Thursday, July 15, 2010

My Opinion of the AEG Contract Signed by Michael Jackson

The contract is available here:

http://www.radaronline.com/sites/default/files/AEG%20contract.pdf

My opinion (and I stress opinion) of the AEG "Agreement" with Michael:

First, the date appears to be marked out on the first page for some reason. A date should always be placed on a document, regardless of its possible significance, so hopefully that is in fact the date, otherwise, what a sham. I will consider that mark out the date, however and move on. This document is also referred to as an "Agreement" with very little detailed information provided about specifics which leaves a lot of room for interpretation and misunderstanding, especially on behalf of the non-authoring party, Michael Jackson Company, LLC and more specifically Michael, the lay man. For this document to be potentially worth millions of dollars and months (if not years) of business transactions, it seems to be very small, too small, in fact. It is merely 14 pages, not including certain exhibits (other documents). Also notice this "Agreement" begins with "Dear Dr. Tohme" which a) makes it appear to be a letter, not a contract (why not use a cover letter addressed to Dr. Tohme to introduce a legitimate contract?), b) is not addressed to Michael Jackson, the one with all at stake here (Michael goes on to sign it as the artist and representative for The Michael Jackson Company, LLC--Dr. Tohme does not sign the contract anywhere though through AEG Live's eyes he was the point of contact for the company) and c) it is highly unprofessional in appearance. Most professional letters would state "Dr. Tohme:", which Dr. Tohme has yet to prove he is in fact a legitimate doctor, actually. He apparently is not an attorney, either. Being that this "Agreement" had attention directed to Dr. Tohme, one would assume him as apparently the one who helped negotiate this "Agreement" between Michael and AEG Live, as well as the one who would have had knowledge about this contract and would, or should have relayed understanding to Michael regarding it, which likely should have been an attorney doing this along with a manager--not just someone who is reportedly a businessman with no previous business experience related to the music business known to exist.

Section 1: Definitions:
As far as I know, a copy of Exhibit A which should include what is meant by Terms, Shows, Territory, etc., which are key to interpreting this document is not public.

Section 3: Itinerary of Shows:
Verbatim from the "Agreement":

"Artistco (The Michael Jackson Company, LLC) and Promoter (AEG Live) shall reasonably cooperate with each other in an effort to arrive at mutually approved itineraries for each leg of Shows during the Term; provided, however, it shall be unreasonable for Artistco (The Michael Jackson Company, LLC) to withhold or qualify its approval of any itinerary or amended itinerary proposed by Promoter if the date range of such itinerary does not exceed ten (10) weeks, the frequency of Shows within such itinerary does not exceed one Show per day and 3.5 Shows per seven-day period, on average, and the locations of the proposed venues are in metropolitan areas. Artistco (The Michael Jackson Company, LLC) hereby pre-approves up to thirty one (31) Shows, or such other greater number as agreed by Artistco (The Michael Jackson Company, LLC) and Promoter(AEG Live), at the 02 Arena in London, England between July 26 and September 30, 2009. Subject to the foregoing, Promoter (AEG Live) and Artistco (The Michael Jackson Company, LLC) shall mutually agree on the number of legs of Shows and the number of Shows in each leg during the Term, and Artistco (The Michael Jackson Company, LLC) shall supply a first class performance of Artist (Michael) in accordance with this "Agreement" at all the Shows. Without limiting the generality of Promoters right to schedule Shows throughout the Term or Artistco’s (The Michael Jackson Company, LLC's) obligation to supply a first class performance of Artist (Michael) at all such Shows, in no event shall the number of Shows performed by Artist (Michael) in the first leg of the Tour be less than eighteen (18) Shows unless otherwise directed by Promoter. It shall be unreasonable for Artistco (The Michael Jackson Company, LLC) to with hold its approval of adding Shows to any given leg of the Tour or adding legs of Shows to the Tour during the Term (so long as the number of Shows in any given leg do not exceed one per day and 3.5 per seven-day period, on average) if Promoter (AEG Live) demonstrates to Artistco (The Michael Jackson Company, LLC) that such additional Shows and/or legs are necessary for Promoter (AEG Live) to recoup the Advances in accordance with the terms of this "Agreement". Prior to the commencement of any leg of the Tour, Promoter (AEG Live) shall provide Artistco (The Michael Jackson Company, LLC) with financial models based on estimated Pool Expenses, Production Costs and Pool Revenue based on projections that assume Promoter shall sell tickets to ??? of the sellable capacity of the applicable venues. The parties shall attempt in good faith to agree upon the number of Shows that need to be scheduled for Promoter (AEG Live) to recoup all Advances in connection with such leg. As used here In, “leg” refers to a segment of Shows which are contiguous with each other in terms of time and geographic region. (e.g., North America,. the United Kingdom, Europe) and are not separated by more than three (3) weeks.

My interpretation of this above section of the "Agreement":
The Michael Jackson Company, LLC and AEG Live should attempt (but is not required) to agree to concert dates for each leg for the term. However, The Michael Jackson Company, LLC has no reason to either agree or disagree (effectively have no say either way) with any concert dates changed or proposed to be changed by AEG Live if the changes made or proposed are not longer than 10 weeks, do not exceed more than one show a day, include more than 3.5 shows a week and the locations are in big cities. Please understand the above sentence gives AEG Live the right to have changed/add tour dates so long the change was not more than 10 weeks, did not add two or more shows to one day, did not add more than 3.5 shows in a week and did not occurs in a rural area. The Michael Jackson Company, LLC pre-approved up to 31 shows (that does not mean 31 shows were deemed necessary per the "Agreement") and more could be added if agreed by The Michael Jackson Company, LLC and AEG Live for the London O2 Arena between the dates of July 26th and September 30th, 2009. To me, this is like being pre-approved for a $1 million mortgage loan but you bought a house for $750,000 instead.

Please note: "This Is It" was scheduled to begin July 8th, was then pushed back to July 13th and the first leg was to conclude September 29th, 2009 (approximately an 11 week leg). Figuring in with the July 13th start date, that was to be a total of 27 shows for the first leg. Furthermore, there were 4 shows scheduled in one week, which is against the terms of this "Agreement": July 26th, July 28th, July 30th and August 1st which would is more than the 3.5 shows in one week. It has been stated by Frank DiLeo that before he replaced Dr. Tohme, the concerts were arranged in a format that was much more grueling than the dates that ultimately became the "This Is It" dates (4 or more shows a week).

