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The trials of Michael Jackson

Comments 29 November 2009

The trials of Michael Jackson

very interesting book about Sony.

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Some questions….

Comments 29 November 2009

Can you answer?

http://www.ireport.com/docs/DOC-301810

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Reputed Mobster Al Malnik Says He's Executor of Michael Jackson's Will and "Blanket"'s New Dad

Comments 29 November 2009

See video in the link below….

Al Malnik, a wealthy Miami businessman who has alleged ties with the mob, appeared on the “Today Show” this morning to discuss his “friendship” with Michael Jackson.

In an interview with TODAY’s Meredith Vieira, Malnik said he is not the biological father of his godson and Jackson’s third child, Prince Michael II, better known as Blanket.

Malnik, a lawyer and restaurateur, once had ties to mobster Meyer Lansky, and made a fortune in a short-term loan business. He also has alleged connection to notorious con man Joel Steinger. Read more about Malnik’s Mafia past here.

Malnik has reportedly said in the past that he is Blanket’s biological father and also the executor of Jackson’s estate. He now denies both statements.

“Of course I’m not the biological father,” he told Vieira. On being asked if he would get involved in the disposal of the estate, Malnik replied,

“Only if I’m asked to, and if it were court-authorized or Jackson-family authorized.”

Malnik also revealed intimate photos and exclusive videos of Jackson and his children in happy moments at Malnik’s palatial home in Ocean Ridge, Fla.

Source: http://celebglitz.com/36968/TV/al-malnik-mob-godfather-of-blanket-today-show-video.aspx

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Alvin Malnik Talks About Is Realationship With Michael Jackson

Comments 29 November 2009

Posted on September 14, 2009
As soon as the untimely and sudden death of superstar Michael Jackson hit the airwaves, the rumors began flying. From the highly suspicious to the utterly ludicrous, falsehoods spread through the media like wildfire. Michael Jackson—a superstar with unmatched talent and charisma, a national treasure under a glaring global spotlight from the time he was 10 years old—was an incredibly private person. And though millions revered the man behind the pop-king mask, few really knew him. Al Malnik, the famous and legendary lawyer, businessman, and restaurateur whom Haute Living referred to as a “Living Legend” during our cover profile in the January/February 2007 Miami edition, was one of the few people whom Michael trusted wholeheartedly. In fact, Malnik is the godfather of Michael’s youngest son, Blanket, a piece of reality that got twisted and misconstrued in the weeks following his death. The rumor mill warped the truth so much that it was claimed that Malnik was actually the biological father of Blanket—a completely fabricated falsehood. Malnik appeared on The Today Show to answer the claims, which he called a “Ripley event,” considering he didn’t meet Blanket until he was one year old. Speaking out for only the second time since Michael’s passing, Al Malnik shares his personal history with Michael Jackson with Haute Living in hopes of setting the record straight about the private life of this public figure.

I first met Michael about nine years ago. I was told that he had heard about me and was interested in meeting, and in particular wanted to request a tour of my house in Palm Beach. Michael was an architecture buff, and he had admired the property from afar. He was in L.A. at the time, and expressed interest in discussing several different business ideas and plans. He finally asked [director] Brett Ratner, whom I refer to as my 11th son, to call me and ask to meet with him. I initially said no because I was not a fan, so I really didn’t see the point in inviting him to come over and entertain him. When I told my wife Nancy about it, she raised holy hell! She said, “Are you kidding? Michael Jackson! I grew up with him! His posters were on my wall! You have to let him come over, I want to meet him.” So to please her, I invited him to the house, and from that first meeting we all developed a beautiful friendship. Throughout the past decade or so, Michael would come and stay at the house quite a bit, sometimes with the children, and sometimes alone. It was an extraordinary time. Michael was an amazing houseguest because he really didn’t require any attention. He liked to clean his own room and make his own bed, and he taught his kids to do that, too, much to our amazement. Michael soon became close friends with my son Shareef, along with Brett Ratner and Chris Tucker. The four of them spent a great deal of time together at our house, always having a ball, filled with a lot of laughs. I also have triplets that are around the same age as Michael’s two older children, Prince and Paris, who are 12 and 11 now. We would travel often with Michael and the family, going down to Acapulco or other family vacation spots. We also have fond memories of our times out at Neverland Ranch. The most important bungalow there is called the Elizabeth Taylor suite, which is where we stayed. The first night, he had Elizabeth Taylor herself call me, welcoming me to her suite at Neverland Ranch! The kids, of course, loved Neverland; they went around with Michael’s children and saw the zoo and rode the train. It was such a magical time. One year, at a birthday party that Nancy was having for the triplets, Michael came to the theater and surprised not only us, but the birthday guests as well. Everyone thought it was a Michael Jackson impersonator. They couldn’t believe it was really him! Come to think of it, some of the people may still think it was a lookalike. All of our children spent a lot of time together, and Michael’s children especially enjoyed it. When they were with us, they were able to go out with Nancy and I and our family and not be haggled. They didn’t have to wear their veils because no one knew who they were. When they spent time with us they got to experience normal situations that were lacking in their daily lives, like visiting St. Andrew’s school or going to the movies. When they were with my family, they literally were able to take off the masks and no one bothered them. Michael was able to do the same. We worked to create everyday experiences for him, like going shopping. One time we rented out a Publix supermarket so that he could do what ordinary people do on a regular basis.
Michael was able to relax when he was with us and let his guard down. We live on the beach, and he and I would go down to the water together after the sun went down where he was just an ordinary guy, kicking his feet in the surf. When it comes to my history with Blanket, Michael asked me to be Blanket’s godfather when the boy was a year old. My relationship with Blanket is limited, because he was just a baby at the time, and I did not really participate in his upbringing. But I think that in the event something happened, Michael really wanted me to be a sort of safety net. He wanted to know that I would be willing to raise Blanket as though he were one of my own children, and that’s what the legal document says. I haven’t spoken with the family since Michael’s passing. I am not used to being in the media spotlight so when the stories came out, I was shocked. I know if I go to the funeral, the press will besiege me again. So instead, our family will just pray for Michael, and wish him bon voyage from this Earth. Our family loved Mi-chael very much, and we will always be respectful, and always extend our hand of friendship to any of his children, should they ever need our help. Michael had such an amazing energy and such talent. He was always composing new songs and singing them a cappella. One day, he was walking around the house in his pajamas, singing some new pieces that he was working on. He was walking up one set of stairs, and then down another. I asked him, “What are you doing?” He said, “I’m doing two songs at once! I am walking up this set doing one song, and when I walk down the other, I do the other song.” He could write a song in five minutes, it was unbelievable. I know he did end up recording some of these new songs. He planned on making his comeback by doing an outrageous concert tour, starting in Europe and ending in the United States. At the same time, he wanted to simultaneously publish some of the new albums that he had been working on while he was staying at our house—all new, never-been-heard stuff. He was so excited to do this tour, so prepared for it. One of our friends who had seen his rehearsal one or two nights before his death, called me and said, “You ought to come out and see Michael before he does his concert. He is unbelievable. It’s like you have never seen him before.” I did have the opportunity to see him perform before, at our house. While visiting, he asked if we could get him a portable dance floor, so of course we did. When I saw him move around on that floor, I was wowed. I had never seen anything like it. I knew he was unbelievable, and it’s nice to know that five years later, he was equally impressive. It was great fun in those days, but we also shared some hard times. I helped Michael out financially in a lot of different areas when he needed it. At that time, we managed to resolve all of his financial problems. After that period, which was after I had paid for his bail when he was arrested, I felt it was not in our best family interest to spend all of the time that was required to get Michael on the right track again, because at that point he had capable people around him. And, of course, geography was a big problem because Michael’s business interests are essentially in California or out of New York or Europe. I really just didn’t have the time to continue to devote myself to trying to resolve the many considerations that were in his life. The last time I saw Michael was right before his trial, although we spoke many times after that. He was a bit meaner at that time; he was so furious and so disappointed at the charges being hurled at him. He swore to me that he was absolutely innocent of each and every charge that was made against him. And that’s the way it turned out. I think the legacy of Michael Jackson will endure for many years to come. Ultimately, the negativity surrounding him in the press will dissipate. He will be more acknowledged and respected for the musical genius that he demonstrated, and that legacy will survive our decade and the ones to come. Our children will rediscover Michael Jackson again many years from now, and be amazed that he created the music that he did, the style of dancing that he did, and more importantly, the wonderful charisma that he generated.

