Kapital
2
Jackson's Money Runs Out at Neverland
Wednesday, March 09, 2005
By Roger Friedman
http://www.foxnews.com/story/0,2933,149836,00.html
Lisa Marie Presley had a hit called "Lights Out in Memphis," but she never could have dreamed up this scenario concerning her ex-husband: The lights could be out at Neverland today.
It seems that Michael Jackson's famed ranch and retreat, the site of many good works and also some nasty allegations, could be losing its staff. Sources have confessed to me that last Friday, for the second week in a row, the payroll was not met. Additionally, many operating bills, like the phone and electricity, have gone unpaid as well.
The blame for all this is being laid at the feet of Michael's brother Randy, who took control of the pop star's finances and life about a year ago when brother Jermaine and the Nation of Islam got the boot. Randy is a highly unpopular figure among Michael's loyalists, but what took place last Friday seems to have been the breaking point.
Staffers who went home again without checks were told that Randy would make good on salaries by yesterday. When that didn't happen, he was given a deadline of this morning to come through — or else.
I'm told that chaos ensued on Friday when Michael came home after a long day in court. He had to face his father, Joseph Jackson, who'd been summoned by Michael's accountant Alan Whitman. Joseph and his wife Kathryn have remained at the ranch ever since, keeping a presence and the peace among ranch workers who are ready to walk.
So what's going on? This column was first to write about Jackson's financial woes back in July 2001. As others have speculated about his ownership of the Beatles catalog and of Neverland itself, we've been on the case trying to untangle the mysteries of his accounting.
And Randy has too. About three months ago he hired his own accountant and instructed Whitman, who has long tried to rein in Jackson's wild finances, to answer to him.
According to my sources, it costs around $350,000 a month to run the 2,700 acre ranch, including staff, maintenance and the zoo. That breaks down to roughly $75,000 a week.
Jackson owes $350 million to Bank of America in loans. But he also has income derived from album sales. He's still selling about 15,000 total CDs and DVDs a week (mostly of "Thriller") and publishing royalties on his own music.
About two weeks ago, I'm told, Whitman became concerned that the Neverland operating accounts were running dry. The CD and publishing income usually generated was not appearing in Jackson's Bank of America account.
"There was nothing to draw on," my source reports.
Afraid that his usual intermediaries wouldn't alert Jackson, Whitman contacted Michael's father, I am told. Joseph Jackson, who was in London, immediately went to Neverland last Friday when he returned stateside. The result was a showdown that has still not been resolved as of this writing.
The big question of course is: Where did the money in the Neverland operating account go? I am told that when Bank of America receives payments on behalf of Jackson, they send the money directly to Whitman at his request.
"It would be impossible for someone to get between them in the process," my source said.
Even more intriguing, is the report of Randy's promise to make good on the missing funds. Where would he suddenly find the kind of money needed to cover the ranch's operating expenses? Speculation is that Randy, Michael's younger brother, has been cutting deals for the pop star without his knowledge. Believe it or not, sources tell me, offers come in almost daily for endorsements and other investments in the half-million dollar range.
The word from Neverland is that Randy has purchased a penthouse for himself in Miami and moved one of Michael's Bentleys there for his own use since he assumed control of Michael's world about a year ago.
"When Michael found out about that, there was a huge blowout," my source said.
Calls to Randy Jackson and Alan Whitman were not returned.
HABLA DE LAS FINANZAS DE MJ .Pero aun no lo he traducido
Wednesday, March 09, 2005
By Roger Friedman
http://www.foxnews.com/story/0,2933,149836,00.html
Lisa Marie Presley had a hit called "Lights Out in Memphis," but she never could have dreamed up this scenario concerning her ex-husband: The lights could be out at Neverland today.
It seems that Michael Jackson's famed ranch and retreat, the site of many good works and also some nasty allegations, could be losing its staff. Sources have confessed to me that last Friday, for the second week in a row, the payroll was not met. Additionally, many operating bills, like the phone and electricity, have gone unpaid as well.
The blame for all this is being laid at the feet of Michael's brother Randy, who took control of the pop star's finances and life about a year ago when brother Jermaine and the Nation of Islam got the boot. Randy is a highly unpopular figure among Michael's loyalists, but what took place last Friday seems to have been the breaking point.
Staffers who went home again without checks were told that Randy would make good on salaries by yesterday. When that didn't happen, he was given a deadline of this morning to come through — or else.
I'm told that chaos ensued on Friday when Michael came home after a long day in court. He had to face his father, Joseph Jackson, who'd been summoned by Michael's accountant Alan Whitman. Joseph and his wife Kathryn have remained at the ranch ever since, keeping a presence and the peace among ranch workers who are ready to walk.
So what's going on? This column was first to write about Jackson's financial woes back in July 2001. As others have speculated about his ownership of the Beatles catalog and of Neverland itself, we've been on the case trying to untangle the mysteries of his accounting.
And Randy has too. About three months ago he hired his own accountant and instructed Whitman, who has long tried to rein in Jackson's wild finances, to answer to him.
According to my sources, it costs around $350,000 a month to run the 2,700 acre ranch, including staff, maintenance and the zoo. That breaks down to roughly $75,000 a week.
Jackson owes $350 million to Bank of America in loans. But he also has income derived from album sales. He's still selling about 15,000 total CDs and DVDs a week (mostly of "Thriller") and publishing royalties on his own music.
About two weeks ago, I'm told, Whitman became concerned that the Neverland operating accounts were running dry. The CD and publishing income usually generated was not appearing in Jackson's Bank of America account.
"There was nothing to draw on," my source reports.
Afraid that his usual intermediaries wouldn't alert Jackson, Whitman contacted Michael's father, I am told. Joseph Jackson, who was in London, immediately went to Neverland last Friday when he returned stateside. The result was a showdown that has still not been resolved as of this writing.
The big question of course is: Where did the money in the Neverland operating account go? I am told that when Bank of America receives payments on behalf of Jackson, they send the money directly to Whitman at his request.
"It would be impossible for someone to get between them in the process," my source said.
Even more intriguing, is the report of Randy's promise to make good on the missing funds. Where would he suddenly find the kind of money needed to cover the ranch's operating expenses? Speculation is that Randy, Michael's younger brother, has been cutting deals for the pop star without his knowledge. Believe it or not, sources tell me, offers come in almost daily for endorsements and other investments in the half-million dollar range.
The word from Neverland is that Randy has purchased a penthouse for himself in Miami and moved one of Michael's Bentleys there for his own use since he assumed control of Michael's world about a year ago.
"When Michael found out about that, there was a huge blowout," my source said.
Calls to Randy Jackson and Alan Whitman were not returned.
HABLA DE LAS FINANZAS DE MJ .Pero aun no lo he traducido