The Michael Jackson Company, LLC and AEG Live were to come to an agreement on the number of legs and number of shows in each leg (however, remember that AEG Live had the right to change or propose changes so long as they were did not violate the four terms mentioned above (not longer than 10 weeks, etc.). Michael was to give a "first class performance" with each show. Without limiting AEG Live's right to schedule shows throughout the term (I assume the entire worldwide tour), and without interfering with Michael's obligation to give a "first class performance" at every show, in no event shall Michael have performed less than 18 shows in the first leg (he was scheduled for 27) unless AEG Live says there should or could be less done which could have made 10 shows theoretically possible, which is the amount Michael announced in the press conference to do in London, not for the duration of the term with AEG Live. The Michael Jackson Company, LLC had essentially no right to deny the addition of shows to legs of the tour during the term as long as there is not more than one show a day or 3.5 shows in 7 days ("on average", according to the "Agreement") if AEG Live proves to The Michael Jackson Company, LLC that more shows and/or legs are needed to for AEG Live to recoup their advanced costs for the shows. In other words, Michael was not allowed to disagree with the addition of shows if AEG Live found more shows necessary to cover their upfront costs for the tour. AEG Live and The Michael Jackson Company, LLC should attempt but is not required to agree upon the number of needed shows for AEG Live to recoup the advanced money for the shows. Thus, Michael had no genuine say in with this contract so long as AEG did not extended an itinerary over 10 weeks, add more than one show to a day, add more than 3.5 shows in one week or ask for a show in a non-metropolitan area. Michael was bound to oblige to AEG Live's tour schedule if they deemed it needed to gain back costs advanced to Michael. It is possible, then, for AEG to have agreed to 10 shows at the London O2 Arena. Michael did not say this was his final concerts but rather his final shows in London. Though 31 shows were pre-approved at the Arena that does not mean they were set in stone to be done, nor does it say the Artist but rather Artistco (The Michael Jackson Company, LLC) agreed to this number of pre-approved shows. Was it Michael or Dr. Tohme who agreed upon that number since Dr. Tohme is the one who is referenced as the point of contact for The Michael Jackson Company, LLC.

Section 4: Artist's (Michael's) Compensation
4.1 Michael was to be compensation based on contingency means Michael was likely to be paid but it was not guaranteed. Michael was entitled to receive 90% of the (marked out--earnings?, profits? etc.?) on a fully cross-collateralized (http://en.wikipedia.org/wiki/Cross-collateralization) basis, after expenses and revenue were tied together and reviewed. A portion (not all) of his likely-to-be-paid payment was to be paid at the conclusion of each leg (meaning his first portion of payment would have occurred sometime after September 29th, at the conclusion of the first leg of the tour). He was not to be paid after each show which has been customary for some artists. Within ten days of September 29th, AEG Live would have given The Michael Jackson Company, LLC a preliminary statement of the shows, including what money was spent and what was made (expenses and revenues). Within five days after that, The Michael Jackson Company, LLC would be paid some unknown equivalent amount after AEG Live recouped any monies towards the advanced monies given to The Michael Jackson Company, LLC for the shows. The Michael Jackson Company, LLC would be paid some amount of the "Contingent Compensation", "if any" then. The "if any" clause is actually verbatim from the "Agreement". By no later than 60 days (2 months) after the last show of the term (not leg) AEG Live would provide Michael with a final settlement that was fully-cross collateralized (factoring in both expenses and revenue). If overpaid, The Michael Jackson Company, LLC was to return that overpaid amount to AEG Live. AEG Live was allowed to make up for any monies owed by The Michael Jackson Company, LLC. AEG Live was to give The Michael Jackson Company, LLC a list of revenues and expenses twice a month.

4.2 Most of this clause is marked out. However, 4.2.1 refers to Exhibit B (the inducement letter) and Exhibit C (the promissory note). These are not public, as far as I know. Michael 's belongings were not used to secure the promissory note but anything owned by his company was, meaning, if Michael or his company failed to meet the requirements of the inducement letter, then AEG Live would retain control and possession of The Michael Jackson Company, LLC's belongings, whatever those may be. Michael and his company were loaned money by AEG Live against The Michael Jackson Company, LLC's property. The loan was to be repaid based on the agreement above (the Contingent Compensation clause).

Section 5: Promoter's Responsibilities
From "time to time" AEG Live would provide The Michael Jackson Company, LLC with possible concerts dates for each leg of a worldwide tour. Not much else in this section is of significance.

Section 6: Artist Responsibilities
The Michael Jackson Company, LLC should respond to possible tour dates within 5 days (though it does not specify that an agreement was necessary, only that a response shall be made). Michael was to perform at least 80 minutes, "first class", with no shows going over 3.5 hours. The Michael Jackson Company, LLC and Michael himself were to maximize revenue (Pool Revenue). The Michael Jackson Company, LLC was to pay for management, agency and legal fees. Please note, there is an area marked out that covers the name of an entity who was an exception to this clause. Whomever this person or entity was, they were being paid by AEG Live and this was being included as a Production Cost. Otherwise, the Michael Jackson Company, LLC was to pay for all other fees related to management, agency, and legal costs.

Section 7: Ticketing Activities:
The Michael Jackson Company, LLC was allotted 10 complimentary tickets per show. AEG Live was to control ticket sales and as allowed to use secondary outlets for ticket sales. Apparently they used the company Viagogo as an attempt to scalp tickets to the "This Is It "shows in an attempt to maximize gain, with AEG Live to receive 80% of the profits (this information about Viagogo is NOT in the "Agreement" but has been revealed by other sources that can be provided).

Section 8: Production of the Shows
Michael was to work closely with AEG Live concerning the "creative aspects of the design of the Show", through approved parameters and a budget that was agreed upon by both Michael and AEG Live, while also using third-party vendors for assistance with the shows. Furthermore, The Michael Jackson Company, LLC was to pay AEG Live a producer's fee, and AEG Live could deduct that fee amount from amounts to be paid to The Michael Jackson Company, LLC.

Section 11: Approvals
The Michael Jackson Company, LLC and AEG Live had the right, before any show, to pre-approve many items including a) "any itinerary changes including any and all decisions to add multiple dates". Perhaps some clarification should have been made by AEG regarding this clause as is highly vague but it appears to allow the addition of shows and if the terms in Section 3 apply, which they should, then Michael nor is company could deny additions of shows so long as they did not break the four fundamental rules that were stated above. Furthermore, neither The Michael Jackson Company, LLC (nor AEG Live though they did not have many stipulations against them) could essentially deny or delay approval of such changes when approval or consent is required. Remember, consent was required by Michael and the Michael Jackson Company, LLC especially concerning the recoup of advances paid to. Seems to imply that "no" was not an answer for Michael in most instances, in my opinion.

Section 12: Force Majeure
If a show is cancelled from a "greater force" (ex. earthquake) then neither The Michael Jackson Company, LLC nor AEG Live shall be liable. Other sections of this clause are marked out.

Section 13: Insurance
Michael had to agree and cooperate with AEG Live's purchasing life insurance, non-performance and cancellation insurance, etc. subject to confidentiality restrictions. Michael had to consent to physicals performed for these insurances. The Michael Jackson Company, LLC must stand behind Michael being free of any limiting health factors that would have kept him from giving a "first class performance" during the unknown term (is that Michael or Dr. Tohme who stood behind that statement; regardless Michael died a healthy man with some limitations perhaps from mild lung disease). The Michael Jackson Company, LLC had the option to get cancellation insurance if available and approved by AEG Live, to cover The Michael Jackson Company, LLC profits and productions costs that would also, at minimum, equal or be more than any losses from the advances given to The Michael Jackson Company, LLC by AEG Live, with AEG Live to be named as the one paid for losses. The insurance policy would by no means alleviate The Michael Jackson Company, LLC of its obligations to pay back the advances from AEG Live to The Michael Jackson Company, LLC. Whatever AEG Live had given to The Michael Jackson Company, LLC had to be paid back--period--which is understandable. If AEG Live was to recoup the advances given to The Michael Jackson Company, LLC, then the rest of it should go to The Michael Jackson Company, LLC. If The Michael Jackson Company, LLC bought insurance to cover losses, the cost would become a Production cost and would be an expense that again relied on the "Contingent Compensation"--Michael's income for the tour. AEG Live, without permission, could obtain cancellation insurance to cover losses (Pool Expenses). The cost of that insurance itself would be a "Pooled Expense" cost, too. Apparently that would mean the cancellation insurance would be an expense incurred upon The Michael Jackson Company, LLC that again would come out of his possible income from AEG Live for the shows. Question: Did The Michael Jackson Company, LLC, acquire such insurance? All focus has been on the one insurance policy taken out by AEG through Lloyd's of London.