source: http://www.allforthegood.com/?p=93

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Michael Jackson insurers thought glowing medical examination for tour must have been on "the body of a Nasa astronaut"

Comments 29 November 2009

This is the doctor (see the wonderful pic on the link below)who declared Michael Jackson fit for his gruelling London gigs, just weeks before the singer’s fatal heart attack.

Dr David Slavit’s examination results were handed to the insurers of Jackson’s planned 50 O2 concerts.

But officials were surprised Jackson passed the medical, despite a history of health problems.

It left finance chiefs joking that the examination must have been based on, “the body of a Nasa astronaut” rather than the 50-year-old star.

They wondered why the paper made no mention of the King of Pop’s widely-known medical troubles, including a singed scalp, plastic surgery or broken leg.

And Dr Slavit’s report is now at the centre of a multi-million pound row between concert promoters AEG and insurers Robertson Taylor.

After receiving the results, the Londonbased brokers arranged for their own tests to be carried out before sealing a deal with AEG.

The firm dispatched a medic to LA to conduct the tests, but Jackson said he was unable to see him.

Bosses did sign a deal insuring an initial number of the London gigs but only subject to their own rigorous tests being carried out in the UK.

They insisted on being at Jacko’s scheduled stage rehearsal on July 10 at the O2 – and wanted to do a full examination next day.

But because Jackson died on June 25 – after the insurance deal had been signed, but before the “subject to” details were ratified – a dispute has broken out. Legal papers also showed the singer only ever wanted to perform at 10 London gigs. Sources close to the final deal suggest he was “bullied” into agreeing to 50 shows.

A spokesman for AEG said: “AEG did not hire any doctor at any time in connection with securing insurance.

“Dr David Slavit performed the medical exam which was submitted to the insurers as part of their underwriting.

“Aeg has never received a copy of Dr Slavit’s medical exam.

“A second medical examination was scheduled in the UK when the tour arrived. The policy was issued in a fictitious name.”

New York plastic surgeon Dr Slavit made out Jacko’s medical certificate in the name “M Jones”. It is standard practice for celebrities to use a pseudonym to prevent embarrassing personal health details leaking out.

The ear, nose and throat specialist has been subject to a search warrant by the Los Angeles coroner who is investigating Jackson’s death.

Dr Slavit, who lives in New Jersey with his wife Robin, 49, and three young children, refused to comment yesterday on his decision to give the star a clean bill of health. His receptionist said: “I have passed on your messages but he will not be speaking.”

Source:http://www.mirror.co.uk/news/top-stories/2009/08/05/jacko-o2-ok-medic-115875-21572108/

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Howard Weitzman interview

Comments 29 November 2009

Since YOUTUBE canceled this interview….here we are:

http://v.youku.com/v_show/id_XMTMyNjA1MjQw.html

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The fight over Michael's millions

Comments 31 October 2009

The King of Pop’s posthumous success has produced a gusher of money. Now, where his estate is concerned, the Michael Jackson show is just getting started.

By Richard Siklos, editor at large
Last Updated: October 23, 2009: 2:25 PM ET

Fortune Magazine) — On a recent Friday afternoon, workers toiled away at Neverland Ranch as part of a curious restoration effort that accelerated after Michael Jackson’s sudden death on June 25. The main grounds of the 2,700-acre property had been cleared of encroaching chaparral and were now close to the condition they had been in when Jackson last set foot here some five years ago.

The flower beds next to the Disneyland-replica train station were pristine, though the trains were in storage and the midway amusement rides and zoo animals that once populated the property were gone. The Tudor-style mansion, guesthouse, and separate movie theater/dance studio were in move-in condition. The theater even had fresh candy at its concession stand, though the building’s only inhabitant was a wayward bat stranded in the restroom.

It was a bit sad and eerie, albeit, from an MTV Cribs kind of viewpoint, quite excellent.

Through all the hoopla following Jackson’s death, no one has said publicly what will become of Neverland, which Los Angeles private equity firm Colony Capital took control of after the property nearly went into foreclosure last year.

The Jackson family’s desire to have Michael’s body interred here proved too complicated, as has the notion of turning it into a Graceland-like destination for fans. There is talk of moving some of the property’s structures, which include a giraffe barn, to Las Vegas with an eye to establishing a Neverland attraction there and selling the ranch.

Under terms of an agreement struck with Jackson after Colony purchased the note on the property for $23.5 million, when Neverland is eventually sold, Colony will recoup its investment in the note plus accrued interest, its management and upkeep expenses, and around 12% of everything above that as a success fee. The rest will go to Jackson’s estate.

