Fortress Group Saves Michael’s Neverland: But Why?

I’m sure you’ve all heard the story. Michael Jackson was behind on his house payments on the Neverland Ranch in California. He apparently hasn’t even lived there since 2005.

The exotic zoo and carnival rides were dismantled a long time ago.

The bank was all set to auction off the house on March 19 in a foreclosure auction.

But, he’s managed to “save” the house from foreclosure. From the AP:

The pop star’s attorney, L. Londell McMillan, told The Associated Press his client has worked out a confidential agreement with Fortress Investment Group LLC allowing him to retain ownership of the estate.

Whether he’ll keep it for long, however, remains to be seen. Jackson is said to be living in various places, including overseas, and his family has said that when dozens of sheriff’s deputies raided the place in 2003 they destroyed the fond feelings he once had for Neverland.

What I find interesting is that Jackson’s lawyer specifically says, “allowing him to retain ownership.”

What kind of a deal was it?

Jackson reportedly owes the bank $24.5 million.

So Jackson made a deal with Fortress Investment Group LLC that they would pay off his debt- in exchange for…what?

Fortress Investment Group is a publicly traded hedge fund. Ticker FIG.

On a separate issue: how would you feel if you were a shareholder in FIG? Would you think Neverland was a good investment?

Why not just let it go to the foreclosure auction if you’re Fortress?

Presumbaly, there could have been other possible bidders at $24.5 million at the auction. Maybe Fortress believed they were getting a better deal by bailing him out at $24.5 million.

The ranch is 2500 acres in a very ritzy and expensive area of California.