Section 14: Termination
Both The Michael Jackson Company, LLC and AEG Live could terminate this specific "Agreement" if one or the other failed to meet obligations. Death is not a curable event (nor is it mentioned in this "Agreement"). This clause ends by stating Michael and his company are to return advances even if this "Agreement" is terminated.

Section 16: Miscellaneous
16.1 This "Agreement" and the exhibits included (which are not public to the best of my knowledge) are meant to be a final document. Anything said previously, whether a negotiation, statement, representation or agreement is to be part of this "Agreement", but is to be considered inferior to this final document. However, neither AEG Live or The Michael Jackson Company, LLC is to have relied on any other information, orally communicated or not, that is not included in this "Agreement". Those two statements seem to be rather contradictory and vague. The "Agreement" is not to be changed unless done so in writing and signed by the party (either Michael, his company or AEG Live). Obviously some changes were made as the tour did not begin on July 26th as was the original date, as well as other dates. I seriously doubt Michael came up with the 10 show-figure all on his own to which he announced during the press conference, either. Also noticed that 50 shows were not named, either. The only number mentioned was 31 shows and those were pre-approved, not set.

16.3 To keep Michael and his company bound to perform the requirements in the contract, The Michael Jackson Company, LLC granted AEG Live the right to possible full-ownership (including rights, title, and interest) to some property or properties marked out on this "Agreement".

I do not have a background with law and I am not familiar with other written tour contracts, but I would like to know if it is a bit strange to ask for collateral for a tour. If AEG had such belief in Michael and his abilities to perform, which was has been implied by Randy Phillips many times over, then why did they so heavily guard their monetary advances to Jackson? In this "Agreement", very little control was given to Michael and The Michael Jackson Company, LLC. Basically no control was given to Michael or The Michael Jackson Company, LLC when it came to how many shows were to be done. This "Agreement" leaves much room for interpretation for the amount of concert dates, too, and gives AEG the full right to deem the number they feel necessary especially concerning the need to recoup advances for the shows given to Michael and The Michael Jackson Company, LLC. One should keep in mind, this "Agreement" was for a world-wide tour (that likely is what is referred to as the "term") rather than just the shows at the O2 Arena. Michael said he was to do 10 shows in London--not total. He was pre-approved for 31--not obligated to do 31 by this "Agreement". The contract stipulates more (or even less though not so specific) shows could be done so long as certain criteria were met. Did someone lead Michel to believe the criteria could be met with 10 shows in London? It is reasonable to assume somewhere Michael may have believed he was doing 10 shows in London, by someone else's doing. I would like to know who explained this "Agreement" to him, who was present, who wrote it, who typed it up. After all, faxed and photocopied signatures were considered as valid as an original which seems odd considering all parties were in Los Angeles and could sign original documents and that leaves room for error (and/or illegalities). This "Agreement" also closes as a letter (again is this necessary or even correct for a multi-million dollar contract)? Not that it may be of any significance, but Michael's signatures look different (especially the "J" in Jackson) comparing his two signatures. This is likely nothing but worth noting, as Michael signed for The Michael Jackson Company, LLC rather than Dr. Tohme whom the letter/"Agreement" was addressed to specifically. I would love to know how this document stacks up compared to other comparable documents (ex. what did Madonna's tour agreements look like?). I have seriously signed contracts that were much longer (and more detailed) than this for much, much less important reasons. I would also love to know who told Michael what concerning this document. I would also like to know what legal representation Michael had and what their job was concerning this document. A lot of questions remain unanswered regarding Michael and his dealings with certain individuals especially in the last few months of his life. This contract just adds to those questions rather than answering them.

26 comments:

  1. I also find this rather odd. This "Agreement" is suppose to be for a certain term which seems to indicate the term was indeed for the duration of a world-wide tour encompassing metropolitan areas (hence the legS and mention of different continents in Section 3). However, the only venue specifically mentioned is the London O2 Arena. For this "Agreement", was AEG not even looking that far ahead? Apparently not. In my opinion, other venues should have been discussed in this "Agreement" as it was to be the final "Agreement". This just feeds into my previous statements about the oddity and lack of professionalism contained in this vague document that to me could have left many holes and misunderstandings for Michael.

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  2. To me, it seems like this "Agreement" was written and executed arbitrarily. As in, it outlines in very broad terms and scope what the expectations would be as far as the relationship between Michael Jackson Company, LLC and AEG Live. In other words, you're correct when you say that it seems to be very vague--it is! It was meant to set the initial boundaries and responsibilities going into the professional and working relationships among all parties involved.

    They intentionally left a lot of room for changes to be made and negotiations of all aspects of the joint venture. Stipulations were made throughout the Agreement as far as who was to be responsible for what and the proper procedures to follow in the event either party wanted to make any changes. Amendments were to be made in writing and the proper method of communication between all parties was also detailed.

    I don't see any problems with these aspects of the Agreement. It specifically states that Michael was expected to do "up to 31 shows" to the best of his ability and that any changes to that number, whether less or more, was to be agreed upon by BOTH parties. Neither party was given absolute power--both were expected to follow a certain level of professionalism and courtesy.

    In the section where you're questioning the specific concert dates and you noted at one point there would be 4 in one week, remember the Agreement states that there must not be more than 3.5 shows per week ON AVERAGE. If there happened to be 4 in one week, those would likely be averaged out across that particular leg.

    Where I think the Agreement gets dicey is something you mentioned as well—the securing of Artist/Artistco properties as collateral for recouping advances. That section seems extremely ominous to me, especially when you add in the Dr. Tohme factor! You could really get into this deeply and when you try to sort it all out, this is where the bigger picture comes into play. Especially for me. Being that the parts of this section which specifically name the properties are redacted, we can't know what they were. But I can tell you what I think they were--I think they were Neverland and Michael's stake in the Sony Catalog. If you believe that, then you start to really wonder about a lot of things that happened.

    No doubt Michael was already paid some advances—the tickets had been sold, they were on their way to London. So then AEG would need to recoup any advances paid to him and according to the Agreement, this would come out of revenue from the concerts. If they started to worry that Michael wouldn't come through and actually perform at the concerts—we know they had concerns over his not sleeping and not eating during the months of rehearsals. Let's say they really didn't think he would live up to his end of the bargain—knowing they had already paid him advances (and more than likely those advances were quite substantial), what could they do to recoup? WHAT COULD THEY DO??? WHAT DID THEY DO???

    We also know—because this came out recently in the Joe Jackson lawsuit against AEG—that they basically demanded that Dr. Murray make sure Michael slept by whatever means necessary. We know that Dr. Murray requested monitoring and life-saving equipment and also a nurse. We know AEG refused that request. So again I ask--WHAT DID THEY DO???

    (Continued below...)