While he declined to confirm the details of his arrangement with Jackson, Tom Barrack, the CEO of Colony, says the Neverland property ought to be worth $60 million to $70 million.

If so, that would be just one source of a sudden gusher of money into Jackson’s estate, the bulk of which he left to his mother and three young children.

Two years ago Jackson was headed for insolvency, a consequence of having barely worked in nearly a decade, a period during which he fought child molestation charges and became better known for his eccentricities than for his musical skills. The deal with Colony, and Jackson’s decision to stage a series of comeback concerts, were his way out from under debts that had grown from $90 million a decade ago to around $435 million today.

Though Jackson made some savvy investments early in his career, his loans piled up through an astonishing combination of careless financial decisions — made with an oft-changing and colorful parade of business advisers — a mountain of legal bills and distractions, and uncontrollable spending.

“When it came to money, he was almost a contradiction,” says Randy Phillips, who runs the company that planned to stage Jackson’s comeback. “He didn’t care about money but liked to spend money and knew that he had to make money.”

His demise might have been a tragic postscript to a faded career. Instead, the singer is having a posthumous comeback that promises to dwarf that of Elvis Presley (whose daughter Jackson was once married to). This year Jackson’s estate stands to bring in close to $200 million from music sales, merchandising, and book deals; an exhibition of memorabilia; and especially a hastily made documentary based on his comeback concert rehearsals that hits theaters Oct. 28.

The film, “This Is It,” is tracking to be a box office success — with more tickets presold than the next “Twilight” installment — and riches from DVD sales could follow. Jackson has sold some 5 million albums and 10 million downloads since his death in the U.S. alone, according to Soundscan, and plans are in the works for at least two albums of unreleased songs. (To put that in perspective, he had sold just under 300,000 records in the half-year before his death.)

In all, Jackson’s estate would likely be worth $100 million or more if it were liquidated today, but properly managed, it ought to be worth multiples more in time.

The story of Michael’s millions — reconstructed here from private documents, court files, and dozens of interviews with people who worked with the singer — is as off-the-wall as he was. Barrack recalls being charmed by the self-proclaimed King of Pop when he first met him last year but deeply skeptical about doing business with him.

“Everybody said two things about him,” Barrack says. “Firstly, if Michael Jackson came back it would be the greatest thing in music history. And secondly, it would never happen.” Improbably, both have come true.

A brief recounting of tragic and familiar facts: Jackson died suddenly in Los Angeles at age 50 amid final rehearsals for what was expected to be a 50-date gig at London’s O2 arena. The cause was a combination of prescription drugs, including a surgical anesthetic, propofol, that Jackson was reportedly being given to treat insomnia. The death is being treated as a homicide, and an investigation continues.

As demand for the London shows demonstrated — all 800,000 tickets sold out within five hours — Jackson, despite his tabloid travails, was still a megastar. From child stardom with his brothers in the group the Jackson 5, the Gary, Ind., native skyrocketed as a solo act in the 1980s. His album “Thriller” has sold more than 70 million copies, and he is the biggest-selling recording artist of all time.

Between “Thriller,” its very successful follow-up, “Bad,” and a 120-date stadium tour and sponsorship deals, Jackson earned as much as $350 million, estimates his manager during that period, Frank DiLeo. Paul McCartney, with whom Jackson recorded the single “Say Say Say,” turned him on to the idea of buying music publishing rights, reportedly saying, “This is the way to make big money.”

Jackson began buying some publishing catalogues with his earnings, including those of Sly and the Family Stone. But McCartney ended up miffed when, in 1985, Jackson — with the help of his then-lawyer, John Branca — paid $47.5 million for ATV Music Publishing, a catalogue that included more than 250 Beatles songs. (It was around this time that Jackson also bought Neverland, for $17 million in cash, after visiting McCartney, who happened to be renting it during a video shoot for “Say Say Say.”)

Separately, Jackson set up a company called MiJac to hold the publishing rights for what would eventually be eight studio albums of his own music, plus the other catalogues he owned pre-ATV.

In the 1990s, Jackson’s ambitions grew ever larger, but his meteor started to sputter. He faced accusations of child molestation and settled a civil suit for $15 million. He burned through piles of money on movies and other ventures that didn’t pan out. In 1995 he merged ATV with a publishing business owned by his recording label, Sony (SNE), in a deal that valued ATV at far more than what Jackson had paid — $115 million plus half the combined company.

Jackson wanted to transcend being a music performer by making films and theme park attractions and videogames. His short video, “Captain EO,” directed by Francis Ford Coppola, was shown in 3-D at Disney theme parks. But the only feature movie project he ever completed, called “Moonwalker,” failed to find a U.S. distributor when it was released.

By the late 1990s, according to court filings, Jackson had borrowed $90 million from NationsBank, collateralized by his half-interest in what was now called Sony/ ATV. Myung-Ho Lee, a Korean businessman who for a time was Jackson’s business manager, claimed in a lawsuit that he lined up “desperately needed financing” from Bank of America (BAC, Fortune 500) (which had merged with NationsBank) to refinance that loan and borrow more — increasing Jackson’s debts to $220 million.

Some of that new money was pumped into dotcom ventures, including Tickets.com, a gaming company, and a fuel-cell business. In court papers Lee also claimed he was not paid for his services and accused Jackson of “bizarre and extravagant” behavior. (Jackson claimed in response that it was Lee who had defrauded him.) “Michael Jackson was — and is — a ticking financial time bomb waiting to explode at any moment,” Lee said in his complaint.

The case was settled not long after Jackson’s last studio album, “Invincible,” was released, in 2001. Compared with his past chart busters, “Invincible” had lackluster sales, and Jackson was unhappy.

Bob Daly, who ran Warner Music (WMG) for years and later the Warner Bros. studio, knew Jackson through his wife, the songwriter Carol Bayer Sager, to whom Jackson had dedicated the album. One day Jackson asked Daly, as a favor, to investigate whether Sony had cheated him in the making of the album. Daly reviewed the album’s financing and found nothing untoward.

“When I told him that, he sort of disappeared on me,” recalls Daly. “Some people don’t like hearing what they don’t want to hear.” Soon after, Jackson had a blowup with Sony during which he was photographed carrying a placard portraying Sony Music’s then chief as a devil-like figure.

Before long Jackson and Sony Music parted ways — a situation that layered tension and mistrust onto his continuing partnership in Sony/ATV, which was operated as a separate entity from the music business.

