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Jackson Memorabilia Tour Approved

A judge has approved a deal between the estate of Michael Jackson and a promoter to exhibit his memorabilia, over the objections of Mr. Jackson’s mother, who fought the move citing concerns that it could harm his legacy and was not competitively bid.

The deal, approved Friday by Judge Mitchell Beckloff of Los Angeles Superior Court, is expected to earn Mr. Jackson’s estate up to $6 million. After hearing four hours of mostly closed-door testimony, Judge Beckloff said there was “no question in my mind this agreement is in the best interest of the estate.”

Judge Beckloff noted the lack of a reasonable alternative presented by lawyers for Katherine Jackson, Mr. Jackson’s mother, alluding to a mention of a company starting up in the Middle East that might be able to handle the exhibitions.

“The most foolhardy thing the administrators could do is connect with some start-up company from the Middle East,” Judge Beckloff said.

The exhibition is scheduled to open in the O2 Arena in London, where Mr. Jackson was set to start his “This Is It” tour this summer.

“I think everybody is going to be thrilled with the results,” said John Norman, president and chief executive of the exhibition’s promoter, Arts and Exhibitions International. “It will be great to celebrate this man’s legacy.”

AEG Live, which owns Arts and Exhibitions International and is the company that was preparing Mr. Jackson’s 50-concert comeback tour before he died on June 25, plans to open the exhibition around the Oct. 28 release of a film using footage of the singer’s final rehearsals.

Lawyers for Mrs. Jackson had tried to block the deal, arguing that it should have been competitively bid and that the estate should have had a larger cut of the proceeds than the 50-50 split negotiated with AEG.

John Schreiber, a lawyer for Mrs. Jackson, suggested that there was no need to hurry or conduct “a fire sale” of the memorabilia.

But Judge Beckloff chided Mr. Schreiber, saying his “hyperbole about rushing to judgment and fire sale and giving away the store” was inappropriate. The judge said he was convinced that the negotiations were aboveboard.

Meg Lodise, a lawyer appointed to represent the interests of Mr. Jackson’s three children, agreed that the deal was in the best interests of the children, who are entitled to 40 percent of their father’s estate. Mrs. Jackson is the beneficiary of another 40 percent, and 20 percent will go to charities.

Mr. Norman said the memorabilia exhibition called for a three-city tour spread over two years. He said that he did not know what would be included in the exhibition, but that there were warehouses of material from which to choose, including items from Mr. Jackson’s Neverland Ranch near Santa Barbara and the “This Is It” shows. The selection process will begin Monday, he said.

Kathy Jorrie, a lawyer for AEG, said in closing arguments that AEG had gone from being a potential creditor to the estate, with millions of dollars in claims, to becoming a partner in its success. She said that some of the costs of the public memorial for Mr. Jackson at the Staples Center here were factored into the agreement, but that the exact amounts were confidential.

Burt Levitch, another lawyer for Mrs. Jackson, said he hoped AEG would show sensitivity in how it portrayed Mr. Jackson. The contract approved Friday requires the promoter to collaborate with the administrators of the Jackson estate, but Mrs. Jackson may not have a formal say in how that will be done.

Mrs. Jackson’s lawyers have also filed a motion seeking Judge Beckloff’s permission to contest the ability of John Branca, a lawyer, and John McClain, a music executive, who were named as co-executors in Mr. Jackson’s will, to administer the estate. A hearing on that motion is scheduled for next month.
 

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