The deal, for about 10 recordings through 2017, will guarantee the Jackson
estate up to $250 million in advances and other payments and offer an especially
high royalty rate for sales both inside and outside the United States, according
to people with knowledge of the contract who spoke anonymously because they
were not authorized to speak about it publicly.
Sony’s contract is a bet on the continued appeal of Mr. Jackson, whose sales
spiked after his death in June at the age of 50. With overall record sales on a
decade-long plunge, mega-deals like this one have become rare, and Mr. Branca
said the deal “exceeds all previous industry benchmarks.” Five years ago Bruce
Springsteen signed a deal with Sony worth a reported $110 million, and in 2008
Live Nation and Jay-Z struck a $150 million deal for recordings, concert tours
and other rights.