At this point Jackson had a staff (or “organization,” as he liked to say) numbering some 50 people on his payroll. Upkeep at Neverland was costing upwards of $4 million a year, and Jackson was also underwriting the staff and upkeep costs of the Encino, Calif., compound where his mother and other family members lived.

Jackson sought help from a colorful roster of managers and advisers that included a guy who Jackson didn’t realize was a gay porn producer, a Florida lawyer who once represented mobster Meyer Lansky, a prominent member of the Nation of Islam, and Michael’s own brother Randy.

Finances took a back seat as Jackson spent two years fighting new child molestation charges filed against him in 2003. During his successful defense, according to court papers, Jackson received $2 million from Sheikh Abdulla, the 33-year-old son of the ruler of Bahrain, to help foot his legal bills.

The sheikh, who had ambitions to be in the music business, had taken a shine to Jackson after being introduced by Michael’s brother Jermaine. He says in court papers that he took care of the utility bills at Neverland for a time and helped Michael arrange his first mortgage on the property. The sheikh would describe his new friend as “a person who is very switched on, a fantastic businessman and fantastic intellectual.”

Several weeks before he was acquitted, Jackson attended the funeral of lawyer Johnny Cochrane. There Jackson confessed his financial straits to Ron Burkle, the Yucaipa Cos. financier, whom Jackson had befriended.

Jackson asked Burkle if he would have an accountant look at Jackson’s troubled finances. Burkle agreed, eventually telling the singer that his spending was untenable and he either needed to cut back dramatically or go back to work.

But Jackson told him, as he did others, that under no circumstances did he want to go back to performing. At the very least, Burkle insisted that Jackson begin signing all his own checks so that he could see how much he was paying for things.

Most of Neverland’s staff was laid off, and Jackson — who said he felt violated after police raided his home — vowed never to return there. Soon after his acquittal, Jackson was living in Bahrain with his children as a guest of the sheikh.

Amid all the negative publicity swirling around Jackson, Bank of America quietly sold the loans it held on Jackson’s interest in Sony/ATV, MiJac, and Neverland at a steep discount to Fortress Investments (FIG), a big hedge fund that specialized in distressed assets.

Because of covenant breaches and penalties, the loans now carried stiff terms, with an interest rate in the mid-teens, say two people who were involved in Jackson’s finances.

Jackson’s income consisted of small dividends from Sony/ATV, $10 million or so from MiJac, plus roughly $10 million from music royalties and other sources — but that was not enough to stay ahead of his mounting interest payments and his legal and living expenses.

“He always was asset rich and cash-flow poor,” one of these people says. “The best way to think about it is a middle-income family that spends too much on their credit card and doesn’t care about the fees.”

In late 2005, Jackson received a fax from Robert Wiesenthal, the chief financial officer of Sony’s U.S. business. Wiesenthal understood that Jackson was days from defaulting on his Fortress publishing loan and offered to meet to discuss ways to help.

Besides aiding a partner, Sony was concerned that Jackson’s half of Sony/ATV could end up in bankruptcy court — or in the hands of an outsider like Burkle or Fortress. (Burkle declined to be interviewed, and Fortress did not respond to an interview request.)

Howard Stringer, Sony Corp.’s chairman, dispatched Wiesenthal to Dubai. In a gilded hotel suite, Wiesenthal met with Jackson and several of the sheikh’s advisers and explained that Sony had lined up bankers from Citi who were willing to refinance Jackson’s ATV debt on much better terms. And Sony agreed to a dividend policy from the publishing company that would help cover interest payments on the ATV loan.

In exchange, Sony received a freer hand to make investment decisions without Jackson’s approval; a right of refusal on his stake; and an option to buy half of Jackson’s half for around $250 million. To everyone else’s surprise, Fortress exercised a right it held to match any financing terms and held onto its Jackson loans, though only for a short term.

Problems solved? Of course not. In Bahrain, Abdulla had given Jackson use of a Rolls-Royce and a Maybach and bought him jewelry and watches and a gold statue. But after a few months their relationship became another tale of mutual hurt.

Jackson left Bahrain, and Abdulla sued him for reneging on an agreement to start a label and record songs together — including a Hurricane Katrina relief song they’d spent weeks preparing. Jackson claimed that he either did not know what he was signing or was misled. The case went to trial in London but was settled just before Jackson was to testify.

Jackson moved mostly around Europe with his children, at one point in 2006 living in Ireland and contemplating settling there. According to Raymone Bain, Jackson’s spokeswoman and general manager at the time, although Jackson was focusing on raising his children, he was also determined to revive his career.

Jackson told Bain, a crisis specialist who had been spokeswoman for incarcerated D.C. mayor Marion Barry, that two constant subjects of media inquiry were off-limits: his children and his finances. “My finances are my business,” he said. “Let them think I’m broke.”

Jackson invited Bob Sillerman, the Wall Street entrepreneur who had acquired Elvis Presley Enterprises, to visit him in Ireland to talk about ways to turn Neverland into a fan destination. And although he had been hands-off at Sony/ATV, he was excited about acquisitions the company was making, even calling the legendary songwriter Mike Stoller before the company acquired the catalogue owned by him and Jerry Lieber, which, to Jackson’s delight, included the Elvis hits “Hound Dog” and “Jailhouse Rock.” “He wanted to really assure Jerry and me that we would be in the best of hands,” recalls Stoller.

The Fortress loans were coming due yet again at the end of December 2007. Barclays refinanced the $300 million loan against Sony/ATV from Fortress. HSBC (HBC) lent $30 million against MiJac. Plainfield Asset Management, a hedge fund, loaned another $40 million against MiJac at a 16% interest rate on terms that allowed Jackson to defer payments while the amount due grew.

The financing was supposed to enable Jackson to settle 13 outstanding lawsuits and still have roughly $11 million on hand for creative ventures. The other loans against Sony/ATV and MiJac were both structured so that Jackson was unable to access any of the money — dividends and profits went directly toward debt payments. And additional money was raised to have “interest reserves” that would make interest payments when Jackson couldn’t. Frank DiLeo, Jackson’s manager during his heyday, still can’t believe the star let it all pile up. “I want to wake him up and slap him,” he says.

Jackson was still, according to two people who advised him, running a deficit of $10 million to $15 million a year beyond a similar amount that he would bring in from royalties and new ventures like a special 25th anniversary “Thriller” album released last year.

