Michael Jackson’s estate has signed what is reportedly the biggest recording deal in the history of the music industry.
It’s been reported that Jackson’s estate has signed a contract with Sony Music worth more than $200 million. The deal reportedly involves the production of 10 various album projects over a seven-year period, including one album that will include previously unreleased material.
Jackson had been signed with Sony since the late 1970s and this deal would continue that long-term relationship. Although Jackson had a long-standing relationship with Sony, Jackson’s relationship with the music giant had become strained when Jackson borrowed millions of dollars from the music company. Some believe this deal will help Jackson’s estate repay some of the money Jackson himself borrowed.
According to sources close to Jackson’s estate, the contract will run through 2017 and could be worth up to $250 million. The first album is set to be released in November and will include never-before released recordings from Jackson. Some of the future projects that might come out of the agreement include a DVD compilation of the videos, a re-release of Jackson’s “Off the Wall” which came out in 1979, and a video game.
According to people close to Jackson’s estate, before Jackson died in June of 2009, he had indicated a desire to re-issue “Off the Wall”.
“During his life, Michael’s contracts set the standard for the industry,” said John Branca, co-administrator of Jackson’s estate in a Tuesday press release. “By all objective criteria, this agreement with Sony Music demonstrates the lasting power of Michael’s music by exceeding all previous industry benchmarks.”
Some other benchmarks set in the music industry pale in comparison to this new contract. They include all rights deals that Live Nation Entertainment previously had with Jay Z for $150 million and Madonna for $120 million.
Those deals included royalties from merchandise, which Jackson’s does not include.
Many believe the money will be used primarily for settling Jackson’s debts, which are estimated to be around $400 million but the estate has already made money from “This is It”, which has already grossed $252 million worldwide, the most any concert film has ever grossed.