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Firing John Branca

Date confirmed in “Los Angeles Times” (archived)

“Los Angeles Times” (November 15, 1990) (archived)

Yetnikoff’s relationship with Jackson deteriorated in June when he got into a dispute with rival record industry mogul David Geffen over Jackson.

Yetnikoff and former Jackson attorney John Branca had opposed a Geffen effort to get Jackson to perform for the soundtrack of the movie “Days of Thunder.”

Shortly after the dispute, Jackson fired Branca, hired new lawyers and advisers, and asked CBS Records to renegotiate his current record contract, which would have paid him an estimated $18 million for his next album.

While no entertainer apparently has a record deal that rivals Jackson’s current pact with CBS Records, Jackson, who is known to be obsessed with setting music industry precedents, wants to make sure his deal far outdistances that of any other artist, including his sister Janet Jackson, who is currently renegotiating her contract with A&M; Records.

Randy Taraborelli, biographer, “Michael Jackson: The Magic, the Madness, the Whole Story”

By the summer of 1990, Michael had also begun to have doubts about John Branca. In recent months, despite John’s many professional strengths, Michael allowed his insecurities – and it was said by his associates, David Geffen’s personal feelings about John – colour his perception of the high-powered attorney. For instance, Michael suddenly became overly concerned about the identities of John’s other clients. Frank Dileo was not permitted by Michael to even have other clients, but John was an attorney who had been practising law before that day in early 1980 when Michael came into his office. By 1990, he had twenty-five clients in addition to Michael.

Earlier, in 1988, John Branca had represented The Rolling Stones’ Steel Wheels international tour. When Michael telephoned him one day about a business matter, John mentioned that he would be in Barbados for a week. Michael wanted to know the reason for the trip. When John told him it was for business purposes, Michael became suspicious. He wanted to know what kind of business John had in Barbados. Rather than lie, he told him that he was meeting with Mick. ‘Mick? You mean Mick Jagger?‘ Michael wanted to know. He was upset.

John finally admitted that he was representing The Rolling Stones tour. ‘Well, is it a big tour?’ Michael asked. ‘It’s not going to be as big as mine, is it? It’s not going to be bigger than mine, is it?’

There was probably no way to calm Michael down at that point. Next, he wanted to know where the Stones would be playing. When John reluctantly told him they were thinking about the Los Angeles Coliseum, Michael became even more anxious. ‘The Coliseum!’ he exclaimed. ‘The Coliseum! Why, that’s bigger than the [Los Angeles] Sports Arena, where I played. How many dates? They’re not playing as many dates as me and my brothers played at Dodger Stadium, are they?’ He was frantic. The only way to end it with him was for John to beg off the line, saying he had another call.

When John Branca took on Terrence Trent D’Arby as a client, Michael was again upset. He considered D’Arby competition, just as he did Prince. Michael asked John to drop D’Arby. John said he would do it if Michael absolutely insisted upon it. However, Michael then telephoned D’Arby, with whom he had never spoken, to let him know that he (Michael) had no control over John Branca, and that if the attorney should ever drop him as a client, it would be entirely his decision because, as Michael told D’Arby, ‘I have no problem with Branca representing you.’ Actually, Michael was trying to maintain friendly relations with D’Arby in case the two should ever decide to record a duet sometime in the future.

When John Branca found out what Michael had done (Terrence Trent D’Arby’s manager telephoned John immediately after D’Arby had hung up with Michael), he was as disappointed in Michael as he was angry. In the end, John decided not to drop D’Arby as a client; Michael just had to live with it.

Most observers felt that representing Michael had become more taxing and demanding than ever for John Branca. In the spring of 1990, John and Michael had a meeting during which John said he felt the time had come for him to share in the equity in Jackson’s publishing company. He explained that he wanted to devote as much time to developing Michael’s publishing holdings as possible, and in return he wanted five per cent of those profits. John must have known that it would be risky to make such a proposition because Michael is known to be thrifty when it comes to compensating his representation. He feels that the occasional Rolls-Royce or expensive watch is a fair demonstration of his appreciation to his advisers; he doesn’t favour giving them extra percentages. Up until this time, John had worked for Michael on a monthly retainer. On certain extraordinary deals, a percentage would be worked into the deal for him. For instance, he did receive five per cent of the profit on the Victory and Bad tours. (In contrast, though, Mickey Rudin, Frank Sinatra’s attorney for years, received ten per cent of Sinatra’s tours.) At this time, Michael was feeling psychologically poor as a result of the Moonwalker debacle. He told John he would consider his proposal. Then, he decided to talk the matter over with David Geffen.

At this same time, David Geffen was trying to convince Michael that he should break his CBS Records deal by utilizing a contract loophole. Michael’s contract with CBS had been signed in 1983, and then amended after Thriller in 1985. David felt that the seven years that had lapsed since the original agreement gave Michael an edge in renegotiating the entire deal because California state law forbids personal service contracts of a longer duration. Industry observers felt that David was trying to lure Michael away from CBS so that he could sign him to his own label.

Though Michael’s contract with CBS had expired, he still owed four more albums to the label. Yes, after the seven-year duration, Michael could probably have left CBS Records. The company could not enjoin him from recording for another label. However, it could sue him for damages, the amount of which would be based on the estimated loss of profits from the albums he did not deliver. This dollar amount would be derived from the combined sales figures of Off the Wall, Thriller and Bad. CBS Records could have mounted a huge lawsuit against Michael. David was willing to overlook the possible litigation (‘It’ll all work itself out,’ he said), however John Branca was not willing to do so, and he was the one representing Michael, not David.

When John and David engaged in a heated argument over the logic of trying to extricate Michael from his recording contract with CBS Records, John told him to mind his own business. David hung up on him.

David then telephoned Michael and, apparently, tried to sour him on John Branca by saying that John had been uncooperative, and that the reason Michael didn’t have ‘a good deal at CBS’ was because of John’s close relationship with the company president, Walter Yetnikoff. Michael allowed himself to be swayed by David, never stopping to consider that he truly did have the best deal in the record industry and that John Branca was the man who had secured it for him.

John Branca’s work with Michael Jackson can only be compared to Colonel Tom Parker’s representation of Elvis Presley. Even though John was not Michael’s manager, he certainly had the kind of impact on his career that Colonel Tom had on Elvis’s. In 1980, when John began representing him, Michael’s net worth was barely a million dollars. Ten years later, in great part due to John’s negotiating skills, the net worth was close to $300 million, including the publishing holdings, which were valued at close to $200 million. That leap in holdings was a tribute to Michael’s artistry, no doubt; but it also spoke well of John’s negotiating skills. Despite all they had been through together, Michael now doubted John.

A couple of days after John’s difficult conversation with David Geffen, John met with Michael. Something had changed in Michael, and it became clear as the two of them spoke; Michael barely listened to what John said and he seemed hostile towards him. The two engaged in a heated discussion about CBS and whether or not Michael was obligated to record for them. The meeting did not go well.

When it ended, John went back to his office in Century City. The next day, he received a letter by special messenger from Michael’s new accountant, Richard Sherman, whom John had recently hired: John’s ‘services were no longer required by Michael Jackson.’

Michael was sorry to lose John Branca, but he didn’t get sentimental about the loss. The way he looked at it, John made a fortune doing what he loved to do, representing Michael in major show-business deals. When it was over, it was over. Michael swiftly replaced him with three seasoned law veterans: Bertram Fields (for litigation), Alan Grubman (for negotiations with CBS), and Lee Phillips (for music publishing) – all closely associated with David Geffen.