Not counting financing charges, last year Jackson’s personal expenses were around $8 million, says an adviser who reviewed his books — counting everything from rent and Neverland upkeep to security, child care, and tutoring Jackson was receiving for moviemaking.

Fortress had held onto the mortgage on Neverland, and in early 2008 — to the surprise of Bain and some of Jackson’s other former advisers — reports emerged that Neverland was going to be sold in a foreclosure auction, only to be “saved” for Jackson by Colony Capital.

By then Bain was out of the picture after Jackson had changed his phone numbers, which he did frequently. This time he didn’t give her the new ones. Several months before he died, Bain filed a $44 million lawsuit against Jackson for, you guessed it, unpaid services.

“This is the saddest story in history,” says Tohme Tohme, the man who succeeded Bain. “I had no purpose except to help him, to bring Michael Jackson back and make him the King of Pop. One consolation for me: I did it. He died the King.”

In the days following Jackson’s death, Tohme was portrayed in media reports as a mysterious if not sinister figure — a portrait he feels besmirched him. A longtime Los Angeleno of Lebanese heritage and habitué of the Bel Air Hotel, Tohme comes from outside the entertainment business but declines to say what businesses he is in.

“If you are writing about Linda Lovelace, you don’t need to know about John Holmes,” he laughs, making an unexpected reference to 1970s porn stars.

Say what you will, Tohme was able to get Jackson working again. Tohme says that he has known the Jackson family for years, and that Jermaine asked Tohme to help his brother out in early 2008 when Neverland faced foreclosure.

Tohme had done some work with Colony Capital, which has done $39 billion worth of transactions since 1991 and owns 9% of French retailer Carrefour. Tohme persuaded Colony’s Barrack to meet with Michael in Las Vegas at the rented stucco compound where the King of Pop and his kids were living. Colony owns the Vegas Hilton, and Barrack had played a role in resuscitating the career of Barry Manilow via a five-year run of shows there.

Barrack also has a ranch near Neverland, and he expressed interest in both Neverland and some kind of permanent Vegas show based on Jackson’s music. He in turn spoke to Phil Anschutz, the owner of AEG (it stands for Anschutz Entertainment Group), which led to a meeting between Anschutz and Jackson at the MGM Grand late last year. Jackson was “very laser focused,” says AEG Live’s Phillips, who also attended. “He wanted to meet the guy who owned the company.”

AEG and Tohme subsequently hashed out Jackson’s deal for what eventually became 50 shows. Among its terms: Jackson would get 90% of all profits, and AEG would advance some $15 million toward the purchase of a palatial house that had been built by Prince Jefri of Brunei in Las Vegas, which had been listed for more than $100 million and which Jackson envisioned as his new Neverland.

But first AEG had to pay $5 million to Sheikh Abdulla to finally settle his dispute with Jackson (a figure that hasn’t previously been disclosed). Tohme worked on other deals on Jackson’s behalf, including one for a “Thriller”-based show on Broadway, TV specials, a film, and even a casino.

But several weeks before his death, there was fresh unrest in Jackson’s world. Tohme was on the outs after Jackson was upset by the way he managed an auction of truckloads of his eclectic personal possessions this past April.

Jackson was apparently horrified to see the catalogue on the Internet, and the auction ended up being stopped after Jackson sued. (Tohme denies ever receiving a letter from Jackson dismissing him and says he hasn’t been paid for the work he did for the singer.)

Around that time, Jackson brought back his old manager DiLeo, who in turn helped bring back John Branca, who had been Jackson’s lawyer for the better part of three decades and helped him buy ATV, but with whom the singer had a sometimes strained relationship. Branca, who declined to be interviewed, has said that he last stopped working for Jackson in 2006 because he didn’t like the people Jackson was surrounding himself with.

Some in the Jackson orbit, including his father, Joe (with whom Michael had long-standing and very public differences), have contended that Michael was manipulated by people without his son’s best interests in mind and hint at nefarious forces behind his demise.

Both the rented $100,000-a-month Bel Air mansion where Jackson fell ill and a doctor who lived with him — who was to be paid $150,000 a month — were being funded by AEG. Phillips, the president of AEG Live, says he objected to having the doctor, but Michael Jackson insisted, saying that his body was their venture’s most important asset.

“It’s easy to make us look like the corporate villains who took advantage of Michael Jackson,” Phillips told me one day in his office near Los Angeles’ Staples Center, which AEG owns and where Jackson held those final rehearsals. “It’s quite the opposite — we were the people who empowered Michael Jackson and gave him his dream back.”

AEG, despite having invested close to $30 million in Jackson’s unrealized dream, will make money on its involvement with the estate, thanks largely to the rehearsal footage that was shot and the swiftness with which AEG and Jackson’s executors formulated a plan to salvage a calamitous situation.

Sony paid what one company insider called an unprecedented $60 million to Jackson and AEG for the rights to release “This Is It” — a price justified in part by the fact that the film deal precluded, for now, a televised tribute concert recreating Jackson’s fateful stage show, which AEG has explored.

The movie is slated for a limited, two-week run. But where his estate is concerned, the Michael Jackson show is only just underway.

New creditor claims are being filed on a weekly basis, and yet to be resolved is whether Jackson’s family can get along with the executors who were named in Jackson’s 2002 will: Branca and music industry veteran John McClain.

Katherine Jackson’s attorneys have accused the executors of conflicts of interest (their precise objections are sealed from public view) while criticizing aspects of the deals they struck with Sony and AEG.

The probate judge, Mitchell Beckloff, recently took the unusual step of granting Katherine the ability to challenge the executors without jeopardizing her inheritance, and both sides’ lawyers have been trying to work out a compromise that would avoid a trial.

Estate lawyers know that high-profile celebrity cases can drag on for years, the most extreme example being Marilyn Monroe’s probate, which lasted more than three decades.

Jackson’s cultural resurgence will certainly continue to brighten the estate’s financial situation, but more challenges are on the horizon. Next year, insiders say, the estate’s groaning debts will need to be refinanced yet again.

Down the road, MiJac may be merged into Sony/ATV, which has thrived over the past couple of years. Or the estate may eventually decide that it wants to sell Jackson’s musical jewels to the highest bidder to finally settle all the singer’s debts and lawsuits. One day, in Las Vegas or elsewhere, fans may visit a new Neverland.

Creatively, Jackson’s legacy in the pantheon of musical superstars is already secure. But when it comes to the big financial questions, it’s a good bet that Jackson’s executors will not be asking themselves, “What would Michael do?”

