Thursday, April 30, 2009

The arc of Michael Jackson's career, and his management of his business and financial affairs, tracks some of the timeworn truisms about the realities of the entertainment industry and those who inhabit its upper tiers: a child star unwittingly beholden to others who control his bank account; a more mature adult who is savvy about packaging and marketing himself but who grows increasingly undisciplined about his spending; and, finally, a reclusive caricature locked inside a financial and emotional fantasyland of his own making.
For those without access to Mr. Jackson's personal accounts, assessing exactly how much money has passed through his hands over a career that spans decades is impossible. Sales of his recordings through Sony's music unit have generated more than $300 million in royalties for Mr. Jackson since the early 1980s, according to three individuals with direct knowledge of the singer's business affairs. Revenues from concerts and music publishing -- including the creation of a venture with Sony that controls the Beatles catalog -- as well as from endorsements, merchandising and music videos added, perhaps, $400 million more to that amount, these people believe. Subtracted were hefty costs like recording and production expenses, taxes and the like.
Those close to Mr. Jackson say that his finances have not deteriorated simply because he is a big spender. Until the early 1990s, they said, he paid relatively close attention to his accounting and kept an eye on the cash that flowed through his business and creative ventures. After that, they say, Mr. Jackson became overly enamored of something that ensnares wealthy people of all stripes: bad advice.
Michael Jackson has spent a lifetime surprising people, in recent years largely because of a surreal personal life, lurid legal scandals, serial plastic surgeries and erratic public behavior that have turned him -- on his very best days -- into the butt of late-night talk-show jokes and tabloid headlines. But when his career began to take off nearly four decades ago as a member of the pop group the Jackson 5, fans and entertainment industry veterans recognized something else about the pint-size musical dynamo that was unusual: He was in possession of an outsize, mesmerizing talent.
By 1969, Mr. Jackson had already spent years in talent shows and performing in seedy Midwestern clubs under the aegis of Joe Jackson, his dictatorial and ambitious father. Joe Jackson and Berry Gordy, the founder of Motown Records, were the singer's twin mentors during the early career.
Mr. Jackson had his own recollections of those years. "When you're a show-business child, you really don't have the maturity to understand a great deal of what is going on around you. People make a lot of decisions concerning your life when you're out of the room," he wrote in "Moon Walk," his 1988 autobiography. "Berry insisted on perfection and attention to detail. I'll never forget his persistence. This was his genius. Then and later, I observed every moment of the sessions where Berry was present and never forgot what I learned. To this day, I use the same principles."
Mr. Jackson eventually broke with his father and the Jackson 5, a move toward creative and financial independence marked by his collaborations with Quincy Jones on a trio of albums. The most memorable of those is 1982's "Thriller," which eventually racked up sales of 51 million copies globally, according to the Guinness World Records, making it the best-selling album in history. Yet "Thriller" took a heavy toll, Mr. Jackson's associates say, setting a benchmark of success that the entertainer never stopped chasing.
Mr. Jackson's pre-expense share of the "Thriller" bounty -- including the album, singles and a popular video -- surpassed $125 million, according to a former adviser who requested anonymity because of the confidential nature of Mr. Jackson's finances. Those who counseled him in the "Thriller" era credit the pop star with financial acumen and astute business judgment, evidenced by his $47.5 million purchase of the Beatles catalog in 1985 (a move that served to alienate him from Paul McCartney, the Beatles legend who imparted the financial wisdom of buying catalogs to Mr. Jackson during a casual chat, only to see Mr. Jackson then turn around and buy rights to many of Mr. McCartney's own songs). Acquaintances from that period say that he would occasionally borrow gas money, and he still lived in the Jackson family home in the suburban Encino section of Los Angeles.

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