recently, my source also says that Michael
had a separate loan of $60 million from the company.
Some of that $60 million may have gone to the restoration of Michael's album
catalogue, which sources have told me he spent unnecessary millions on.
With all this, Sony Music essentially has a lien on the Beatles catalogue.
"And they're going to call that note soon," says the insider. "They've had a
terrible year, bottom line, so this will be the only thing they have to look
forward to."
Now, Sony's publicist will call up and squawk that it's been a great year.
They'll cite Destiny's Child, Jennifer Lopez and Train among their hits. And
it's true, they had hits. But not enough hits to pay all the bills.
The company also let Mariah Carey walk out on an outstanding record contract
with Glitter, an album they paid to record.
But back to Michael. I thought we were always told how astute he was at
business deals. "What???" my source exclaims and then guffaws. "Are you
kidding?"
Jackson, you may recall, got hold of the Beatles catalog in 1984, when he was
tipped off by Paul McCartney that it was for sale. McCartney and Yoko Ono
couldn't agree on anything, and Michael's reps swept in.
But my source also says that McCartney's brother-in-law and lawyer, John
Eastman, was close to cutting a deal even before 1984. "But Yoko screwed
things up then too, and it fell through."
Eastman did not return calls.
The Beatles catalogue is currently estimated to be worth around $500 million.
McCartney is still so angry with Jackson that he omitted their duet singles,
which hit No. 1, from his recent career retrospective album Wingspan. He also
cooked up his own group charity single called "Freedom," three days before
"The Concert for New York," knowing Michael was planning to unveil his own
anthem at the Washington, D.C., concert the following night.
"Freedom," performed live with Eric Clapton, Pete Townshend and Roger Daltrey
among others, will be shown on Wednesday night when CBS broadcasts a one-hour
version of the concert.
But I digress: Jackson's day of reckoning will come on Tuesday when Sony
releases his Invincible album. If you don't think Sony is anticipating a
failure in advance resulting in Michael's financial instability and their
possession of the Beatles songs then consider this:. Invincible is an album
with a $30 million price tag and no marketing plan.
For example, as of last night Invincible was not being featured in any
special way on Amazon.com for pre-ordering. Sony has not put any marketing
money or muscle into it, and so the Amazon music front page doesn't even
mention the album.
When you do find Invincible on amazon.com, you can buy it at a discount
bundled with the new rap album by DMX on Def Jam Records. The Great
Depression is as hard-core as Invincible is soft and malleable. It comes with
an "explicit version" sticker, and they mean it. The Sony marketing
department must have stayed up late trying to cook up this idea. What a
match: Peter Pan and Eminem's off-spring, together at last.
More bad news for Michael, maybe good news for Sony: Not yet released, Invincible ranks at No. 41 on the Amazon bestseller chart, considerably behind other unreleased albums by acts like Lenny Kravitz and the Backstreet Boys.
------------------
Rooftop Sessions - The Finest In Beatles-Related Fiction. October 2001 Issue up now! About.com BEST OF THE NET, April 2001! www.rooftopsessions.com (http://www.rooftopsessions.com)
"O superb! O Manhattan, my own, my peerless! O strongest you in the hour of danger, in crisis! O truer than steel!" -- Walt Whitman