The Cost of Walking
Michael Jackson is free but debt ridden
LOS ANGELES--And now the comeback begins. Cleared of child-molestation and other charges last week, Michael Jackson is set to embark on that greatest of American traditions: converting his trashed image and tale of woe into cash. After weathering a 14-week-long trial, the King of Pop's finances are as shaky as his reputation. He's more than $300 million in debt, according to testimony, and he's reportedly burning through millions more monthly. Plus, his accuser could still slap him with a civil suit. But, to borrow from a British tabloid, no matter how bad it gets, Jacko could come backo. He's a celebrity, after all, and celebrities have a way of cashing in on infamy. One need look no further than sales of his albums, including Thriller and Bad, which have soared 40 percent since the verdict. Promoters of next month's Live 8 concert in Philadelphia have hinted that the Gloved One may join the lineup. There's also talk of a book, a reality TV show, and a Jackson Las Vegas act. Music industry executives also believe the pop star, 46, could earn a cool $100 million if he goes on tour. "I don't see why he couldn't do a greatest hits world tour," says David Renzer, chairman and CEO of Universal Music Publishing Group. "He hasn't toured in a long time, and people love to be part of a comeback."
The potential gigs are all aimed at getting Jackson out of debt so he doesn't have to sell his share of one of the most valued music holdings in the world. Jackson and Sony/ATV Music Publishing each own 50 percent of the catalog that includes over 250 Beatles songs and hits by Elvis and other rock-and-rollers. Jackson's share is estimated to be worth $500 million; he also owns the rights to his own music. Righting his financial situation won't be a moonwalk. Jackson not only has to make money, but he needs to dramatically scale back his $25 million-a-year lifestyle. "The problem with celebrities is that they don't treat themselves like a business, and at the end of the day that's exactly what they are," says David Bach, author of Start Late, Finish Rich. "Financially, Michael Jackson is living in a fantasy land. It's time for him to join the real world."
This story appears in the June 27, 2005 print edition of U.S. News & World Report.
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