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The Next Graceland? No Chance.
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A top executive overseeing Neverland Ranch tells The Daily Beast’s Gerald Posner it will not become a public Michael Jackson museum, and that the real-estate firm has received private bids from several billionaires, and has already turned down a $100 million private offer.
Neverland as the new Graceland? Although many Michael Jackson fans might love the concept, The Daily Beast has learned that it definitely is not going to happen. I spoke to a senior executive at Colony Capital, who is intimately involved in overseeing Neverland, but was not authorized to speak on the record. He revealed—for the first time—that since Jackson’s death the company has received several private bids for the 2,600-acre ranch property. The top offer so far? An even $100 million. “All of the offers are from individual billionaires,” the Colony executive told me. “Neverland is not going to be sold to a corporation and become a company retreat.”
Colony became Neverland’s owner in 2008 when it purchased the $24.5 million in debt on the property from the Fortress Investment Group, which was threatening to foreclose. Colony’s owner, Tom Barrack, a California billionaire who made his fortune buying up bad real-estate loans from troubled S&Ls in the 1980s, was personally asked by Jackson to save his home.
“If we just want to sell it—which is what we are going to do—[Jackson’s heirs] have no say, no rights.”
“We own the ranch,” the Colony executive explained, “subject to a profit participation for Michael. Our agreement was that we would get the first dollars that came out of any development, plus a nice return. Everything above that would get split, with the percentage moving in Michael’s favor as more money came in.”
When Jackson was alive, Colony had discussed the possibility of subdividing the property and selling off individual home sites, an idea the pop star strongly disliked.
Now with Michael gone, the Jackson estate inherits his rights under the Colony contract. “If we decided to change the look and feel of the place, they would have a say,” says the Colony exec. “So if we wanted to turn it into a museum and tribute to Michael, they would have to say yes. But if we just want to sell it—which is what we are going to do—they have no say, no rights.”
Colony briefly did consider the possibility of a Neverland-to-Graceland transformation. “It crossed everyone’s mind right away.” But architects and attorneys who did a fast study told them it was impossible due to the narrow two-lane access to the property, coupled with wealthy individual neighbors who would almost certainly oppose any commercial enterprise in their residential area. “Physically and logistically, we just couldn’t do it.” The Colony officer believes those hurdles would also bar any future owner from converting the ranch into a commercial shrine.
Is $100 million the right price? “We are in no rush,” says the Colony executive. “This is an appreciating asset. And there are people who have the money, and some of them will want to own the place that had belonged to Michael Jackson. I work for a billionaire who owns a similarly grand ranch. So I know that while there aren’t a lot of people who can afford this, the ones who can are finding us.”
Gerald Posner is the award-winning author of 10 investigative nonfiction bestsellers, ranging from political assassinations, to Nazi war criminals, to 9/11, to terrorism (www.posner.com). Posner lives in Miami Beach with his wife, the author Trisha Posner.
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Gerald Posner is The Daily Beast's Chief Investigative Reporter. He's the award-winning author of 10 investigative nonfiction bestsellers, ranging from political assassinations, to Nazi war criminals, to 9/11, to terrorism. His latest book, Miami Babylon: Crime, Wealth and Power—A Dispatch from the Beach, was published in October. He lives in Miami Beach with his wife, the author Trisha Posner.
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Gerald Posner is The Daily Beast's Chief Investigative Reporter. He's the award-winning author of 10 investigative nonfiction bestsellers, ranging from political assassinations, to Nazi war criminals, to 9/11, to terrorism. His latest book, Miami Babylon: Crime, Wealth and Power—A Dispatch from the Beach, was published in October. He lives in Miami Beach with his wife, the author Trisha Posner.
preach on
Elvis was overweight and a drug addict when he died, and they made his house a shrine! Now MIchael Jackson did too many drugs and was possibly a pedophile and they want to make his home shrine, too! What is wrong with the American people?
