The California Appeals Court issued a final ruling that allows Michael Jackson‘s estate to proceed with the $600 million sale of his catalog to Sony Music.
This decision comes despite objections from his mother, Katherine Jackson, who sought to block the deal.
Katherine Jackson’s Claims
Katherine Jackson claimed the sale “violated Michael’s wishes.” However, the Appeals Court stated that the star’s will granted his executors “broad powers” to make such offers. A month after issuing a tentative ruling against Katherine, the court confirmed in favor of the estate’s executors, John Branca and John McClain, stating they did not breach the terms of Michael’s will when finalizing the deal with Sony.
The court wrote, “The will gave the executors broad powers of sale, with no exception for the specific assets at issue in this case. As such, (a lower judge) did not err in concluding that it was Michael’s intent to allow the executors to sell any estate assets, including those at issue in the proposed transaction.”
The court considered the merits of the deal and dismissed Katherine’s appeal due to her failure to raise arguments before a lower probate court. Although Katherine can still appeal the ruling to the California Supreme Court, her chances of success appear slim.
Earlier this year, the Jackson estate and Sony Music reached an agreement for the music giant to acquire half of the singer’s publishing and recorded masters catalog for over $600 million. The estate’s prolonged probate court proceedings led the executors to seek approval for the deal with Judge Mitchell Beckloff, 15 years after Michael’s death in 2009. Katherine raised objections, including concerns that the sale “violated Michael’s wishes” and that retaining the catalog could potentially increase its value over time.
In April 2023, Judge Beckloff dismissed those objections and allowed the deal to proceed. Katherine then appealed, leading to the court’s recent ruling. The court dismissed several arguments from Katherine, including her claim that the sale would violate inheritance rules by preventing all of Michael’s assets from being transferred to his heirs. The court cited Michael’s will, which granted Branca and McClain “full power and authority” to make such deals while managing the estate.
Court’s Emphasis on Transaction Nature
The court emphasized that “the proposed transaction is not a gift or distribution of estate assets but rather an asset sale pursuant to which the estate receives a significant monetary payment and interest in a joint venture.” It noted that while the transaction will result in the estate exchanging assets for cash and other valuable rights, it neither diminishes the estate’s value nor impairs the executors’ ability to transfer the assets to the trust in the future.
Family Divisions and Financial Claims
The disputes surrounding the Sony deal have revealed divisions among Jackson’s heirs. In March, Blanket, Jackson’s son, requested the judge to prevent his grandmother from using estate funds to oppose the deal. Despite their initial opposition, Blanket and Jackson’s other children eventually accepted the probate judge’s ruling to proceed with the sale.
Later, the estate responded to claims from Katherine’s attorneys that she needed estate money to fund her legal battle, arguing she had received over $55 million since the singer’s death. The estate’s executors stated that “virtually no request of Mrs. Jackson for her care or maintenance has been declined,” including more than $33 million in cash.