Reporter associates Marilyn Adamo and Kim Thai

First Published: October 23, 2009: 4:26 AM ET

source: http://money.cnn.com/2009/10/23/news/companies/michael_jackson_money_assets.fortune/index.htm

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Michael Jackson’s Estate: Concert Promoter AEG Live Attempts to Muzzle Katherine Jackson

Comments 24 October 2009

Posted by LBG1 on July 30th, 2009
The LA Times is reporting that there’s a “battle brewing” between Michael Jackson’s mother Katherine and the temporary administrators of Jackson’s estate. The Times also mentioned concert promoter AEG. While the press is focusing on the temporary administrators of the trust named in Jackson’s will and Katherine, we see a different slant to this story, of AEG seeking to keep the details of its involvement in Michael Jackson’s final months as well as his death, under wraps. Details which, we believe, if revealed, will result in a massive wrongful death lawsuit against AEG Live and Colony Capital, co-promoter of the 50 concerts slated in London. We also believe that yet another person will be involved, the “mysterious” Dr. Tohme Tohme, who recently “returned” $5.5 million in “secret cash” and items from Neverland which belonged to Jackson and which were originally slated to be auctioned off prior to Jackson’s death to the Jackson estate.

According to ABC, Dr. Tohme, Jackson’s “unpaid adviser”, recently turned over to the Jackson estate $5.5 million in ” secret cash” and a “substantial amount of tangible personal property”. Property which were Jackson’s personal Neverland items that were once slated to be auctioned.

On July 5th, we wrote about Dr. Tohme in Michael Jackson’s Death: Neverland, The Mysterious Dr. Tohme, President of Michael Jackson Productions?

Before returning the “secret cash” Tohme had billed himself as Jackson’s “unpaid adviser” and “spokesperson”. It was Tohme who claimed he had “set up” a meeting between Tom Barrack, Chairman of Colony Capital, and Jackson. It was purportedly this meeting that led to Barrack buying the note on Neverland which was close to being auctioned off. The meeting also led to Barrack contacting Philip Anschutz, a “reclusive” Kansan billionaire who owned AEG. It was AEG who lined up and promoted Jackson’s upcoming concert series in London at AEG’s O2 Arena with Colony Capital as co-promoter.

Tohme claims the $5.5 million in cash was a “secret” he kept with Michael. Tohme claimed he “handed” the money over to the Jackson estate. Tohme claimed the money came from Jackson’s residuals and was going to be used to purchase an estate that Jackson coveted in Las Vegas which Tohme claimed he was already in the process of negotiating a deal.

As for Tohme turning over Jackson’s personal items from Neverland, we found a court document from a lawsuit filed in Los Angeles Superior Court on March 23, 2009, involving Tohme and the auctioning off of those items and where Tohme listed himself as “President of MJJ Productions”.

MJJ Productions Inc. is Jackson’s bonafide company founded in 2000 whose offices are listed as located at 9255 Sunset Blvd., Los Angeles.

On July 4, during an AP interview, Tohme never mentioned his role as president of MJJ Productions. Instead, Tohme was referred as Jackson’s “last business manager and spokesperson”. He referred to himself as Jackson’s “closest friend” for the “last year and half”.

In court documents, Tohme listed himself as “President of MJJ (Michael Jackson) Productions. Tohme claimed in the document that “in the middle of 2008 a deal had been made with Colony Capital LLC to refinance some of the existing debt obligations on the Neverland Valley Ranch” and that “as part of the deal with Colony, MJJ had to remove all of Michael Jackson’s personal property out of Neverland” in “90 days”.

Tohme stated that it was he who contacted Julien’s Auction, LLC.. Tohme specified that Julien’s could not sell any of Jackson’s items unless they were pre-approved by Tohme and Jackson.

Tohme stated that he signed the agreement with the auction house “sometime, on or about August 8, 2008″. Even though Tohme stated that he had “read” the agreement, he claimed that he “relied” on “Mr. Julien’s representations” that Julien would remove from Neverland “all” of Jackson’s property before any “determination” would be made of which items would be sold at auction. In short, according to Tohme, Julien’s was responsible for the cost of packing up Jackson’s entire property, putting it into storage, then allowing Jackson and Tohme to decide “which” of the items would be sold for auction.

Tohme goes on to state that “he wouldn’t have allowed” Julien’s to remove “any of the property that he (Julien) intended to sell ‘everything’ without first allowing Michael Jackson and I to consent to the sale of each item”.

Tohme stated that he “wasn’t authorized by Michael Jackson to give Julien’s Auction House, LLC or any other company or person the right to sell any of Michael Jackson’s personal property“.

On April 13, 2009, the New York Times wrote about the upcoming auction as well as stating “Tohme R. Tohme, the president of MJJ Productions, Mr. Jackson’s company, and a spokesman for the singer, signed a contract consigning to Julien’s “all movable and removable personal property located at Neverland Ranch.”

On April 14, the Los Angeles Times reported that during a suit filed “last month” in Los Angeles Superior Court-the suit claimed certain items “irreplaceable” and that Jackson “hadn’t signed the contract”-the judge had dismissed “the attempt to have the contract ruled invalid” and that Jackson’s company now sought a temporary injunction. The Times also reported to what extent Julien’s was instructed to remove Jackson’s “property”, such as “the hoods over the stoves” and the “light fixtures” and that Julien’s spent over three months removing Jackson’s “property”.

April 15, 2009

From News-briefs:

“Jackson’s spokesman Dr. Tohme R. Tohme and auction organizer Darren Julien issued the following joint statement: “There was so much interest from so many of Jackson’s fans that instead of putting the items in the hands of private collectors, Dr. Tohme and Julien’s Auction House have made arrangements that will allow the collection to be shared with and enjoyed by Jackson’s fans for many years to come.””

The auction was “called off” with Jackson’s personal items being returned to Jackson. We found this quote from Julien dated June 26, the about the fate of Jackson’s personal items and whether the items would be auctioned off now that Jackson was dead:

“We returned everything to Michael immediately after the exhibit in April. It is still in storage. Under the right circumstances, I would agree to undertake the auction again.”

Last week the Jackson estate reported that it had received from Tohme $5 million in “secret cash” and that Tohme had “turned over items from the pop star’s Neverland estate that were once scheduled to be auctioned”.

Neverland, AEG, and Dr. Tohme

In our previous story we reported that Dr. Tohme stated that he had “previously worked” for Colony Capital. Tohme, as an “unpaid” adviser, had “escorted” Jackson to the meeting where Jackson agreed to 10 concerts promoted by both AEG and Colony Capital. Tohme also stated that he was “working with” AEG and Colony Capital.

