As head of his firm's music department, Branca has long represented the Michael Jackson estate, which has generated revenues of more than $2 billion and earnings approaching $1 billion, a serious reversal of fortune since 2009 when Jackson died with more than $500 million in debt.
His earlier representation of Jackson over three decades includes a 1985 mega-deal, when Branca advised the superstar to buy for $47.5 million a 4,000-song collection full of gems such as the John Lennon-Paul McCartney catalog plus hits by Elvis Presley, Little Richard, The Rolling Stones and Bruce Springsteen. Jackson borrowed part of the money from groups that would eventually include Sony Corp., which retained co-ownership.
The collection was at the center of the year's biggest music transaction, when Sony announced in March it would exercise its option to buy out the Jackson Estate's half for $750 million. "That was the big one this year," he said. Branca said he felt "blindsided" in late 2015 to get the call disclosing that Sony wanted the tunes. "That was a stressful moment. We were surprised. Sony let us know without even a sit-down to explore the options. Normally, we'd expect at least that from a partner. It was not our intent to exit that catalog."
Still, Sony's move brings a lot of cash to the Jackson Estate. Branca calculates that in constant dollars it represents a sevenfold return on Michael Jackson's 1985 investment, a sum independent of the nearly $400 million in annual payouts the catalog reaped over the decades. "In retrospect, to cash out and diversify the assets has advantages," Branca said. "To have it in cash means we're not solely invested in IP."
Other clients include Authentic Brands Group/Elvis Presley Enterprises, Mariah Carey and Enrique Iglesias, for whom he negotiated the singer's move from Universal Music Group to Sony Music Entertainment. He advises Carlos Santana on his residency at the House of Blues Las Vegas and negotiated a new recording deal for The Bee Gees' Barry Gibb with Columbia Records. Branca's law partners advise the likes of Beyoncé, Selena Gomez and Justin Timberlake.
Branca said his work is deeply gratifying, especially his deep connection to music and musicians. "The purchase and sale of assets and the giving of strategic advice are things I enjoy," he said. "And I enjoy my clients. And I enjoy the blues."
— John Roemer
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390
Send a letter to the editor:
Email: letters@dailyjournal.com