Jacksons v AEG Timeline Legal

Michael Jackson estate executors renegotiate fees

By | Published on Tuesday 20 December 2011

Michael Jackson

The executors for the Michael Jackson estate have successfully negotiated what amounts to a pay rise for their work managing what has become a very lucrative entertainment business. Both John Branca and John McClain claimed that their work managing the late king of pop’s legacy was much more demanding than either had expected, hence their request for higher recompense.

The pay rise has been achieved by allowing companies associated with Branca and McClain to be paid directly for work they undertake for the estate, rather than their fees coming out of the two men’s respective shares of the loot.

Under a previous agreement, the two men get 10% of revenues generated by the estate, not including dividends from the estate’s stake in the Sony/ATV music publishing business and profits from sales of Jackson’s recordings catalogue and the ‘This Is It’ movie. But fees charged by Branca’s law firm and McClain’s studio are included in that 10%.

Under the new agreement, approved by the Jackson family and this week by a judge, a separate 3% share of revenues will go to the two men’s respective companies, thus increasing the monies they personally get for their work.

Elsewhere in Jackson-related money news, the previously reported auction of some 500 items from the LA home where the singer died generated sales close to $1 million last weekend. As previously reported, the bed the pop star actually died in was removed from the sale at the request of the Jackson family.