Tohme, Colony Capital’s Tom Barrack, and AEG’s Philip Anschutz

Tohme claimed he set up the original meeting between Barrack, Tohme, and Jackson. One result of the meeting: Barrack wound up saving Neverland from the auction but also gained ownership, with Jackson given some sort of profit sharing agreement. It was Barrack who contacted the owner of AEG, Phillips Anschutz.

On June 2, Business Mirror.com reported that Barrack’s own fortune, which Forbes estimated in 2008 at 2.3 billion when Barrack met Jackson, had dwindled to the “multi-millions”. Barrack and Anschutz believed worldwide ticket sales to Jackson’s “greatest” comeback tour could exceed $450 million. The money that Barrack invested in Jackson was backed by his investment in Neverland. Phillips Anschutz’s AEG’s investment in Jackson: $20 million.

More from the Business Mirror and Dr. Tohme:

“In an interview last week Dr. Tohme Tohme, an orthopedic surgeon-turned-businessman who had previously worked with Colony Capital, identified himself as the singer’s “manager, spokesman, everything” and spoke about the benefits of dealing with business titans Barrack and Anschutz rather than their “sleazy” predecessors. “Michael Jackson is an institution. He needs to be run like an institution,” Tohme said.

The next day, however, Frank DiLeo, Jackson’s current manager and a friend of three decades, claimed he was Jackson’s manager and said Tohme had been fired a month and a half earlier. Tohme denied being fired but declined further comment.”

It’s been reported that there’s a “fortune at stake” for concert promoters AEG and the ill-fated fifty Michael Jackson concerts slated in London at AEG’s 02 Arena. According to Billboard, “more than 85 million tickets had already been sold” with AEG shelling out more than “$30 million” for pre-production and promotion costs and an estimated $10 million paid in advance to Jackson. AEG would also be responsible for the cost of refunding ticket holders to Jackson’s concerts.

Billboard reported that on May 12, AEG Live CEO Randy Phillips claimed his company was “well-insured” in case Jackson were unable to perform:

“AEG Live CEO Randy Phillips told Billboard.biz May 12 that his company was well-insured. “We have one policy in place and we’re negotiating for an even larger binder,” said Phillips, who couldn’t immediately be reached for comment regarding Jackson’s death. “We have insured the production costs. In order to get the first part of the insurance in place, [Jackson] had to have a physical, and he passed it with flying colors.” AEG CEO Tim Leiweke made similar comments in March at the Billboard Music & Money Symposium.”

Billboard reported that a “source” claimed there wasn’t an insurance policy in place and that even if Jackson had passed a physical, any “pre-existing condition or drug or alcohol related, a normal cancellation policy” wouldn’t have covered AEG’s losses.

On July 23, Insider.com reported that AEG Live had filed papers in order to petition the probate court handling Michael Jackson’s estate. According to the AEG spokesperson, AEG filed a request for “special notice, meaning we can receive copies of papers filed as part of the proceedings”. AEG went on to state that they were an “interested party” and that they have a right to be aware of the information”.

On July 29, the Chicago Tribune reported Sony Pictures had paid $60 million to concert promoter AEG Live for the “rights to 80 hours of Michael Jackson rehearsal footage recorded in preparation for his ill-fated “This Is It” tour”. Even so, purportedly 90% of the $60 million will go to the Jackson estate.

On June 26, the LA Times reported that a Jackson “adviser”, Tohme, had stated that while Jackson had picked Dr. Conrad Murray as his physician, AEG “paid the doctor’s bills”.

On July 22, according to Insider.com, AEG Live stated that “Michael Jackson insisted” AEG hire Dr. Murray and that Murray was “Jackson’s personal physician”. According to BittenandBound.com, Murry had been Jackson’s physician for three years and that Murray had been hired by AEG to be with Jackson “full-time”.

During his AP interview, Tohme stated that he had “built a fence to keep people out” in regards to Jackson’s privacy. Tohme also stated that he had “fired” some of Jackson’s security guards. Tohme stated that he had seen Jackson “two days” prior to Jackson’s death and that Jackson was in “good health” and that, “as far as” Tohme knew, Jackson “never took drugs”. There’s been unsubstantiated rumors that, immediately after Jackson was pronounced dead at the hospital, Tohme allegedly “fired” the security guards at Jackson’s home.

During an interview Jackson’s personal chef, Kai Chase, claimed that on the day Jackson died, she was informed by Jackson’s security guards at 1:30 pm that she would have to leave the house because Jackson was being taken to the hospital. She also stated that it was “about 12:05 or 12:10 pm” when Murray ran down the stairs and “screamed” for Jackson’s oldest son Prince. She also stated that she later saw paramedics “run up the stairs”.

According to the Daily Mail, Prince was taken by Murray to Jackson’s room where the boy watched Murray apply CPR to Jackson for “over 50 minutes” until a security guard called 911. Murray’s alleged behavior involving Jackson’s son could mean a separate potential lawsuit against Murray and his employer, AEG, of Prince being unwittingly exposed to undo trauma, pain, and suffering. It also calls into question Murray’s motive in retrieving a young child from downstairs to where Murray allegedly tried to resuscitate Jackson for “over 50 minutes”.

According to Hollywood Grind, Murray’s attorney Edward Chernoff, AEG Live owes Murray $300,000, two months pay. AEG Live CEO Randy Phillips responded by trying to distance his company from Murray. While Phillips acknowledged that the company had a contract with Murray, Phillips claimed that Jackson “had failed to sign it” and that Murray would have to sue the Jackson estate.

In his will Michael Jackson turned everything over to the administrators of his trust, The Michael Jackson Family Trust. By law, the details of the trust can be kept a secret.

On July 22, People magazine had this tidbit about Jackson’s estate and his mother Katherine. According to People, Katherine filed a request to Jackson’s the attorneys handling Jackson’s estate to “speed up” their efforts. Katherine alleged that, so far, the attorneys “apparently intent on keeping her in the dark as much and for as long as possible.”

What’s interesting to note is just who responded to Katherine’s request: the attorneys handling the Jackson estate, John Branca and John McClain, and AEG:

“Attorneys for Jackson’s estate and AEG, which was to promote Jackson’s big comeback concert this summer in London, countered that her request is “voluminous, burdensome and invasive.” They also expressed concern that Katherine would not uphold a confidentiality agreement for Jackson’s concert deal.”