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  3. (Con't)

    Mix in the Tohme factor—God knows he was a ticking time bomb since Michael had just fired him in early May. Upon his firing by Michael, I don’t think it’s that far of a stretch to believe that Tohme decided to align himself with AEG. What deal did he make with AEG in May/June? There were a LOT of shady, suspicious and greedy parties involved in all of this. We know that by accepting Tohme’s help with his Neverland problem, Michael was basically selling his soul to the devil. Tohme inserted himself into every aspect of Michael’s life, both professionally and personally to the point that Michael became terrified of this man and what he was capable of. He had to be extremely angry when Michael fired him. As you pointed out, there is no signature on the Agreement by a legal representative on Michael’s behalf. The letter/Agreement is addressed to Dr. Tohme and both signatures on the last page are Michael’s own—on both the Artist AND Artistco signature lines. Being that he helped Michael form the 3rd party company to which Neverland was transferred, he had a huge stake in the entire AEG/This Is It venture.

    When a person is backed into a corner and they begin to feel threatened with losing control of a situation the way Tohme surely felt, they begin to think of ways they can regain that control. When revenge is on the mind, going after a person’s weakness is usually the first course of action. Tohme knew Michael VERY well and knew his strongest weakness was his insomnia and his desperation to get sleep no matter what it took. Continuing with this train of thought, I imagine that he decided to put the bug in AEG’s ear that Michael may not be taking care of himself and was not sleeping the way he needed to in order to keep up his physical strength that was needed to perform up to the standards set by the Agreement.

    We know that AEG was unhappy with the amount of time Michael was putting into rehearsals. They wanted more and more from him and were unsatisfied with his explanation that he knew his body and knew how much rehearsing he needed in order to be prepared. When their efforts of trying to force Michael to do what they wanted and follow their orders seemed to fail, they turned to Dr. Murray and demanded that he do whatever was necessary to ensure that Michael got enough rest so that he could put in all the rehearsal time they wanted.

    The problem with their demands lies in the arbitrary Agreement—nowhere in the Agreement does it state how much time Michael was to spend at rehearsals. They had no legal right per the Agreement to force him to rehearse anymore than what Michael felt was necessary to deliver a “first class performance.” As I stated before, Tohme had a vested interest in these shows going off without a hitch. He and AEG knew however that they were covered by insurance and if the shows didn’t happen for whatever reason, they would recoup the money they had put into it. Or so they thought. I believe that AEG decided (with Tohme’s guidance) that they would force Murray to do what they wanted and let the chips fall where they may! Either Michael would conform to their demands and attend all the rehearsals they wanted and the shows would go off as planned or he would die trying. Either outcome for them was financially advantageous.

    I believe that all these people conspired to get what they wanted—AEG, Tohme & Murray. No one can convince me that they didn’t think ahead, knowing they had all those hours of rehearsal footage that could be converted to cash by selling the rights and knowing this—they forged ahead with their ridiculous demands on Michael. They had insurance either way.

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  4. Hi Nikki, it sure would be interesting to compare the agreement with another artist's performance contract. The scope of this one is huge though even though we don't know the "term" of the agreement.

    Interesting that details are pretty much non-existent about what was to happen following the O2 concerts.

    It appears that a loan was to be granted for a residential purchase and there is an agreement to pay back the loan (Exhibit "C"?) and security (collateral) was given over the loan (the security given is blacked out). Wondering what the security was - could it have been Michael's interest in the Sycamore Valley Ranch?

    The agreement sounds like all control would have been in the hands of the promoter. All conditions appear to offer protection to AEG but leave Michael exposed.

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  5. Nikki - Just an idea, would you say that this contract is not much more than a glorified "Notice of Intent" and not the actual or an actual contract?

    How long did Michael live at that rented home on Carolwood before he passed? He lived there less than a year. He had $5.5 Mil in Cash that he handed over to Tohme for save keeping (who by the way still had that money even though he was supposedly fired months before). Michael could have paid cash for the rent on that place.

    I'm more concered with the blacked out areas . . . why would they be blacked out?

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  6. Jaime:

    I agree. It is VERY broad and leaves much room for interpretation by all parties. To me, this being a final contract set to be in motion for what appears to be years is frankly bullshit. I don't think I mentioned it here but I have signed more lengthy and precise leasing agreements/contracts for apartments in comparison to this "Agreement". This "Agreement" does not by any means appear to be final and obviously was not final or there would not have been changes made that we visibly see now.

    Did it say he was expected to do "up to 31 shows" or just "pre-approved" for such? The way I took it, was he was okayed for that number on the date the "Agreement" was written, could do more (or even less though not as explicit) and though both parties should try their best to agree, agreement was not mandatory so long as AEG did not add more than 10 weeks, did not add more than one show in a day, did not do more than 3.5 shows in a week, on average, and did not take him out in the sticks to do the shows. Also, AEG had some legroom to work as their advance to Michael for the shows allowed them to deem necessary how many shows were necessary to recoup costs, so long as the rules I mentioned above were not broken. They certainly had the ball in their court, and if someone had mentioned 10 shows, it could have been done then swept under the rug with the certain clauses in this contract, such as "pre-approved for 31 show" and "this agreement supersedes" anything they spoke about beforehand yet it was somehow meshed into the contract. Contradiction, big time.

    Yes, I figured that one week with the 4 shows would be allowed to slide since it said "on average" yet I felt that to be sinister, not like deadly sinister but 4 shows in one week for a 50 year-old man expected to dance and sing at the same time for at least 80 minutes? Do we still expect Michael Jordan to drunk, flying from the free-throw line as he did in the peak of his career? I don't think so.

    Regarding the collateral, though I cannot prove this, a friend of mine (if she sees this and wants credit I will name her as I did not know this) says that Kimberly Guilfoyle said it was indeed the catalogs (assuming Sony/ATV and MiJac) which, when you think about it, what did Michael really own anymore to use as collateral? He no longer owned Neverland, not majority stake (then again, when was the DATE of this contract, before or after Colony Capital took over majority stake of Neverland?)--his biggest and really only asset was his catalogs though I don't know how he could use them with so much collateral already banking on them--seems like Sony had claws sunk in the ATV catalog from years prior by setting themselves up that if he defaulted, they got the share. So, if the catalogs were collateral, was some deal worked out with those companies who already in some form had loans attached to the Sony/ATV catalog or was it just Sony who still had say? Regardless, they owned half of it and should have some dictation on who could get that other half. What about Fortress? What about Colony? What about Bank of America? My God, look at this, and this is what Michael had to go through regarding his finances? Did he really technically own anything anymore?

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  7. Jaime:

    I agree. It is VERY broad and leaves much room for interpretation by all parties. To me, this being a final contract set to be in motion for what appears to be years is frankly bullshit. I don't think I mentioned it here but I have signed more lengthy and precise leasing agreements/contracts for apartments in comparison to this "Agreement". This "Agreement" does not by any means appear to be final and obviously was not final or there would not have been changes made that we visibly see now.

    Did it say he was expected to do "up to 31 shows" or just "pre-approved" for such? The way I took it, was he was okayed for that number on the date the "Agreement" was written, could do more (or even less though not as explicit) and though both parties should try their best to agree, agreement was not mandatory so long as AEG did not add more than 10 weeks, did not add more than one show in a day, did not do more than 3.5 shows in a week, on average, and did not take him out in the sticks to do the shows. Also, AEG had some legroom to work as their advance to Michael for the shows allowed them to deem necessary how many shows were necessary to recoup costs, so long as the rules I mentioned above were not broken. They certainly had the ball in their court, and if someone had mentioned 10 shows, it could have been done then swept under the rug with the certain clauses in this contract, such as "pre-approved for 31 show" and "this agreement supersedes" anything they spoke about beforehand yet it was somehow meshed into the contract. Contradiction, big time.

