By Nichola Groom and Yinka Adegoke
LOS ANGELES/NEW YORK (Reuters) - Along with a vast musical legacy and legions of adoring fans, pop superstar Michael Jackson leaves behind a mountain of debt and an unfulfilled comeback many hoped would rake in millions and erase his financial troubles.
The King of Pop died suddenly on Thursday at the age of 50, after a career spanning 40 years that included the biggest-selling pop album of all time, "Thriller."
Despite taking in hundreds of millions of dollars as one of the most successful pop musicians of all time, Jackson racked up about $500 million of debt, according to sources cited by The Wall Street Journal earlier this month.
His top assets, however, including copyrights to his own songs and a stake in the Beatles` song catalog, are worth more than $1 billion, according to a music industry source.
Jackson`s career and image were tarnished by his mounting financial and legal troubles in recent years [ID:nN25299926].
Known for huge shopping sprees for toys and antiques, Jackson was accused by an accountant during his 2005 trial on child molestation charges of spending $20 million to $30 million more than he was bringing in per year.
The lavish lifestyle was made possible in part by a $200 million loan secured by his stake in the Beatles catalog. Jackson owned the music in a joint venture with Sony Corp known as Sony/ATV. Jackson refinanced those loans in 2006 in a bid to stave off insolvency.
In addition, Jackson last November had to hand over the title on his Neverland estate in California to a company made up of himself and Los Angeles-based real estate investment trust Colony Capital LLC, the firm that holds his $23 million loan on the property.
Colony Capital has been sprucing up the ranch and planned to sell it, according to the Journal. Colony Chief Executive Tom Barrack told the newspaper last month the estate could fetch $70 million to $80 million, or more if Jackson`s career were revitalized.
In a statement on Thursday, Barrack said he was "deeply saddened" by Jackson`s death, but did not comment on the impact on Colony`s business.
PLANNED BIG COMEBACK
To help turn around his financial fortunes, Jackson was planning a major comeback in London this summer, 12 years since his last tour.
AEG Live, which was promoting the 50-concert run at the 02 Arena, stands to lose as much as $40 million if its insurance is not substantial enough to cover what it has already spent on the production, Billboard reported, and one attorney said the company would not be able to recover any of those costs from Jackson`s estate.
"The concert promoters can`t sue the estate," said Bob Rasmussen, dean of the Gould Law School at the University of Southern California. "Once he dies, he doesn`t have any obligation to perform."
AEG, wholly owned by privately held Anschutz Co, will also certainly miss out on the $400 million the company estimated it could raise through a 3 1/2-year plan to work with Jackson. Continued...
Original article
Friday, June 26, 2009
Michael Jackson`s death hits tour promoter, ticket holders
By Mike Collett-White
LONDON (Reuters) - Michael Jackson`s sudden death could prove a major blow to AEG Live, promoter of his eagerly awaited run of 50 London concerts, as well as to fans who paid well over the odds to get hold of coveted tickets.
The residency at the O2 Arena had been due to begin on July 13, and organizers have yet to decide exactly how they handle refunding tickets bought directly from themselves or authorized dealers, not to mention tickets bought from unauthorized dealers, online auction sites and ticket touts.
AEG Live`s British website issued a brief statement on Jackson`s death and added: "A further announcement for ticket holders will be made in due course."
Paying back the face value of some of the estimated 750,000 tickets sold is unlikely to be AEG Live`s only headache.
The company is reported to have invested $20-30 million on the production already, not including any advance to Jackson.
And the O2 Arena, which appears on AEG`s list of sites it owns or operates, is now faced with 50 empty nights, some of which it will struggle to fill at such short notice.
AEG Live`s financial exposure will depend partly on how well insured it was for the 50-concert run.
According to industry experts, the concert promoter, a subsidiary of Anschutz Entertainment Group, initially found demand among insurers when the concerts were announced in March.
"I think what happened was that when AEG Live`s broker started going to the market to cover the original 10 dates, the appetite was there," said Jonathan Swift, editor of the specialist Post publication.
"But when the tour started escalating into more dates, people were not so keen."
HEATH CONCERNS
Doubts were voiced in March about Jackson`s ability to perform a long residency amid concerns over his health, and they persisted until his sudden death Thursday.
In March, AEG Live chief executive Randy Phillips was quoted by the Telegraph newspaper as saying the company would be prepared to self-insure.
At the time of the announcement, he told Reuters that Jackson had passed a four-and-a-half hour physical examination by independent doctors. He also said Jackson could gross "well over $400 million" under a long-term deal with AEG.
Media reports have estimated AEG Live`s potential liability from the concerts at up to 300 million pounds, although company representatives in Europe could not be reached for comment. Continued...
