Expert: Jackson would have earned $1B on comeback
LOS ANGELES (AP) — Michael Jackson could have earned $1.1 billion or more if he had performed a worldwide concert tour and created a Las Vegas show before his death, an accounting expert familiar with the singer’s earning potential told jurors on Monday.
Arthur Erk, a certified public accountant who conducts royalty audits for musicians, told jurors that Jackson may have earned $1.5 billion for the shows if he had charged higher ticket prices during later shows on the “This Is It” tour.
Erk said he was using conservative estimates to figure Jackson’s earning potential if he had lived for several more years, completed a worldwide tour and created a Las Vegas show based on his music. The estimates took into account endorsements and royalties that Jackson could have earned and are heavily dependent on the idea that Jackson would have performed a 37-month world tour.
His testimony was meant to show jurors the superstar’s earning potential in the case brought by Jackson’s mother against concert promoter AEG Live LLC.
Katherine Jackson claims AEG Live is liable for her son’s death because it failed to properly investigate the doctor convicted of giving the singer an anesthetic overdose.
AEG denies it hired the doctor or bears any responsibility for Jackson’s death at age 50 in June 2009.
Erk’s figures also account for an estimated $134 million the singer would have likely spent before retiring from show business at age 65, Erk said.
AEG will likely contest the estimates, and the defense objected to the accountant offering his opinion in several areas. A judge overruled those objections.
Jackson had signed on for only 50 shows in London, although contracts for the shows indicated longer tour was a possibility.
Jurors will have to determine the amount of any damages in the case if they find AEG Live is liable for Jackson’s death.
Erk said Jackson contemplated doing a Las Vegas show based on his music and archival footage that would have generated new royalties for the singer. Plaintiff’s attorney Kevin Boyle said the estimates anticipated the Vegas show would run 10 years.
Jackson also contemplated a film career, according to testimony from his nephew Taj Jackson and the singer’s longtime creative collaborator, Kenny Ortega. Erk will not offer any estimates on how much Jackson may have earned if he had a successful film career.
Erk is testifying as an expert witness. The accountant also performed royalty audits on companies that released Jackson’s music during the height of his popularity in the 1980s, he said.