    Yes, I figured that one week with the 4 shows would be allowed to slide since it said "on average" yet I felt that to be sinister, not like deadly sinister but 4 shows in one week for a 50 year-old man expected to dance and sing at the same time for at least 80 minutes? Do we still expect Michael Jordan to drunk, flying from the free-throw line as he did in the peak of his career? I don't think so.

    Regarding the collateral, though I cannot prove this, a friend of mine (if she sees this and wants credit I will name her as I did not know this) says that Kimberly Guilfoyle said it was indeed the catalogs (assuming Sony/ATV and MiJac) which, when you think about it, what did Michael really own anymore to use as collateral? He no longer owned Neverland, not majority stake (then again, when was the DATE of this contract, before or after Colony Capital took over majority stake of Neverland?)--his biggest and really only asset was his catalogs though I don't know how he could use them with so much collateral already banking on them--seems like Sony had claws sunk in the ATV catalog from years prior by setting themselves up that if he defaulted, they got the share. So, if the catalogs were collateral, was some deal worked out with those companies who already in some form had loans attached to the Sony/ATV catalog or was it just Sony who still had say? Regardless, they owned half of it and should have some dictation on who could get that other half. What about Fortress? What about Colony? What about Bank of America? My God, look at this, and this is what Michael had to go through regarding his finances? Did he really technically own anything anymore?

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  8. Another problem I have with AEG regarding ticket sells, they sold those tickets so damn cheap that it made me sick. Then, chose to scalp some of the prime seats (1000-1700 seats per show) for anywhere from $300 up to, in some cases, hoping for up to $10,000 a SEAT. Seems their plan to scalp prime seating was poor--Michael was the best and prime ticket of the decade if not century but people are broke with most countries in a recession and cannot dish out thousands for concerts, not approximately 65,000 people at least (1300 seats times 50 concerts is 65,000 so it could have been even worse if it were 1700 seats). Horrible, greedy decision on AEG's part--can you imagine prime seats being EMPTY for shows? Oh no way. Can you imagine them even allowing a show with that happening? What would Michael think if his shows had empty prime seats? That would crush him and he probably wouldn't even show up!

    Then, you wonder what AEG was thinking about Michael and his lack of sleep. Did they not know better than to ask for 50 shows from a 50 year old man who had not toured in 12 years? I mean, why not start slow and then go for more after testing waters? He did not even have a new album out! IMO, the piled shit on Michael that he has no business being stressed with, ever. Poor structuring here, too.

    Regarding Murray--I would really like to know more about this tie with AEG. First, Dr. Klein said Michael called his office two weeks before his death looking for an anesthesiologist. Strike one. Michael had nurse Cherilyn Lee called on Father's Day with his hot/cold compliant--not Murray (where was Murray that day?) Strike two. Murray told his patient he may be leaving the country, not was with certainly. Strike three. There are rumors about the contract being on the bed but I won't buy that unless I see an LAPD report stating such. Could be a strike four, but I think the first three strikes are good enough to question what Michael really thought about Murray and his "care". Could Michael get rid of him or did AEG have to pull the plug on Murray?

    Tohme Ramez Tohme. Hmmm. We STILL don't know anything about him. I know Jermaine supposedly introduced them. My point is, why was Tohme handling Michael's affairs if he was not a music business veteran? Furthermore, it seems it was Tohme that pushed for Colony Capital/Barrack to move in to take over Neverland, not Barrack's idea, he was apparently convinced of such. What did Tohme have to gain? Why did he try to sell ALL of Michael's belongs and Michael have to SUE to stop it. Let's face facts, Michael did not seem to get rid of much, I mean, he held on to his catalogs when he could have sold, Neverland, too, even when he never intended to return, so why would he sell all his belongings? Who would want to do that, anyway? Not I, at least, and I doubt Michael, too.

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  9. Michael and his insomnia was something that went on for years. I have seen videos of him as a young, young man, probably early 20s, saying he could not sleep. He had to have had some sleep disorder. Anyone close to Michael would know this, especially the people he called at 3:00 a.m. (he was notorious for that). If AEG or anyone gave a damn, why did they not drag Michael to a sleep clinic to get to the bottom of his insomnia? After all, Randy Phillips said he would drag him on stage or lift him up there, something to that effect. NO! Drag him to sleep specialist and ditch the cardiologist that is "treating" (or was killing) a man with no heart disease!

    I personally, though I do not have proof, think this contract was created by Randy Phillips and Tohme Tohme. Why? Because Randy wrote the "Agreement"/letter and it was addressed to Dr. Tohme. Michael was the "third person". So, these two men should have been responsible for Michael understanding this contract. Do we think they were looking out for his best interest? I will leave all to answer that question themselves.

    Michael was put into a corner and he literally had to die or die trying, he did the latter. If he backed out he not only faced another lawsuit but now we see in writing he was to lose something, possibly his catalogs if not more or something else since these were based on collateral. What else did he have to lose besides the shirt on his back. He had three children to support and no other means to earn income than through his art.

    In the end, "This Is It" was done--via films shown around the world. They were well prepared, huh? There was still a concert, but it cost Michael his life.

    Bunnie and Bonnie, will try to get to your comments tomrorow, Jaime just broke my fingers LOL.

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  10. Morning Nikki,
    just reading thru it all.
    IMO this piece of paper(contract) reads,as follows:31 pre approved,with a minimum of 18.so when the total went up to 31 there was nothing Michael could have done.However any concert after that had to be approved,who did this??AEG had to prove that it was done to recoup costs.Now I note,that finances are spoken about after Michael's concerts but NOT before.IAW,i read nowhere about cost base analysis,budget etc so how was the recouping of costs going to be explained??Michael could have been told anything and would have been none the wiser!!Further down in the contract,it is stated that AEG may make proposals for more "legs/concerts",there was no obligation for Michael to say yes imo,but going back to what i said before,he may well have been pushed into this.after all he by his own admission had no idea what was in his accounts and nor does the contract provide for a financial explanation before Michael sets even 1 foot on the stage.
    Reading further,i note that AEG will gain a stake in any and all business of Michael,should he not keep to his end of the deal.I wonder if this is normal practise?

    All in all,this contract reads like a noose around somebody's neck!!

    sonja

    p.s michael's signatures are not the same,on the document imo

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  11. Bunnie:

    I wish I could find a tour contract from Madonna or someone of that caliber. I attended a discussion with Prince back in 2001 and though I never saw a contract from him (at that time he did not sign contracts, either) he discussed the normal sum he received after each concert. So, he made it sound like he was paid after each show. Granted, those were small venue shows and he was an independent artist who basically had all control of his concerts, how they were promoted, etc. In fact, at that time, he did not use ticket vendors like TicketMaster (TicketMonster) and such. I want to see a contract from another artist who is signed with AEG/Live Nation specifically. I just do not imagine the artist having to put down collateral to have a tour. When companies allow artists to tour for their company, there is always some risk involved. It was like AEG was baiting and switching Michael in some form (grand house and budget but we will get your goods in the end).

