Will Michael Jackson Keep Neverland After All?
Whatever Michael Jackson is paying his lawyers must be worth it, because it’s coming out that he might be able to keep kiddie-bait Neverland Ranch after all:
“Michael Jackson’s ranch is not going to be auctioned off at the courthouse,” the Jackson insider said. “The financing is all being worked out.”
“There are plenty of lenders willing to work with him. The real estate market is very bad right now and Jackson is being affected just like many other Americans,” the source said. […]
The real estate source said other options are available to Jackson, including selling the ranch directly to another party or making a payment on his $24.5 million Neverland debt that would satisfy the trustee.
The recorder’s Web site also reveals there was a release of lien on Jackson on February 4, showing he paid off all or part of delinquent taxes to the state of California.
“It seems unlikely that someone would pay off back taxes, only to let the ranch go up for auction a few weeks later,” said the real estate source.
Jackson has not lived at Neverland since June 2005, after a Santa Barbara County jury found him not guilty of child molestation charges.
News is that he is also missing payments on his family’s Los Angeles home:
Public documents show Michael Jackson has repeatedly failed to make mortgage payments on a Los Angeles home that has been used for years by his family.
Documents filed with the Los Angeles County Recorder’s Office indicate the reclusive pop star was most recently in default last month on the property in Encino, an area in the San Fernando Valley.
The singer had $153,910 in missed payments as of Jan. 17 on a $4 million loan serviced by Pasadena-based mortgage lender IndyMac Bancorp. Documents dated Feb. 7 show the notice of default was withdrawn.
Documents also show Jackson previously faced possible default over missed payments on the home in April and August.
And even if he does find a way out of this, he’s still in deep doody:
According to experts, Jackson could be very much on the hook with the Internal Revenue Service for around $5 million in capital gains taxes. In other words: His home would be gone, but he’d still be significantly in debt.
The reason for this is: Jackson bought Neverland for between $12 million and $14 million back in 1988. If it sells for the full amount owed, $24.5 million, there’s a conceivable difference of $10 million.
According to California law, Jackson would then be taxed on that money as if he’d sold the property and it was income. According to a California state-sponsored Web site, www.ftb.ca.gov, Jackson would be liable for this money. A ballpark figure could be as much as $5 million.
To add insult to injury, the Neverland auction, as it stands, will take place on the steps of the Santa Barbara County courthouse. The auctioneer likely will be a representative from Financial Title Company of San Francisco.
Bidders will have to come with cashier’s checks for the amount they want to offer. Once the bidding begins, Fortress Investments — the original lender and beneficiary of the bid — can’t stop it. Someone will win Neverland.
The good news is that once a bid is accepted, Jackson is no longer the debtor. If Fortress accepts a lower bid than $24.5 million, Jackson is not liable for the balance. The debt is cleared.
Neverland has been in default since October 19. He had ninety days to fix this, but did not.
So let me get this straight. MJ doesn’t work, doesn’t want to work (among others, he recently turned down a series of concerts at London’s Millennium Dome for a reported $1M each), sales of his re-release of Thriller are off, he lives off the kindness of friends, and he has people lined up to loan him money?
Where can I get these people? Because where I come from (hereafter to be known as “The Real World”), if you refuse to work and have no money, people do not stand in line to give you more money. If you do not have money to pay off your bills, then you don’t go shopping for new things until the bills are paid off. I need a vehicle to drive out-of-state, so do I now march down to the bank and ask for more money, borrow more than I can reasonably make payments on, conveniently forget to pay it back, and when they turn up wanting their money I just go to a different bank and take out more, starting the whole cycle over again? If I did that for long, I’d be homeless, broke, and probably in jail.
Let’s face it…all Michael has his lawyers do is shuffle papers around. There’s no real money, just papers with figures. I mean, there are decent, hardworking people all over America losing their homes to foreclosure through no fault of their own, but rather to a sagging economy or layoffs or illness…if they could work to pay off their debts, they would. And then you have this guy. Let’s let Joe Schmoe try showing up at the local credit union with some papers detailing his “financial assets,” or let him go to the local bank and tell them he doesn’t have a job, he doesn’t want to have a job, he is living in a house loaned to him, but he wants the bank to give him a bunch of money, and see what happens. Fun for the whole family!
I still say he should sell it to Britney Spears. Two problems solved with one fell swoop!
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“sales of his re-release of Thriller are off”
Mmm… you might wanna double check before saying bull like that. It’s number one all around Europe, and debuted at #2 in the USA, it’s sold like 500,000 copies in 2 weeks… Nah it’s a flaming success buddy.
“he recently turned down a series of concerts at London’s Millennium Dome for a reported $1M each”
Not true, he’ll be doing those shows later this year.
“kiddie-bait Neverland Ranch”
disgusting…
Comment by Lily — February 29, 2008 @ 10:58 am
It’s wrong.
Jackson is not number one all around Europe.
Only 3 countries: Belgium, France and Portugal.
Comment by juhg — February 29, 2008 @ 11:22 am
Thriller sold 166,000 copies in the first week, but the second week it dropped off to 55,000 copies, a drop of 65%.
From what I’ve been seeing, those concerts at the Millenium Dome aren’t such a sure thing after all, and everyone is saying chances of them going off are slim to none.
And hey, I’m not the one molesting kids at a zillion-dollar adult playground, so save your “disgusting” for someone who deserves it.
Comment by k — February 29, 2008 @ 2:21 pm
For a start, he didn’t molest anyone. That just exists in your fucked up head.
As for album sales, read it and weep: No. 1 in the world http://www.mediatraffic.de/albums.htm
Comment by The Gloved One — February 29, 2008 @ 2:40 pm
Right, Jackson didn’t molest anyone and OJ didn’t kill his wife or Ron Goldman. Also Britney doesn’t have psychological problems and the tooth fairy is real!