Newswoman you didn't read the same article I read. I read that the company wants to SELL it and they are in no hurry to do so. I also read that corporations want to use it as a retreat. I didn't see anything about shrine.
"If you don't think drugs have done good things for us, then take all of your records, tapes and CDs and burn them. Cause you know what? The musicians that made all that great music that's enhanced your lives throughout the years? Real f`cking high. The Beatles were so f`ckin' high they let Ringo sing a few songs." - Bill Hicks
Micheal Jackson and Elvis did drugs, sure. You probably don't. Ask yourself if, after all your happy days are finally done, it'll occur to anyone to preserve your house just the way it was, so that future generations can honor your memory, thank you for your many contributions to art and culture, and feel that much closer to you.
Although I would not consider myself a huge fan of either Elvis or Michael, your assessment of these two musical artists seems incredibly shortsighted and lacking in scope.
Enjoyed your blog. I personally hoped this would not become developed as a Jackson amusement park. The Santa Ynez Valley is beautiful, rural, and open. I've not only travelled there, but was married at a judge's home and honeymooned in Solvang.
I truly wish there was more web information on The Sycamore Valley Ranch, it's history as a cattle farm and the original owners.
Interesting business story! Mr. Posner's straight forward writing clarifies what logistically would be an impossibility of turning Neverland into a tourist attraction. Turning down a $100 million bid at this point shows the enormous prestige and cache this property has and will continue to have. Waiting to sell it at the right time and price with some of the proceeds going to the Jackson Family Trust will help pay down the debt load and provide for the beneficiaries. It will be interesting to know the profit participation of the Jackson Family Trust when transaction occurs.
His fans will be going there whether a museum is there or not. It would make more sense to take advantage of the situation instead of allowing the property to become worthless because anyone attempting to live there would have to put up with all the tourists as will residents of surrounding property.
Not having some type of memorial would make the situation worse because fans would drive around and go up to houses asking where Neverland is or was.
Considering the condition of the economy in general and the California economy in particular, the property may easily go down in value without the association with Jackson.
Sites of historic people or events attract attention. People still visit the site of the Clutter family murder (movie in Cold Blood) in southwest Kansas even though that happened 50 years ago.
Newswoman,
You have serious chips on your shoulders. I hope you have shoulder pads.
First, get your facts straight. Mr. Jackson was not a pedophile. Or do you live in a country where court rulings have no meaning? If you did even the most minimal of research--online even--you would see the facts in the case against Mr. Jackson were shockingly absent. Nothing happened because there was no evidence, no proof. And the people who attempted to extort Mr. Jackson had in once case, an orchestrated plan to do so which is well-documented, and in the other case, Mr. Jackson was their fourth claim to pedophilia.
But let's turn to what Michael Jackson has given to you--yes, you, your culture, your world. He has donated more than any other celebrity to benevolent funds, he was one of the first people to speak out against the phobia facing people with AIDS in the 1980s, he has in addition to the tens of millions he has donated from his own funds, helped to raise tens of millions more. His songs--from your comments it is clear you have not listened to them--advocate for the rights of people free from discrimation, hunger, class inequality and he advocated love.
Ultimately, this is a man of great human quality and love who was wronged by a great many people who haven't the basic sense to read the facts. Sure, he seems to have had a problem with drugs--I think a third of our cultures have had this problem. However, in my estimation this is more human flaw than the flaw of judging people whom you perceive to be weaker and less than you, whom you slander because you read The National Enquirer or heard it on Fox News. Maybe Mr. Jackson says it best:
"Though everybody wants to read all about it
Just because you read it in a magazine
Or see it on the TV screen
Don't make it factual, actual"
Disfasia: He was acquitted of being a pedophile, but we don't know for sure if he wasn't at some point in his life. Remember there were two cases; one was settled for millions of dollars.