    Yes, it is actually bothersome to me that there is no details of any other venues, not even possible venues when this was to be a contract for a tour that was meant to be world-wide and written in its final form. Very foul, IMO.

    Residential purchase? Where did you see that? I am not sure what the collateral was, have heard it was his catalogs. I wonder if he had majority stake of Neverland when this contract was written (granted it was also already used as collateral I think). We really need a date. I wonder how this collateral worked given so much of Michael's properties, if not all of them, were collateralized already.

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  12. Bonnie:

    It looks more like a "notice of intent" but then says it is final which blew my mind. I thought it was preliminary for sure!

    He did live in Carolwood less than a year. I am suspicious about that $5.5 million that Tohme had oh so secretly hidden. What was that money, really? Hush money? Part of the advancement from AEG to Michael? Was it from AEG, actually? Was it really Michael's cash? If so, why was it given to Tohme and not in Michael's care, especially if Michael had fired him and replaced him with DiLeo? When Michael had DiLeo replace Tohme why didn't Tohme hand it back over? Why would Michael pay the rent when AEG was "taking care" of him for the shows? The $100,000 a month rent was way too much even for that place. Why was AEG paying that much anyway? They were the ones who arranged for the rental of the property, I believe.

    As for the blacked-out areas, I am not sure. I sure wish they were not blacked out and I would think surely out there somewhere is a copy of this without it being blacked out. Who is protecting who? This contract was mainly put up for the sake of showing the "healthy clause" and not much else. Did RadarOnline do this? Did their "source" deem these things be marked out in order to show the "healthy clause"? We really need answers--if so much can be made public about Michael, the least we need to know is the truth.

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  13. Sonja:

    The statement regarding the 18 shows is:
    "...in no event shall the number of Shows performed by Artist (Michael) in the first leg of the Tour be less than eighteen (18) Shows unless otherwise directed by Promoter." That last part, the "unless otherwise directed by the promoter" leaves a LOT of room for interpretation, misunderstanding, and frankly deceit, IMO. Plus, who is to say the first leg was all to be at the O2 Arena? Michael said 10 shows in London, right? His press conference emphasized that it was to be his last performances in London, not ever (though from his tone you would think they would be his last shows, the more I listen to it the more I can tell he was irritated and angry--only the fans chanting "King of Pop" and "We Love You" did it help him to break apart from what was just about as close to a tirade as you can get from Michael. That was not anger with the fans, it was anger with what seemed to be him not wanting to do these shows in the first place. He pretty much had to do the press conference and anything else that AEG deemed needed to promote the shows (to help recoup advances, no less). Then, you think about this, 10 shows were announced. Seems like AEG always planned on doing more shows because even though Michael announced 10 shows, why did a) we not hear or know about any other venues that were to follow London and b) why were no other tickets sold for other shows in other venues? Seems like it was because AEG was only going to stick with the O2 Arena, with a lot of shows, and had no plans to go anywhere else. That also helped with their booking--only one place was "filled up", not multiple venues that would have had to been dealt with when he died or cancelled, etc.

    Michael would not have even seen a pay check, and how much is marked out considering completion of the legs, "if any" money, but it would have come after the first leg was done, not first show which is highly corrupt to me. Again, I don't know the music business, I do not know if it is customary for an artist to get paid after a leg, but common sense would tell me an artist should get paid after the individual shows on a show-by-show basis and no one should have to complete 27 shows, with "first class performances" before they see their first pay check which may not even be a pay check if the recouping fees outweighed the revenue. What a crock of shit. Puppet-master, anyone?

    Michael was to get balance sheets, twice a month, breaking down the costs. However, that apparently was the job of AEG who would break down Pool Expenses and Pool Revenues--not a joint-venture with Michael's accountants and AEG. Thus AEG had full reign over the balance sheets, it seems, though after they were done with the statements The Michael Jackson Company, LLC could take a peek. I wonder how many artists are quoted 90% of the profits? Wouldn't that 90% be null and void if advancement costs and expenses were greater than revenue? Did AEG really think that revenue would be greater based on their method of selling tickets (cheap ticket prices then their seemingly failed attempt at scalping)? I would also like to know if it was or is possible for other artists to perform and not be paid based on cross-collateralization of the expenses and revenues. How often is cross-collateralization? Thus, technically if Michael blew his budget and AEG allowed him to (which was basically occurring, was it not?), he may have never seen a dime because AEG would have the right to recoup those costs first and foremost.

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  14. Sonja:

    The statement regarding the 18 shows is:
    "...in no event shall the number of Shows performed by Artist (Michael) in the first leg of the Tour be less than eighteen (18) Shows unless otherwise directed by Promoter." That last part, the "unless otherwise directed by the promoter" leaves a LOT of room for interpretation, misunderstanding, and frankly deceit, IMO. Plus, who is to say the first leg was all to be at the O2 Arena? Michael said 10 shows in London, right? His press conference emphasized that it was to be his last performances in London, not ever (though from his tone you would think they would be his last shows, the more I listen to it the more I can tell he was irritated and angry--only the fans chanting "King of Pop" and "We Love You" did it help him to break apart from what was just about as close to a tirade as you can get from Michael. That was not anger with the fans, it was anger with what seemed to be him not wanting to do these shows in the first place. He pretty much had to do the press conference and anything else that AEG deemed needed to promote the shows (to help recoup advances, no less). Then, you think about this, 10 shows were announced. Seems like AEG always planned on doing more shows because even though Michael announced 10 shows, why did a) we not hear or know about any other venues that were to follow London and b) why were no other tickets sold for other shows in other venues? Seems like it was because AEG was only going to stick with the O2 Arena, with a lot of shows, and had no plans to go anywhere else. That also helped with their booking--only one place was "filled up", not multiple venues that would have had to been dealt with when he died or cancelled, etc.

    Michael would not have even seen a pay check, and how much is marked out considering completion of the legs, "if any" money, but it would have come after the first leg was done, not first show which is highly corrupt to me. Again, I don't know the music business, I do not know if it is customary for an artist to get paid after a leg, but common sense would tell me an artist should get paid after the individual shows on a show-by-show basis and no one should have to complete 27 shows, with "first class performances" before they see their first pay check which may not even be a pay check if the recouping fees outweighed the revenue. What a crock of shit. Puppet-master, anyone?

    Michael was to get balance sheets, twice a month, breaking down the costs. However, that apparently was the job of AEG who would break down Pool Expenses and Pool Revenues--not a joint-venture with Michael's accountants and AEG. Thus AEG had full reign over the balance sheets, it seems, though after they were done with the statements The Michael Jackson Company, LLC could take a peek. I wonder how many artists are quoted 90% of the profits? Wouldn't that 90% be null and void if advancement costs and expenses were greater than revenue? Did AEG really think that revenue would be greater based on their method of selling tickets (cheap ticket prices then their seemingly failed attempt at scalping)? I would also like to know if it was or is possible for other artists to perform and not be paid based on cross-collateralization of the expenses and revenues. How often is cross-collateralization? Thus, technically if Michael blew his budget and AEG allowed him to (which was basically occurring, was it not?), he may have never seen a dime because AEG would have the right to recoup those costs first and foremost.

