Beatles for sale, in-debt Jackson decides

MICHAEL Jackson will sell his 50 per cent stake in the Beatles’ back catalogue "in the next few days" in an effort to alleviate his financial woes, sources close to the pop star claimed yesterday.

A deal is reported to be "on the table" which would pay Jackson’s massive debts, stated in court documents to be $275 million (146 million), in return for selling his interest in the Sony/ATV back catalogue, which includes half of the rights to more than 150 songs written by John Lennon and Paul McCartney.

Jackson, currently on trial in California on charges of child abuse, is thought likely to sign the deal amid mounting interest on multiple loans he has secured against the Beatles songs since 1999. He has repeatedly denied claims by the prosecution that he is on "the precipice of bankruptcy".

Jackson is expected to be left with $10 million in cash in the settlement once his outstanding debts have been paid, and would receive an annual income of between $7 and $8 million, including payments from Sony/ATV. Loans secured on Jackson’s own back catalogue and his Neverland ranch would also be paid off.

Jackson would then be forced to scale down operations at the 2,700-acre Neverland ranch, which include a carnival and zoo. Staff at the ranch were reported to have threatened to walk out last month after claiming they had not been paid.

Any settlement would not include provisions to pay the alimony Jackson owes his ex-wife, Debbie Rowe, or cover the costs of a custody battle over his two children. Jackson is also widely expected to face a civil lawsuit after the current criminal trial is resolved.

Jackson bought the rights to the entire Beatles song collection for $47 million in 1985. He sold half of the rights to Sony/ATV in 1991 for $130 million. The catalogue is now worth upwards of $575 million.

Paul Russell, a former chairman of Sony/ATV, recently said that Jackson "really wanted to be a part of musical history by owning all these rights", adding: "I don’t think he ever expected they would be necessary to bail him out of a difficult financial situation."

Jackson’s own back catalogue, which he owns through Mijac Music and which includes the rights to songs such as Billie Jean and Beat It, is thought to be worth upwards of $100 million.

In 1999 it was revealed that he had borrowed more than $180 million from US banks, secured on the catalogue of Beatles hits. Jackson went on to borrow $80 million in 2001 and a further $50 million in 2003. The prosecution has portrayed the singer as a "spendaholic".

Jackson, 46, is standing trial for allegedly molesting a boy, aged 13, who spent time at his Neverland ranch.

He has pleaded not guilty to ten charges, including felony conspiracy.

In testimony yesterday, the mother of the singer’s accuser, Janet Arvizo, told the court in Santa Maria that she was told exactly what to say on a video made to defend Jackson in the wake of a controversial documentary. "I was confused, I was sad, so basically I was acting," she said. The trial continues.