Michael Jackson Estate Created $287 Million For Beneficiaries Despite 'Premium Payouts’ Claims

The Executors of Michael Jackson’s Estate are pushing back after Paris Jackson raised objections to $250,000 in payments made to two high-powered law firms, insisting the compensation was well-earned and “common” within the entertainment industry.

In a new supplemental legal filing obtained by The Blast, the Estate explained that the payments were made to outside counsel following a blockbuster $287.5 million sale of the Estate’s minority interest in EMI Publishing, an asset the Executors originally acquired in 2012 for just $47,500.

That staggering return on investment, over 6,000 times the original value, was credited to the “ingenuity and strategic negotiations” of the Michael Jackson’s Estate's Executors and legal team.

“This was not an asset that Michael or the Estate owned at the time of Michael’s death,” the document states. “Rather, it was an asset the Executors… acquired for the Estate in 2012 through their ingenuity and strategic negotiations with Sony.”

EMI’s publishing catalog at the time included the works of music superstars, including Beyoncé, Alicia Keys, Brad Paisley, Drake, Jay-Z, Norah Jones, Pink, Rihanna, and Usher.

The filing specifically defends the $250,000 bonuses paid to the law firms Kinsella Holley Iser Kump Steinsapir LLP and Greenberg Traurig LLP, praising attorneys Howard Weitzman and Zia Modabber Katz for their critical roles in facilitating the lucrative deal. The Executors argue that the “skills, experience, and relationships” of the attorneys made a significant impact and cannot be fairly measured by hourly billing alone.

“Messrs. Branca and McClain determined that Mr. Weitzman’s and Mr. Katz’s services cannot be adequately measured or fairly compensated by an hourly rate fee payment,” the documents state. “Such additional compensation is not unusual and is quite common in the entertainment/music business.”

According to the document, the Court has approved similar bonus payments in the past, including during the sale of the Estate’s interest in the Sony/ATV catalog.

The Estate maintains that all legal fees paid during the time period in question were “reasonable” and “well deserved,” given the complex nature of the work and the unprecedented financial benefit to the Estate. They also accuse Paris Jackson’s legal team of filing their objections more than a year late, urging the Court to dismiss them outright.

“No other objections have been filed,” the filing notes. “The untimely nature of the Objections should lead the Court to summarily overrule them.”

The Executors also clarify that this new filing is only a preliminary response, and that a more detailed defense will be presented if an evidentiary hearing is required.

The Executors of Michael Jackson’s Estate are also pushing back on the assertion that they were only permitted to pay 70% of attorneys’ fees. According to the court documents, the Executors say that allegation is simply “wrong.”

The filing cites a key February 3, 2010, court order issued by Judge Mitchell L. Beckloff, which authorized the operation of the MJJ Business and granted the Executors, then acting as Special Administrators, the authority to hire and pay legal counsel as needed for ongoing matters related to the business. This included specialized attorneys in litigation, trademark, and corporate law.

“The Order does not restrict the payments for legal fees for the operation of the MJJ Business to 70% on account. To the contrary,” the document states.

Executors John Branca and John McClain emphasized that the court clearly understood the complexity of the MJJ Business and the necessity of assembling a team of top-tier legal experts in the entertainment industry. The ability to pay those legal professionals appropriately and on an ongoing basis was critical to the Estate’s turnaround.

Since that order was put in place, the MJJ Business has transformed significantly. What was once a debt-ridden entity burdened with over $500 million in liabilities at the time of Michael’s death has now grown into a multibillion-dollar empire, thanks, the Executors say, to the strategic efforts of their legal team and advisors.

But it doesn't stop there. The Executors of Michael Jackson’s Estate are doubling down on their defense of legal fee payments, pointing to the legal team’s success in handling dozens of complex cases since the singer’s death.

According to the new legal filings, counsel for the Executors have represented the Estate in more than fifteen lawsuits across the United States and have also supported international litigation efforts in Europe and Japan.

Additionally, nearly all of the 65 creditor claims filed against the Estate have been resolved in its favor.

The Executors argue that these wins were only possible because they were granted the authority to hire and compensate legal counsel on an ongoing basis, particularly in matters tied to the operation of the MJJ Business.

The filing takes aim at the Objections lodged by Paris Jackson’s legal team, claiming they mistakenly rely on a court order that applies solely to the administration of the Estate, not the operation of the MJJ Business, which functions independently.

Only one firm, Saul Ewing LLP (formerly Freeman Freeman & Smiley LLP), was primarily involved in estate administration during the relevant time period, and that firm was not paid more than 70% on account.

Importantly, the Executors assert that although the Court placed no limit on the percentage of fees that could be paid to legal counsel for the MJJ Business, they have still routinely held back 30% of payments as a matter of fiscal prudence. They add that the Estate has actually benefited financially from these withholdings due to the earnings generated on the unpaid balances.