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  15. Nikki,as i said it was noose.
    IMO this contract stinks to high heaven.
    You asked budget,I ask which budget??No mention of it,you would think that those kind of things would be mentioned.
    If this indeed the contract,i mean one never knows of course,than imo it is very unlikely Michael would have seen a dime at the end.
    Iaw,he was had....duped

    sonja

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  16. You are right Sonja, it was a noose, plain and simple--just like you said. I just hope others can see this, too.

    I wonder if a budget was blacked out or on another paper but nonetheless I saw nothing that pointed to the inkling of a budget but rather it seemed it was done per free will of AEG. That is what I was getting at with my bait and switch comment--AEG was allowing Michael to blow his budget, with their assistance, and it seemed to be no concern of theirs with him doing so for reasons we have yet to know but can speculate upon as of course nothing has been proven. Seems like Michael's budget could have blown to the sky and it was okay--he would have just never been paid for the tour, at minimum, but what kind of business deal is that? Who would go for that? No one, eventually, once they saw it. Everyone knew Michael was vulnerable not only from his finances but from his past--he knew of the "sharks" but so many were coming in and out of his life that even he got lost in the ocean. Why didn't anyone come in and be his Saving Grace? This was by no means a Saving Grace but looks more like a "damned if you do, damned if you don't" deal.

    I think you and I both, from looking at this contract, can detect some serious fishiness about it and come to the conclusion it would have been easy to have misled Michael about his finances and shows, especially with all the other woes he already faced. Michael needed these shows (or something like them) to help him, he was desperate, actually, and in the end these damned shows cost him his life but AEG did not lose, a dime. Was it worth a man, not just a man but a son, brother, uncle and father's life to do this to him? Corruption knows no boundaries, it seems...

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  17. It is customary in the music business for the artist to be paid after each performance. It is unheard of for an artist to be required to do twenty-seven performances before seeing any money. Some are paid in cash at intermission - Bette Midler used to demand payment in gold Krugerrands when she performed overseas.

    A contract, at the simplest level, is a meeting of the minds. No way would Michael have agreed to this if he was fully aware of the implications. Who was Michael's legal counsel on this deal? Why is Tohme Tohme's name on this contract? Michael had fired him and he had no standing to represent his interests. Tohme was Randy Phillips' former brother-in-law! Previous posters have pointed out that the terms are very vague - why should Michael be responsible for expenditures that are not laid out in black and white?

    Typically artists don't collateralize their own tours. This is how Toni Braxton went bankrupt. Usually there is corporate participation. Yet there is no mention of corporate sponsorship in the document.

    This is not so much a contract for performances as a scheme to strip Michael Jackson of his assets.

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  18. Thank you very much for the info Anonymous. Great insight! Bette demanding Krugerrands reminds me of Gisele Bundchen supposedly asking to be paid in Euros. I only think it fair for an artist to be compensated in such a manner, that being on a single-performance basis. I am so glad you were able to clarify that for us.

    I was wanting to know who Michael's legal counsel was, too. Who is Dennis Hawk? I know Kathy Jorrie is an attorney for AEG.

    Oh, and great point! I noticed some mention of possible sponsorship yet no names, no mentions of possible names, and apparently no sponsors were made available during preparations, right? Sponsorship would have greatly helped AEG, whoops no, Michael with costs. AEG was covering themselves well ahead of time and footing Michael with bills in a way I do not, and almost want to say he certainly was not aware of in any form. I agree with you completely when you say he would not have agreed to this if he were fully aware of the implications. No one would.

    I was not aware of that regarding Toni Braxton. Wow, I knew of her financial woes but I assumed it from issues with royalties and such. Interesting.

    Agree with your last statement completely. What a shame. He was already down far enough, this was just the final kick, then. Makes me sick to think of this happening to anyone, but especially someone like him.

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  19. Nikki,as I understand it the contract was read to him.That imo,is certainly not the same as having every paragraph explained to you in detail,so that you know what you are letting yourself in for.
    I can't help but think about the tape that was aired from Rev Gaitlin,in which Michael spoke about Thome Thome.How Thome Thome was in total control and how Michael felt he was being kept out of the loop.At the time of this supposed contract,and I keep saying those signatures are not the same,Thome Thome was Michael's manager.Who knows what Michael may have been told by him at this time.

    Sonja

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  20. Nikki - Clause 4.2.3 Letter of Credit/Residence Purchase. Note that the letter of credit was to be irrevocable, although it has an insurance condition attached. The word irrevocable is important I believe. The letter of credit is something Michael wanted.

    Clauses 4.2.1 to 4.2.4 is all about what Michael was to receive. Clause 4.2.5 is about AEG recouping advances.

    7.1 Looks like Michael was to be provided with 10 free tickets to each show. Umm...wow.

    Also read somewhere recently that Tohme was included in AEG's insurance policy.

    16.3 Security (Collateral) - "...whether now owned or hereafter acquired or arising..." I'm just wondering if a loan was advanced (as well as the other advances we know about) for the purchase of a residence (Wonderland?) and this would become part of the security? (I think Michael really wanted that property. The price had come down since he initially viewed it in 2007 from $22.5 to $16 million [chicken feed for Michael]. He had kept in touch with the real estate agent. The agent said MJ was preparing to make a formal offer on his return from England [refer irrevocable letter of credit!])

    The security could also be Michael's interest in Neverland, particularly because of the Colony Capital/AEG connection. When MJ and Barrack became partners in Sycamore Valley Ranch the terms weren't disclosed but Michael referred to future plans, including plans for Neverland. (Michael was to be involved with Barrack in the future.)

    At first I doubted there would be security against the Sony ATV catalog as Sony was currently in control of this BUT it depends on what Michael's future plans for the catalog, or rather his loans, were. The clause in the contract says, "whether now owned or hereafter acquired or arising..." Tohme was looking at restructuring Michael's major assets "with the help of others." !! Also remembering that Barrack put up an offer for Michael's shares in the catalog after June 25.

    Could AEG have been after a stake in the Sony ATV catalog? Could Barrack have been after a stake in the Sony ATV catalog? The catalog is worth billions and counting.

    Could Michael have paid out his Sony ATV loans with revenue from 10 concerts? Or 31 concerts? Did any of those three entities really want him to succeed? This catalog is at the heart of everything.

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  21. Yes, I agree Sonja. I think I heard it was read to him, but wish we knew that for a fact. He wasn't an attorney and likely had questions--who was giving him answers?

    Good questions Bunnie.

    I looked over 4.2.3 because so much is blacked out. What is really meant by this? It was to be issued up on the issuance of cancellation insurance--so they would get their money back, is that what they were saying?

    I also read that regarding Tohme, that he was included, I believe he guessed it was just customary. Shouldn't he know that if he is functioning as someone, especially Michael Jackson's manager?

    I don't know what to think about "Wonderland". Been told it was true, it was false, I don't know.

    When did Barrack do this? We have a link?

    Here is a link to Tohme's interview:
    http://www.zimbio.com/Dr+Tohme+Tohme/articles/p7iGOAIfStU/AP+Interview+Jackson+adviser+Tohme+breaks

    Here is another link I stumbled upon:
    http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/aeg-leiweke-talks-about-tickemaster-merger-live-nation.html

    Tim Leikewe is president and CEO of AEG (I suppose Randy Phillips is president of AEG Live, the subsidiary of AEG). Someone correct me if I am wrong.

    Anyway, found some good quotes from his article.

