Neverending Woes For Michael Jackson

October 28th, 2005

At least six Neverland employees have quit in the last couple of months, my insiders say.

“Everyone is pissed,” says a staffer. “It was one thing when this happened during the trial, but now is a different story.”

In May and June, Jackson missed payroll several times, and staffers conducted a work stoppage.

More importantly, Violet Silva, head of security at Neverland and a Jackson loyalist for more than 15 years, quit her job last week. She is now working for former Jackson attorney Robert Sanger.

Jackson has been away from Neverland since his acquittal last June on charges of child molestation and conspiracy. In the meantime, Jackson has set up what seems to be a permanent residence in Bahrain, making occasional trips to London.

Recently, Jackson was summoned to jury duty in Santa Barbara County. But he’s certainly not going to be doing that anytime soon. His defense attorney, Thomas Mesereau Jr., told the court that Jackson was seeking permanent residence in Bahrain.

One source tells me, “Michael thinks they’re using the jury summons to lure him home. He thinks the prosecutors are still trying to get him.”

They may be, but certainly Jackson has other legal problems facing him in the United States, including a $48 million breach of contract suit, a pending action involving mediation in a past suit, another civil suit involving child molestation and Marc Schaffel’s $4 million suit over money he says Jackson owes him.

Selling Neverland will be complicated by liens on the property. Fortress Investments inherited an $18 million lien that is attached to the $70 million loan against Jackson’s Mijac Music Publishing.

That’s separate from the $200 million loan Fortress holds on Michael’s interest in Sony/ATV Music Publishing, aka the Beatles catalog.

Neverland could possibly sell for $40 million, which — after the lien is satisfied and taxes are paid — could leave him with enough cash to buy some new valueless tchotchkes.

Insiders tell me that Fortress may be extending the December deadline for the loans, but Jackson’s sale of Neverland would seem tied to that date. Jackson had been hoping that the prince of Bahrain would be backing him in a new record label, with distribution by Island/DefJam Records.

But that deal hasn’t happened. Jackson may actually feel like his back is against the wall financially.

Source: Roger Friedman / Fox

Category: Archive