Original article
LONDON (Reuters) - Michael Jackson`s sudden death could prove a major blow to AEG Live, promoter of his eagerly awaited run of 50 London concerts, as well as to fans who paid well over the odds to get hold of coveted tickets.
The residency at the O2 Arena had been due to begin on July 13, and organizers have yet to decide exactly how they handle refunding tickets bought directly from themselves or authorized dealers, not to mention tickets bought from unauthorized dealers, online auction sites and ticket touts.
AEG Live`s British website issued a brief statement on Jackson`s death and added: "A further announcement for ticket holders will be made in due course."
Paying back the face value of some of the estimated 750,000 tickets sold is unlikely to be AEG Live`s only headache.
The company is reported to have invested $20-30 million on the production already, not including any advance to Jackson.
And the O2 Arena, which appears on AEG`s list of sites it owns or operates, is now faced with 50 empty nights, some of which it will struggle to fill at such short notice.
AEG Live`s financial exposure will depend partly on how well insured it was for the 50-concert run.
According to industry experts, the concert promoter, a subsidiary of Anschutz Entertainment Group, initially found demand among insurers when the concerts were announced in March.
"I think what happened was that when AEG Live`s broker started going to the market to cover the original 10 dates, the appetite was there," said Jonathan Swift, editor of the specialist Post publication.
"But when the tour started escalating into more dates, people were not so keen."
HEATH CONCERNS
Doubts were voiced in March about Jackson`s ability to perform a long residency amid concerns over his health, and they persisted until his sudden death Thursday.
In March, AEG Live chief executive Randy Phillips was quoted by the Telegraph newspaper as saying the company would be prepared to self-insure.
At the time of the announcement, he told Reuters that Jackson had passed a four-and-a-half hour physical examination by independent doctors. He also said Jackson could gross "well over $400 million" under a long-term deal with AEG.
Media reports have estimated AEG Live`s potential liability from the concerts at up to 300 million pounds, although company representatives in Europe could not be reached for comment. Continued...
Original article
"Old Boy" proceeds despite legal scuffle
TOKYO/SEOUL (Hollywood Reporter) - Steven Spielberg and Will Smith are moving forward with plans for a remake of "Old Boy" despite a complex, behind-the-scenes rights wrangle involving the Japanese publishers of the original manga and the Korean producers of Park Chan-Wook`s 2003 cult hit.
Futabasha, publisher of the manga by Nobuaki Minegishi and Garon Tsuchiya, has filed a case against Show East in Seoul, alleging the Korean company never had the right to negotiate a remake.
The issue is further complicated by the fact that Show East has shut down and its CEO, Kim Dong-Ju, has disappeared. Big Egg, a co-producer of the ultra-violent revenge flick, has also closed up shop, and its former staffers are unreachable.
"We haven`t been able to confirm that Show East is bankrupt, and at this stage we`re not sure what effect this will have on the legal case," said a spokesperson from Futabasha in Tokyo, who noted that legal proceedings had begun last week.
South Korean sales company Cineclick Asia, which represented Show East`s "Oldboy" in international territories, actually negotiated the remake deal with Universal.
Universal brought in Roy Lee`s Vertigo Entertainment, which has made a specialty of Asian film remakes, to produce the picture, and then Mandate acquired the rights from Universal.
DreamWorks, in one of its first moves in the wake of its November separation from Paramount, secured remake rights from Mandate, which remains involved in the project.
DreamWorks had no comment on the dispute between Futubasha and Show East.
(Editing by Dean Goodman at Reuters)
Original article
"Old Boy" proceeds despite legal scuffle
TOKYO/SEOUL (Hollywood Reporter) - Steven Spielberg and Will Smith are moving forward with plans for a remake of "Old Boy" despite a complex, behind-the-scenes rights wrangle involving the Japanese publishers of the original manga and the Korean producers of Park Chan-Wook`s 2003 cult hit.
Futabasha, publisher of the manga by Nobuaki Minegishi and Garon Tsuchiya, has filed a case against Show East in Seoul, alleging the Korean company never had the right to negotiate a remake.
The issue is further complicated by the fact that Show East has shut down and its CEO, Kim Dong-Ju, has disappeared. Big Egg, a co-producer of the ultra-violent revenge flick, has also closed up shop, and its former staffers are unreachable.
"We haven`t been able to confirm that Show East is bankrupt, and at this stage we`re not sure what effect this will have on the legal case," said a spokesperson from Futabasha in Tokyo, who noted that legal proceedings had begun last week.
South Korean sales company Cineclick Asia, which represented Show East`s "Oldboy" in international territories, actually negotiated the remake deal with Universal.