    Why are concert ticket prices so high?

    "The only way for ticket prices to go down is if artists charge less. Building owners and promoters don’t control pricing. That’s controlled by the artists and their managers. Those are the groups that have to make the conscientious decision to give the consumer a break on tickets and pricing."

    "That said, it’s not all their fault. It’s also the fault of the promoters who bid up the price. We’re our own worst enemies. Agents aren’t going to stop us, because they want to get as much money as they can for the artist. At some point, we need to deal with the mentality of winning the bid at all costs, because, in the end, the consumer ends up paying the price."

    So, now I am confused because then I see this:

    http://www.pollstar.com/blogs/news/archive/2009/03/12/654122.aspx

    http://online.wsj.com/article/SB123698868280226077.html

    http://www.pollstar.com/blogs/news/archive/2009/03/17/654875.aspx?id=

    Michael's initial tickets sales were cheap, cheap for him anyway and cheap for almost anyone. Then, you see that some were being scalped through Viagogo. AEG arranged this, not Tohme or Michael. AEG was to get 80% profits, AEG set up the deal. So, who was arranging his ticket prices for these shows? Likely not Michael or Tohme, as he stated himself, has no music business experience. Why would AEG be running this show, then, if this is indeed the case, as it should have been the managers?

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  22. Yes, I agree Sonja. I think I heard it was read to him, but wish we knew that for a fact. He wasn't an attorney and likely had questions--who was giving him answers?

    Good questions Bunnie.

    I looked over 4.2.3 because so much is blacked out. What is really meant by this? It was to be issued up on the issuance of cancellation insurance--so they would get their money back, is that what they were saying?

    I also read that regarding Tohme, that he was included, I believe he guessed it was just customary. Shouldn't he know that if he is functioning as someone, especially Michael Jackson's manager?

    I don't know what to think about "Wonderland". Been told it was true, it was false, I don't know.

    When did Barrack do this? We have a link?

    Here is a link to Tohme's interview:
    http://www.zimbio.com/Dr+Tohme+Tohme/articles/p7iGOAIfStU/AP+Interview+Jackson+adviser+Tohme+breaks

    Here is another link I stumbled upon:
    http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/aeg-leiweke-talks-about-tickemaster-merger-live-nation.html

    Tim Leikewe is president and CEO of AEG (I suppose Randy Phillips is president of AEG Live, the subsidiary of AEG). Someone correct me if I am wrong.

    Anyway, found some good quotes from his article.

    Why are concert ticket prices so high?

    "The only way for ticket prices to go down is if artists charge less. Building owners and promoters don’t control pricing. That’s controlled by the artists and their managers. Those are the groups that have to make the conscientious decision to give the consumer a break on tickets and pricing."

    "That said, it’s not all their fault. It’s also the fault of the promoters who bid up the price. We’re our own worst enemies. Agents aren’t going to stop us, because they want to get as much money as they can for the artist. At some point, we need to deal with the mentality of winning the bid at all costs, because, in the end, the consumer ends up paying the price."

    So, now I am confused because then I see this:

    http://www.pollstar.com/blogs/news/archive/2009/03/12/654122.aspx

    http://online.wsj.com/article/SB123698868280226077.html

    http://www.pollstar.com/blogs/news/archive/2009/03/17/654875.aspx?id=

    Michael's initial tickets sales were cheap, cheap for him anyway and cheap for almost anyone. Then, you see that some were being scalped through Viagogo. AEG arranged this, not Tohme or Michael. AEG was to get 80% profits, AEG set up the deal. So, who was arranging his ticket prices for these shows? Likely not Michael or Tohme, as he stated himself, has no music business experience. Why would AEG be running this show, then, if this is indeed the case, as it should have been the managers?

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  23. In addition:

    http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/4987420/Randy-Phillips-profile-Michael-Jacksons-promoter-is-making-all-the-right-moves.html

    Key quotes:

    Actually, there are a lot of things I could quote, if not the whole article, but I will quote the "important" stuff here, not that I care seeing him say Michael was going to "dance his ass off" and he would "carry him onto the stage--he was light enough".

    "The pair go back 15 years – they lost touch, but after the promoter joined AEG he made a "hit list" of acts to entice."

    Really? So, since 1994?

    "Jackson refused twice, but several months ago, the idea arose as the superstar was putting together a restructuring plan for his finances."

    Why keep bothering him then? What finally tipped him over? I am not buying that it was because his children were old enough now. His finances must have been that bad, for when he died, he was $500 million in debt though asset-rich, in some form.

    "Jackson agreed to do 10 dates for AEG, before relenting to 40 more."

    Really? Contract says 31 pre-approved.

    "He estimates Jackson will make $50m-$100m from the London dates. This could rise to $500m if he does a world tour."

    "So how much is AEG getting out of this? Phillips laughs. "We're not in this for the money. We're taking a huge risk on Michael. Forgetting tickets, the local economy will get $500m." "

    Then why the hell do this? You can do favors for people, but not multi-million dollar favors.

    ..."not a confident person".

    Confident on stage, but not anywhere else. How often did this play into him being taken advantage of?

    ""Phil had to give me permission to spend all this money. I joke that I'm going to make him a millionaire – from a billionaire." Anschutz has been described as prickly, but Phillips says he is "respectful, a good listener and brilliant"."

    Yeah, right.

    ""We are under assault by an 800lb gorilla called Live Nation, planning to merge with Ticketmaster. It's not good, but we are there doing better.""

    This sounds like motivation to me to get Michael on board--50 shows or "This Is It" via the big screen. Let's not forget that TicketMaster and Live Nation are now one big threat to AEG Live. This was mentioned in my previous comment in one of the links, actually. I am sure AEG knew they need to do something about this merger.

    ""Now we have the biggest artist in the world at the best arena in the best city," Phillips declares, digesting the news that 750,000 tickets have sold out in five hours. He has the satisfied look of a man who has just pulled off an inconceivably ambitious plan. "

    A plan, indeed. What did he want out of it for him? The contract was all for AEG, not Michael, and we won't forget that.

    Granted, let's put a disclaimer in here. We are just thinking here--this all began with the argument of how did the 10 shows come up? No one is being accused of anything rash here, just pondering what was in it for everyone involved.

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  24. http://www.youtube.com/watch?v=R3a9Er9bT10

    This is huge.

    It correlates with what Cherilyn Lee has said about Michael appearing fine during January and February...she did not see him in March...then in April things had changed. THIS IS IT is what changed him--he was being forced into things he did not want to do. He was not in charge of what he had been in charge of since he was 5 years old--his art.

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  25. Please read, everyone:

    http://vindicatemj.wordpress.com/2011/03/29/michael-jacksons-agreement-with-aeg-a-contract-or-a-letter-of-intent/

    http://vindicatemj.wordpress.com/2011/04/02/michael-jacksons-agreement-with-aeg-everything-at-his-expense/

    http://vindicatemj.wordpress.com/2011/04/04/michael-jacksons-agreement-with-aeg-fraud-in-the-artists-compensation-too-part-3/

    http://vindicatemj.wordpress.com/2011/04/08/michael-jacksons-agreement-with-aeg-getting-everything-for-a-62-mln-promissory-note/

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  26. http://vindicatemj.wordpress.com/2011/04/14/michael-jacksons-agreement-with-aeg-we-can-relax-at-last/

    ReplyDelete