Fueled by a bonanza of interest following Jackson's death, his estate raked in $275 million over the past 12 months, by our estimates. That's more than enough to earn the King of Pop the top spot on our annual Dead Celebs list; in fact, it's more than the rest of the artists on the list put together, and more than any living artist or group.
"The cash flow on an annual basis is tremendous," says Donald David, an estate lawyer who handled the postmortem finances of rapper Tupac Shakur. "Sure, it's going to decline eventually, but it's going to be a huge amount in the foreseeable future. [Jackson's] kids are going to have grandkids before that money's gone."
The Gloved One's long-term earnings prospects in the afterlife have been bolstered by the deals arranged since his death. His estate received a $60 million advance for last year's film This Is It; sales of a Jackson-themed videogame, memorabilia and a re-released autobiography brought in an additional $50 million. The estate still owns the rights to Jackson's music, which took in nearly $50 million on heavy radio play and album sales over the past year. The funds have been used to put a significant dent into the roughly $500 million in debt Jackson left.
There's more cash on the horizon for the Jackson estate: A deal with Sony Music to put out unreleased recordings will bring in another $200 million to $250 million over the next seven years. Adam Kluger, chief of product-placement outfit The Kluger Agency, expects new Jackson releases to include collaborations with popular artists like Akon and Will.i.am, both of whom worked with Jackson shortly before his death. He believes the current surge of interest in Jackson will prove sustainable.
"Michael Jackson will definitely have staying power for years to come," says Kluger. "There is a strong demand for Michael Jackson's music and merchandise, and that will only increase as more material surfaces in the years following his death."
Perhaps the most lucrative asset in Jackson's estate is a set of songs recorded by other artists. In 1985 Jackson made a brilliant financial move by shelling out $47.5 million to buy a catalog that included rights to 250 Beatles songs. Ten years later, crippled with personal debts he's incurred through extravagances--from $10,000-a-night hotel stays to Rolls Royce convertibles purchased as gifts for his lieutenants--Jackson sold a 50% interest in the catalog to Sony for $90 million, forming a joint venture called Sony/ATV.
Today Jackson's estate still owns half the catalog, which now contains half a million songs, including titles by Elvis Presley, Bob Dylan, Lady Gaga, Eminem and Beyoncé. Industry insiders estimate that the catalog throws off $50 million to $100 million per year, giving it a total value of about $1.5 billion. That means an annual $25 million to $50 million for the estate's coffers, on top of the considerable sums coming from Jackson's own music and merchandise.
"His earning potential will only increase year after year, as his legacy continues to be cemented," says Susan Blond, who served as Jackson's publicist during the Thriller days. "When our great-grandchildren are talking about music, it will be Michael Jackson over Elvis Presley."
For full coverage of the 2010 Top-Earning Dead Celebrities list, click here.
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