The estate of Michael Jackson has landed the late King of Pop the biggest recording deal in history: a reported $200 million (£133 million) guaranteed contract with Sony Music Entertainment for ten projects over seven years.
The record-breaking contract, which is expected to last until 2017, could be worth up to $250 million (£166 million) if certain conditions are met. One of the albums will be of previously unreleased Jackson recordings that will come out in November, according to a source familiar with the deal. The person spoke on condition of anonymity because an official announcement is expected later today.
Future projects may also include a video game, a DVD compilation of videos and a re-release of Off the Wall, Jackson's fifth studio album, which first came out in 1979, accompanied by some unreleased material. Before his sudden death in June at the age of 50, the pop star had reportedly wanted to reissue the album.
One of the projects included in the contract is the two-disc album that accompanied This Is It, the film based on footage of concert rehearsals for what was to have been Jackson's comeback at the O2 arena in London.
Since Jackson’s death in June, more than 5 million copies of the special release of This Is It have been sold, as well as 31 million copies of his other albums.
“During his life, Michael's contracts set the standard for the industry,” said John Branca, the co-administrator of the Jackson estate, in a statement prepared for release later today. “By all objective criteria, this agreement with Sony Music demonstrates the lasting power of Michael's music by exceeding all previous industry benchmarks.”
Rob Stringer, chairman of Sony Music's Columbia Epic Label Group, said: “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 deal is worth more than the all-encompassing rights deals that Live Nation Entertainment, the concert promoter and ticket-seller, had previously signed with Madonna ($120 million) and Jay-Z ($150 million).
The deal with Jackson's estate is even more remarkable because it does not include royalties from merchandise.
The contract shows the value of legacy artists. It also comes at a time of decline for the music industry, with sales down about half from their peak in 2000, mainly because of free file-swapping.
The money will go a long way to settling Jackson's debts, estimated at about $400 million at the time of his death.
Distribution rights for This Is It were sold to Sony Pictures, another unit of Sony Corp, for $60 million and the movie went on to gross $252 million worldwide, the highest takings for a concert film.
Walt Disney even brought back the 17-minute Jackson movieCaptain EO to its Disneyland theme park in Anaheim last month. The original began running at the park in 1986 but was pulled in 1997.
Jackson's most lasting and valuable asset is the 50 per cent stake in Sony/ATV Music Publishing, a company that owns publishing rights to music by The Beatles and numerous other artists, including Elvis Presley and Bob Dylan. The copyright catalogue is estimated to be worth $2 billion.
The new financial windfall comes as circumstances around Jackson's death remain in legal limbo.
Dr Conrad Murray faces a charge of involuntary manslaughter for allegedly giving Jackson a lethal combination of sedatives. He is due back in a Los Angeles court on April 5.
Times Online