But I agree with the rest of your message. He was benevolent, and any charity could call on him to do a concert or make an appearance. I believe his was an accidental OD and he didn't want to die. But the MJ we remember through accolades and tributes was the MJ of over 10 years ago, not the one of today. He hadn't recorded or toured in 20 years. I think most of us were stunned to learn of his downward spiral these past 10 years, because he hadn't been publicized (exc through the fabloids).
Although he was acquitted in a criminal trial, is O.J. Simpson a murderer?
No! Because according to a jury in the criminal trial he was found not guilty.
Disfasia: you should also check your facts. MJ was far from the most charitable celebrity, though his PR people did a good job of giving the impression of such. I assure you MJ didn't put himself millions of dollars in debt due to his charitable giving, but his insanely lavish lifestyle. In fact he gave very little of his own money to charity, period. Most of the charities he created were nothing more than tax shelters, that did nothing but protect MJ from income tax. I will say he did volunteer to give performances to some charities, as well as occasionally record songs whose proceeds benefited some real charities (unfortunately sometimes they benefited his fake ones). MJ "charitable" phase was in the 80's, letting ill children visit his ranch was really the most he did, after that his lavish lifestyle ensured every penny went to fund his own whims, but he continued to ensure the public thought he was the epitome of charitable giving. I'm not begrudging MJ any of this, his fortune was his to do as he wished with. He did not have to give one cent to anyone. However, he does not deserve to be praised as some grand philanthropist when that was almost entirely image not reality - as was the case with so much of his life. Please look into the portions of his personal tax records and even more so his non-profits 501C3 filings (which have to be available to the public) if you doubt the above.
The point is he gave more than you ever would!
Posner,
Outstanding reporting....best of luck with your ongoing story.
I followed the transcripts of the criminal trial when it was going on and it was a travesty. Hard to say what was the worst part and I was shocked at the kind of crap that the judge would allow in. One item: a book sent to Jackson by a fan that was confiscated by the sheriff many years earlier, the first time the authorities were trying to make a case against Michael Jackson. Jackson had rooms full of gifts sent him by fans and there was no evidence that he had ever even seen or touched this book. The book was not pornographic.
The first accusation against Jackson, the one that he paid millions to settle, seems to have been a shakedown. The boy's father was a dentist with access to drugs and the accusations occurred after the father had drugged the boy. Jackson wanted the LA district attorney to investigate it as an extortion plot but the DA refused to look at the accuser's family at all. Jackson really had no choice but to settle because if he hadn't, it would have resulted in a criminal trial.
I think he is an important figure mainly because of the way his career reflects on the factor of race in the popular music industry (and maybe you could make a larger societal case beyond the music industry). I don't know what to think of Michael Jackson as a human being. I was surprised that he was planning to bring his older son on stage with him. I would have thought he'd want to keep the children away from show business.
Uh, guys, re Neverland becoming an MJ theme park a la Presley's home.
Graceland is a tacky mansion in Memphis. Neverland is an extremely valuable property in one of the primo regions of California. with a very large mortgage on it, to boot.
Anybody who thinks this place is going to be open to millions of sad sack MJ fans doesn't know much about California real estate.
Most of the jackson junk-- the carney rides and petting zoos etc have already been removed. And nobody in that neighborhood would sit still for Neverland being turned into a commercial enterprise and a tourist trap.
Time changes all things. Let's see what is in store for this. Could become a museum one day.
Rich people won't even tip 10 percent at a restaurant, but they'll waste millions on this load of crap. Yeah, greedhead, hang onto it , and it will appreciate like all the real-estate in California is presently doing.
The neighbors have banded together to prevent any museum/memorial-type situation to be made at NLR. The zoning in that area won't allow it, there isn't enough access to the place by roadways. MJ said he's NEVER go back there, and he never did. Why then, are people, and some of the more money-grubbing Jacksons so insistant that NLR be turned into some kind of shrine? This goes totally against MJ's wishes. We have his music and dancing on film--why isn't that enough?
Thank you.
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