Universal brought in Roy Lee`s Vertigo Entertainment, which has made a specialty of Asian film remakes, to produce the picture, and then Mandate acquired the rights from Universal.
DreamWorks, in one of its first moves in the wake of its November separation from Paramount, secured remake rights from Mandate, which remains involved in the project.
DreamWorks had no comment on the dispute between Futubasha and Show East.
(Editing by Dean Goodman at Reuters)
Original article
Farrah Fawcett, 1970s sex symbol, dies aged 62
LOS ANGELES (Reuters) - Actress Farrah Fawcett, the "Charlie`s Angels" television star whose big smile and feathered blond mane made her one of the reigning sex symbols of the 1970s, died on Thursday after a long battle with cancer. She was 62.
Fawcett, who first vaulted to stardom by an alluring poster of her in a red swimsuit, was diagnosed with anal cancer in late 2006. It spread to her liver in 2007, proving resistant to numerous medical treatments in Germany and California.
"After a long and brave battle with cancer, our beloved Farrah has passed away," Fawcett`s long time companion, actor Ryan O`Neal, said in a statement.
"Although this is an extremely difficult time for her family and friends, we take comfort in the beautiful times that we shared with Farrah over the years and the knowledge that her life brought joy to so many people around the world."
Fawcett`s death in a Los Angeles hospital came just six weeks after the TV broadcast in May of a video diary she made chronicling her battle with cancer and her final months.
Called "Farrah`s Story," the documentary was effectively a self-penned obituary by the actress, who was bedridden and had lost her famous hair by the time it was shown.
O`Neal said she had wanted to tell her story on her own terms. Earlier this week, O`Neal said Fawcett had agreed to marry him before her death, but a marriage never took place, a spokesman for the actress and O`Neal said.
Fawcett, born February 2, 1947, in Corpus Christi, Texas, was an art student in college before she began modeling, appearing in shampoo ads.
She started guest-starring on TV in the late 1960s and appeared on the television hit "The Six Million Dollar Man" after marrying the show`s star, Lee Majors, in 1974. The couple divorced in the early 1980s.
ANGEL CULTURE
Fawcett`s career took off thanks to a poster of her posing flirtatiously with a brilliant smile in a red one-piece bathing suit. It sold millions of copies and led to her being cast in 1976 in "Charlie`s Angels," an action show about three beautiful, strong women private detectives.
As the tanned and glamorous Jill Munroe -- part of a trio that included Jaclyn Smith and Kate Jackson -- Fawcett was the hit show`s most talked-about star. She left "Charlie`s Angels" after only one season but lawsuit settlements brought her back to guest-star in subsequent years.
"Farrah had courage, she had strength and she had faith. And now she has peace as she rests with the real angels," Smith said in a statement.
Fawcett`s face appeared on T-shirts, posters and dolls. She came to epitomize the glamorous California lifestyle and inspired a worldwide craze for blown-out, feathered-back hair.
The New York Times once described that hair as "a work of art ... emblematic of women in the first stage of liberation -- strong, confident and joyous." Continued...
Original article
"Transformers" in high gear already
LOS ANGELES (Hollywood Reporter) - Debuting Wednesday to an estimated $60.6 million, "Transformers: Revenge of the Fallen" already has begun its triumphal rounding of the box office bases that should see it set a record or two by weekend`s end.
Once Michael Bay`s sequel to the 2007 hit based on the Hasbro toy line staked out the upcoming weekend, there was never any question that it would dominate overall sales. Competitors steered clear of the date, with only Warner Bros. fielding the feel-good weepie "My Sister`s Keeper" in a modest bit of counterprogramming.
So the new "Transformers" -- machine-tooled with the help of a budget said to have approached $200 million -- isn`t really competing against the other current releases: The Paramount release is out to do battle against the record book.
If Paramount`s first-day sales estimate holds, the sequel already can claim the distinction of the biggest Wednesday opening ever. It vaulted ahead of 2007`s "Harry Potter and the Order of the Phoenix," which bowed to a one-day gross of $44.2 million.
It came unexpectedly close to challenging "The Dark Knight," which holds the records for biggest opening-day gross and best single-day gross: It collected $67.2 million when it opened last year on a Friday. And it squeezed ahead of 2007`s "Spider-Man 3," which debuted to $59.8 million, which had enjoyed runner-up status to "Knight" in the best single opening-day list.
"Transformers`" accelerated takeoff was turbo-charged with the help of $16 million from midnight screenings, included in that $60.6 million opening number.