I am always amazed how fervently people defend the rich and obviously guilty people in this world. So all the court cases and settlements he has paid out over the years was just for fun? Usually people don’t pay extreme amounts of cash when they haven’t done something wrong.
How about instead of getting so worked up when someone says things like “kiddie bait ranch” you do some research and come to terms with the fact that the king of pop is a friggin’ fruit.
Comment by Christy — February 29, 2008 @ 3:38 pm
he hasn’t been the king of pop for years. he is a has been whack job now.
Comment by sally — February 29, 2008 @ 3:49 pm
What I don’t understand is where did all that money go?
According to the CBS News website, in 2005 during Jackson’s child molestation trial, a forensic accountant found that Jackson “was spending $20 million to $30 million more every year than he earned.” The accountant also said that at the time of the trial Jackson owed Bank of America “at least $235 million on a loan and a line of credit.”
Let’s do the math, shall we?
If he’s spending between 20 and 30 MILLION a year more than he makes, we can take the average (25M) and divide that by 365 days in a year. At that rate, it would mean that he was spending an average of $68,493.15 A DAY more than he was bringing in.
Where on earth, or how on earth, do you spend $68K a day and not have something to show for it? I mean, 68K a day is a lot of material “stuff.” Not to mention, having to take out a loan for another $235 MILLION — where is it all going?
Can the care and upkeep of Neverland plus the payouts for all the out-of-court settlements really have him THAT financially strapped?
Y’know, I can kind of understand Einstein’s Theory of Relativity, I can sort of grasp someone paying 6 million for baby pictures, and I can even comprehend (ever so slightly) how “Dancing with the Stars” could be a successful TV show.
But the one thing I can’t for the life of me understand is how someone of his talent and pop-icon stature could be so far in debt.
To quote Vizzini: “INCONCEIVABLE!”
Comment by crazymom — February 29, 2008 @ 4:43 pm
I think his face has a higher probability to fall off than his career has of a comeback.
Comment by D-Bomb — February 29, 2008 @ 6:04 pm
32. Naj says:
February 29th, 2008 at 10:40 pm
Pat Cox, T.S.Eure, nicely put - I’ve been a Michael fan since I can remember sometime before Thriller and it would have been earlier if I was old enough. Some people thing that MJ fans are bias and that can be understandable when you love someone so much; but when you ask the ones who take pleasure in slagging off Michael why; you soon find out that they just reiterate the tabloids and don’t really know enough about Michael to have an opinion, they’re ingorant. When it suits them they will slag of the papers saying what a waste of space the media is, and the truth is they just wanna put Michael down to fit in with there moron crowd with nothing in their lives that they need to leech onto someone elses pain. Sometimes when I talk to people like that it soon appears how prejudice they are for people being different. I’m a muslim, I have grown up with white friends but alond the way specially in the recent climate I’ve felt singled out although I am as british as they come. I made my own choices but they say I am weird for not drinking or sleeping around and just being different. And it’s this mentality that doesn’t look at itself but tried to bring good people down. I don’t jump up and down and say Michael changed my world even though I suppose he has, but what I do know is I could have done bad things along the way but I was so deep into Michaels words in song and books that it wasn’t possible to be bad and I thank him for that. It is so hard to describe how much I just want to thank Michael in person it hurts. If theres anyone out there who shares my thoughts get in touch. We are with Michael for ever! dark.ang3l@ntlworld.com.
Love you Michael,
Comment by Naj — February 29, 2008 @ 6:12 pm
Oh, so much I could say, but won’t. I’ll let #9’s comment stand on its own merits, since so many will see it for what it is.
But I will say this…I may not be a MJ fan (any more), but at least I know how to spell ‘ignorant’.
Comment by k — February 29, 2008 @ 6:17 pm
[…] Read the rest of this great post here […]
Pingback by Bad Debt » Blog Archive » Will Michael Jackson Keep Neverland After All? — February 29, 2008 @ 7:19 pm
Oh k, does your brilliance have no bounds?
And D-bomb, I about pee-ed my pants with your assesment. Sad, but true.
Comment by D — February 29, 2008 @ 10:36 pm
D….I just calls ‘em like I see ‘em.
Comment by D-Bomb — February 29, 2008 @ 11:26 pm
Well I guess we can see how being a genius in one area can make another area lack. All I can say is he has problems he’s made for himself like we all do and he has to deal with them like we all do so alls well in the fact that this is his life and he will work it out. Didn’t we? But there are some things in life with consequences that we dont get let out of so we have to be very careful with our choices. Words of Wisdom if MJ is listening? I love ya MJ wish you the best. Sad for ya But I hope you learn what you need to. Take care my friend.
Comment by hotmomma — March 1, 2008 @ 10:33 am
what are those yellow things stuck to hie face? post it notes?
poor creature…
Comment by jmb — March 1, 2008 @ 6:00 pm
Believe it or not, they’re adhesive bandages. You know, Band-Aids.
Comment by k — March 2, 2008 @ 12:14 am
They’re holding his face together.
Comment by D-Bomb — March 2, 2008 @ 5:44 pm
adriana: My point is that you made your comments, you said what you felt like you needed to say, and that should have been that.
But to sit and make three, four, five, six comments in a row, or more, with no signs of stopping, saying the same thing over and over, is spamming the comments section, and we don’t take kindly to that.
I warned you and you disregarded it. I don’t mind if you have a different opinion, but say what you have to say and move on. Otherwise, future comments will be handled in the same way.
Have a nice day.
Comment by k — March 31, 2008 @ 8:31 pm