MICHAEL JACKSON’S UFC CONNECTION: AN IN-DEPTH LOOK AT THE KING OF POP’S BILLIONAIRE BENEFACTOR THOMAS BARRACK

Posted on | July 2, 2009 | 4 Comments

By: Rich Bergeron

Michael Jackson’s recent death has created a gigantic media frenzy around his former estate “Neverland” and whether or not the location could ever be turned into a “Graceland” type of museum. Despite the rampant rumors and press attention on such a convenient and seemingly no-brainer solution to memorializing the fallen superstar, there seems to be a huge uphill battle to fight if that reality is ever to materialize. Still, the legend that is Michael Jackson will never stop a steady flow of regular fans from flocking to Neverland in the future, museum or not. So, the property itself could potentially be very valuable to the current owner, who happens to have a close connection to the 90 percent owners of the UFC, Lorenzo and Frank Fertitta III.

Neverland Ranch Owner Thomas Barrack’s Colony Capital helped take Station Casinos off the publicly traded table in early 2007. This bold move allowed the UFC-owning Fertitta Brothers to regain almost complete control of the operations of the old family business, reportedly started by their father Frank, Jr. with a one dollar investment in the 60s. For just a $90 per share buyout the Fertittas and Colony reclaimed the company and in the span of 2 years have driven the business to the brink of bankruptcy, burdened it with an estimated $5.7 billion debt load, and are now staving off creditors to keep hope alive.

Barrack not only has a special place in his heart for Neverland and Michael Jackson, but he also financed Jackson’s lavish lifestyle and was a significant investor in the world tours scheduled for the superstar’s comeback. Known for taking risks with his fortune, Barrack’s position in relation to Jackson’s estate might be one of those risks that pays off handsomely or fails miserably depending on the developments to come and the inevitable court battles that may ensue in the wake of the celebrity’s death. As for Neverland, all sorts of suggestions are being made for the attraction, one of which calls for dismantling the mansion piece by piece and bringing it to Vegas to make it a tourist attraction, memorial, and museum all in one location.

Whatever happens down the line, Neverland is already playing a central role as the stage for Jackson’s public viewing this Friday. This will be the first big test to see just what kind of traffic the area can sustain and whether or not any major commercial development there could ultimately be successful. Though there is some controversy swirling, Barrack is not surprisingly keeping a cool head and encouraging his neighbors to respect the mourners rights to publicly grieve.

Barrack bought Neverland out from under Michael Jackson in May of 2008 when the superstar was having trouble keeping up with mortgage payments. It is obvious the investor and the music legend became fast friends. Barrack rescued Jackson after the entertainer, a neighbor to his own ranch in the area, defaulted on a reported $24.5 million note on the Neverland property. Prior to Jackson purchasing and transforming the location into Neverland in 1988, the property was known as the Sycamore Valley Ranch. Barrack had already made his fortune in crafty real estate investments by the time he took over Neverland and helped find Jackson other suitable living arrangements in Las Vegas. Soon there were talks of a round of Las Vegas shows Jackson could do, and this of course grew to world tour planning proportions. Barrack pooled his resources to fuel the comeback plan and was not the only one putting money in Jackson’s pocket to make the star go along with the idea of a fully-involved and dedicated world tour.

It will be interesting to see how Barrack emerges from this situation and how it truly impacts his bottom line. It’s doubtful that if he does hit the jackpot on Jacko’s demise he’ll have enough to bail out Station Casinos and prevent bankruptcy, but he may end up with more to bring to the table for the reorganization. Also, if he gains some rights to use Jackson’s image and name to promote their initial “Thriller Casino” vision, the situation could perhaps get enough big money individuals to invest heavily to make the Station Casinos comeback that much stronger.

Despite all the extensions granted by the casino’s debtors and other recent news items discussing the company’s losses and imminent bankruptcy, it doesn’t seem like anyone associated with the company is all that concerned about it collapsing. For instance, Frank Fertitta III just bought a $28 million home on the waterfront in Orange County’s Emerald Bay, and Station Casinos is planning what they consider the largest fireworks show in the history of Las Vegas for July 4 this weekend. The Fertitta brothers also benefited from huge 2007 bonuses from stock gains totaling over 100 million for each brother.

Meanwhile, the UFC continues to put on a rapid fire pace of shows in Las Vegas where there is little overhead and they have a ton of connections. Michael Jackson liked the Vegas atmosphere, too, and at times Jackson stayed at Green Valley Ranch, jointly owned by the Fertitta and Greenspun families. Jackson even supposedly attended UFC 84 incognito and wheel-chair bound.

So, it is no surprise that UFC 100 will feature a Michael Jackson tribute. Michael Jackson’s death, although tragic and sudden, might have a very beneficial domino effect if it turns out to be one of Thomas Barrack’s most ingenious business moves to fund Jacko’s last days. Whether all that will mean the UFC ultimately benefits as well will depend on whether Barrack stays heavily devoted to the Fertittas and Station Casinos.

Only time will tell if Neverland becomes Jacko’s Graceland and if Barrack’s business team can still capitalize on the Jackson situation even despite all the canceled tour woes and obstacles in the way of making Neverland a destination location. They say timing is everything, and Thomas Barrack’s timing in this situation has put him in a position to really have some leverage when it comes to Michael Jackson’s legacy.

I myself would try to organize a huge festival in Jackson’s honor on the Neverland estate and call it “Jackostock” if I were in Barrack’s shoes. Make it a benefit concert to help Jackson’s favorite charities, and everybody wins. Who’s with me?