Entering the weekend, the Paramount/DreamWorks co-production -- which is looking to draw in a wide audience base with the help of its fast-rising stars, Shia LaBeouf and Megan Fox -- looks on track to surpass the debut of the first "Transformers," which opened on a Monday evening and collected $155.4 million in its first 6-1/2 days. By the close of business Sunday, the sequel probably will have passed that mark and in just its first five days.
In doing so, it also would overshadow 2004`s "Spider-Man 2," which holds the record for the best Wednesday-through-Sunday opening with $152.4 million.
"Transformers" still would have a hard time challenging "Dark Knight" for the best five-day gross of all time, $203.8 million. "Dark Knight" was a hit with the fans and critics. Not so "Transformers," which as of Thursday had a low-ball 22 percent approval rating at Rottentomatoes.com.
But Bay`s movies have never depended on critics. During the Friday-to-Sunday portion of its debut, the first "Transformers" pulled in $70.5 million. If its sequel maintains its momentum, it will best that number, attracting $80 million-$90 million and possibly more as it heads toward a five-day gross of at least $150 million-$175 million.
The holdovers at the multiplex will have to settle for doing business in "Transformers`" shadow. Disney`s rom-com "The Proposal," last weekend`s top grosser, Warners` breakout comedy "The Hangover" and Disney/Pixar`s animated "Up" should all move down a notch, as they register numbers in the high-teen millions.
"Sister`s Keeper," starring Cameron Diaz in the tale of a family dealing with one daughter`s leukemia, is aiming to lure older female moviegoers from the "Transformers" juggernaut. One of its selling points is that it`s directed by Nick Cassavetes, who directed "The Notebook," a leggy, summer sleeper. "Keeper," though, is probably looking at a gross around the $10 million mark for its opening weekend.
For the handful of moviegoers who turn a deaf ear to "Transformers," the specialty arena will host several new titles.
Miramax will present Stephen Frears` period romantic drama "Cheri," starring Michelle Pfeiffer, Kathy Bates and Rupert Friend.
Roadside Attractions may benefit from the world`s focus on events in Iran as it releases Cyrus Nowrasteh`s "The Stoning of Soraya M.," which examines the plight of one Iranian woman. Continued...
Original article
King of Pop Michael Jackson is dead: official
LOS ANGELES (Reuters) - Michael Jackson, the child star turned King of Pop who set the world dancing but whose musical genius was overshadowed by a bizarre lifestyle and sex scandals, died on Thursday. He was 50.
Jackson was pronounced dead at about 2:26 p.m. PDT (5:26 EDT) after arriving at a Los Angeles hospital in full cardiac arrest, said Fred Corral of the Los Angeles County Coroner`s office. The cause of death was not known and an autopsy would likely take place on Friday, he said.
Jackson`s sudden death had been reported earlier by U.S. media, which said he was taken ill at his home and rushed to the hospital by paramedics who found him not breathing when they arrived.
Known as the "King of Pop," for hits that included "Thriller" and "Billie Jean," Jackson`s dramatic, one-gloved stage presence and innovative dance moves were imitated by legions of fans around the world.
He transformed music videos and his lifetime record sales tally is believed to be around 750 million, which, added to the 13 Grammy Awards he received, made him one of the most successful entertainers of all time.
But Jackson`s belief that "I am Peter Pan in my heart", his preference for the company of children, his friendship with a chimp, his high-pitched voice and numerous plastic surgeries also earned him critics and the nickname "Wacko Jacko."
Jackson, who had lived as a virtual recluse since his acquittal in 2005 on charges of child molestation, had been scheduled to launch a comeback tour from London next month.
Quincy Jones, who helped arrange the music on the album "Thriller" and produced the "Off the Wall" album, told MSNBC: "I am absolutely devastated at this tragic and unexpected news."
"For Michael to be taken away from us so suddenly at such a young age, I just don`t have the words. I`ve lost my little brother today, and part of my soul has gone with him."
SOLD-OUT SHOWS
Jackson had been due to start a series of concerts in London on July 13 running until March 2010. The singer had been rehearsing in the Los Angeles area for the past two months. The shows for the 50 London concerts sold out within minutes of going on sale in March.
"Rarely has the world received a gift with the magnitude of artistry, talent, and vision as Michael Jackson," said Neil Portnow, president and CEO of The Recording Academy in a statement.
"He was a true musical icon whose identifiable voice, innovative dance moves, stunning musical versatility, and sheer star power carried him from childhood to worldwide acclaim."
There were concerns about Jackson`s health in recent years but the promoters of the London shows, AEG Live, said in March that Jackson had passed a 4-1/2 hour physical examination with independent doctors.
Outside the hospital in Los Angeles about 200 fans and reporters gathered on Thursday, waiting for confirmation of Jackson`s death or condition. Continued...
Original article
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