Contract Players : Who’s Worth More: The Material Girl or the Moonwalker?

Who’s worth more to a giant entertainment conglomerate: Michael Jackson . . . or Madonna?

That anyone could be worth as much to a company as Jackson was unthinkable a year ago when Sony Music and the Moonwalker signed a blockbuster deal that they proclaimed could mean $1 billion for the superstar over the next decade.

Music industry sources quickly pointed out that the contract only guaranteed Jackson about $60 million, but it was still an unprecedented amount.

Entertainment attorneys immediately heralded the deal as the dawn of a new age in superstar contracts and predicted that other acts would soon be asking for the same.

That’s precisely what Madonna appears to be doing now.

Her long-rumored Time Warner deal is expected to be announced any day and the speculation is that it will guarantee the Material Girl between $45 million and $60 million over approximately the next 10 years. The multimedia agreement reportedly will give Madonna her own record label and boutique company to pursue music, publishing, book, film, television and merchandising opportunities.

Is she really worth that much--compared to Jackson?

Entertainment industry insiders say absolutely .

Some even believe Madonna deserves more than Jackson.

“Michael is an extremely talented artist, but his problem is that he’s completely out of touch with reality and I think that will ultimately hurt his career longevity,” said one executive, who--like all others questioned--asked not to be identified.

“Madonna, on the other hand, is totally down-to-earth and in control. She’s brash and sexy and knows exactly who she is. I don’t think there’s another entertainer out there who touches the hem of her garment--that is, when she’s wearing one.”

Other officials echoed that view.

“What people like about Madonna is that she’s not afraid to whip the Establishment the bird,” one observer said. “They like that she’s upfront about her sensuality, but she has a lot more to sell than just sex. Her talent is undeniable.”

Suggested another: “If you ask me, this is an artist who has the ability to reinvent herself anew for decades. The fact that her art comes packaged with a sexual edge just makes it more exciting. Madonna is a true rebel.”

So what’s her deal going to be like?

Representatives for Madonna and Time Warner declined to discuss details of the contract. But sources said many aspects of the 33-year-old pop siren’s multimedia pact are quite similar to the Jackson/Sony deal.

As outlined by several sources, Madonna’s old personal recording deal, on which she still owes three albums, paid her a $3-million advance per album plus an 18% royalty rate on every record sold. The proposed arrangement reportedly will extend the number of albums she owes to seven, and up the advance to $5 million and the royalty rate to 20%. Warners will also provide Madonna with approximately $3 million per album to produce videos for her own singles.

Sources revealed that Time Warner will also commit between $2 million to $5 million a year to underwrite operating expenses for Madonna’s new record label--a 50-50 partnership venture rumored to be named either Madman or Maverick. And Madonna has been given full authority to sign acts to the label.

“I think it’s very exciting to have a woman with as much savvy as Madonna running a record company,” said one veteran manager. “It’ll be a real plus for the label in trying to sign new artists--no question about it.”

Some executives, however, think Madonna’s value--especially as a recording artist-actress--is being overstated.

“I think she’s peaked,” said one official. “She’s just about played out the shocking sexual image. Besides, she’ll be pretty old by the time this deal ends. America isn’t too hot on middle-aged pop sex goddesses. Even if she can make the transition from video vamp to serious actress, is there anybody who really believes Madonna has what it takes to become a movie star?”

Added a second executive, who said he thinks Jackson has the greater long-range potential: “Michael is the biggest money-maker in the world. He has a much more commercially exploitable image that appeals to a much broader demographic than Madonna. I don’t know how she could ever expand her audience. She’s not a PG-kind of artist. She’s a cult figure.”

Still, Time Warner seems committed to Madonna.

The conglomerate will reportedly also provide her with about $1 million to establish the offices of Home, a boutique enterprise to pursue film and television opportunities.

Madonna will head the company and receive an estimated $500,000 annual budget to underwrite a small staff of media executives to develop film and television scripts specifically for her.

One of the most novel components of the deal, insiders said, is Time Warner’s apparent commitment to Madonna’s future in television. The company has reportedly agreed to put up an estimated $2 million for two upcoming HBO concert specials.

“Madonna is clearly a recognizable name with a target audience that goes to movies,” said one prominent attorney who represents several of the film business’s most successful directors. “If she could find her niche in the movies, I think she could be a very huge film star. The question is whether or not she can hold her own as the lead in a movie. As of yet, there is really no way to test her drawing power in that capacity.”

Madonna’s Time Warner pact also includes multimillion-dollar book, merchandising and music publishing provisions. Her first book project will be a limited edition coffee-table collection of erotica featuring her in nude photos.

“Time Warner is betting a wad of dough on this deal,” said one industry veteran. “But they know what they’re doing. They aren’t going to lose a penny on Madonna. The critics have been saying she was a fluke from the get-go, but she baffles them every time out. She’s a bona fide star.”

Madonna’s and Michael’s Big Deals

MICHAEL JACKSON LABEL: Sony Music ALBUMS: 6 MOVIE DEAL: Yes MERCHANDISING: Yes OTHER PERKS: Video software, his own label and 50% of profits ESTIMATED TOTAL: $60 million

MADONNA LABEL: Time Warner ALBUMS: 7 MOVIE DEAL: Yes (plus TV) MERCHANDISING: Yes OTHER PERKS: Her own label and 50% of profits ESTIMATED TOTAL: $45 million to $60 million