More details have emerged regarding AEG’s attempts to muzzle Katherine:

From the LA Times:

“In their filing, Katherine Jackson’s attorneys said McClain and Branca refused to provide documents they had requested or placed “cumbersome and unreasonable restrictions” on access to them.

A lawyer for McClain and Branca denied those allegations.

“Nothing could be further from the truth,” wrote lawyer Jeryll S. Cohen. She said the “cornerstone” of Katherine Jackson’s complaint was her inability to view a contract between the concert promoter AEG Live and her son. The contract covered a series of 50 concerts in London as well as unspecified film projects between the L.A.-based promoter and Jackson.

In a separate filing, a lawyer for AEG said Katherine Jackson’s legal team had refused to sign a confidentiality agreement that, among other things, barred them from using the information contained in the contract in any legal process other than the probate court proceedings.”

The Jackson estate administrators admitted that Katherine sought the details of the contract between her son and AEG. A contract which would include the details of whether the company had insured Jackson as well the amount paid to AEG if Jackson had failed to perform. The contract would also provide details about the personal physician hired by AEG. In this case, AEG has admitted it was Dr. Murray.

AEG stands to lose a considerable sum over the series of concerts Jackson failed to perform. There’s been no news that AEG has sought to recoup its losses by way of filing an insurance claim, a claim, that if AEG was telling the truth, that Jackson had passed a medical exam with “flying colors”, should be legit.

If it’s ascertained that Jackson’s death was caused by Dr. Murray’s actions, AEG, as Murray’s employer, could face a potentially massive wrongful death lawsuit from Katherine Jackson. AEG attempted to get Katherine Jackson’s attorneys to sign a confidentiality clause that would bar them using the information contained in the contract in “any legal process” other than probate court. Any “other” legal process could include a wrongful death suit filed by Katherine’s attorneys. If successful, AEG would muzzle Katherine Jackson’s attorneys as well as Katherine Jackson from revealing AEG’s role in Michael Jackson’s death.

By LBG

Source: http://deathby1000papercuts.com/2009/07/michael-jacksons-estate-concert-promoter-aeg-live-attempts-to-muzzle-katherine-jackson/

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"It's Going to Be a Disaster": Associate Says Jackson Was Too Weak for Major Comeback

Comments 21 October 2009

Fri., Jul. 10, 2009 8:16 PM
One of the dreamers who tried to reboot Michael Jackson’s career says the late King of Pop wasn’t fit enough to hit the stage for the “greatest comeback show ever” two years ago, let alone this summer.

“It would have happened had I assessed that Michael was capable mentally, emotionally, vocally to do it. At the end of it, we decided no, he wasn’t,” Jack Wishna, president of consultancy CPAmerica and the orchestrator of Jackson’s return to the U.S. after a year spent living abroad, exclusively tells E! News.

The idea that they danced around from mid-2006 to mid-2007, and again earlier this year, was to have Jackson in residence at a Las Vegas hotel, where he’d star in a concert spectacular called Michael Jackson Presents that would also feature guest appearances by the latest R&B hitmakers.

“Michael says, ‘I have this huge statue of me in full regalia, moon boots,’” Wishna recalled. “I want the hotel to encase it in the wall and the nights I’m in performance the statue comes out to the center of the strip so the world knows that I’m here,” Jackson said, according to Wishna. “It would come out on a conveyor belt.”

But though concert promoter AEG Live said that Jackson passed a physical with flying colors earlier this year, Wishna maintains that the 50-year-old artist had been in a “weakened state” and wasn’t able to do three shows a month in 2007, much less maintain a more rigorous schedule now.

“He would get hurt if he had to do a regimen of performances,” Wishna said. “You really have to be fit to go up on stage to do that.”

So, earlier this year, he and Jackson instead discussed creating a show in the guise of LOVE, Cirque du Soleil’s ode to the Beatles, that the King of Pop would not actually be in.

But then, Wishna said, he found out Jackson had hooked up with AEG for his London engagement.

“He said it should be fine,” Wishna recalled. “In my heart I knew he didn’t get better from the time I was with him. He was thin and weak. It’s going to be a disaster. I would never put him into a show that way. I don’t know who the doctor is that certified him for it. I didn’t think [Jackson] was capable of doing it.”

Wishna said he never saw Jackson using drugs, but that he wouldn’t have had any trouble obtaining whatever he wanted—oftentimes from people who didn’t have his best interests at heart.

“There were so many people around him that were enablers,” the exec said. “It was one thing after another that just made it very bizarre.”

“Michael has a lot of people around him that cut deals and sometimes Michael doesn’t even know what those deals are,” he added. “So many people have been around him. At every turn it’s like he’s his worst enemy because of the people that are around him.”

“If you opened your mouth he’d alienate them and get rid of them,” Wishna said of the members of Jackson’s entourage who failed to acquiesce to his demands. “Nobody told him ‘don’t do this, don’t do that.’”

Sadly, Jackson isn’t around to tell anyone to do anything on his behalf anymore. But Wishna feels that he knows what the Thriller purveyor would say about one thing.

“In Ireland, when I spoke to Michael, I said, ‘Come back and go back to Neverland.’” And Jackson said, “I never, never, never want to go back to Neverland. Never.”

“My thought is if someone buries him in Neverland he will come up out of the ground like in Thriller and strangle them,” Wishna said, referring to rumors that Jackson’s family is still considering a bid to inter Jackson on the grounds of his once-beloved ranch.

“I tried to get rid of Neverland for him. He would never set foot back on Neverland. He never wanted to go there, never wanted to sleep there— never, never.”

Source: http://www.eonline.com/uberblog/b133691_its_going_be_disaster_associate_says.html#

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Showbiz coup of the decade

Comments 19 October 2009

A Las Vegas meeting between Michael Jackson, his mysterious aide and four powerful businessmen results in a thrilling deal

Evening Standard Published: 23:05 March 15, 2009

Even by Las Vegas standards, the stakes at the meeting in the MGM Grand were extraordinarily high, the bet incredibly risky.

While tourists gambled dollars and cents in the slot machines next door, four of the most powerful men in show business were risking hundreds of millions, as well as their reputations, on a man whose own reputation was in tatters.

But as Michael Jackson sat before them, his youngest son, Blanket, at his side, the executives from AEG, the world’s second largest entertainment company, knew they had got their man.

Jackson, in a sober black suit (he has been photographed in women’s clothes on one shopping trip and pyjamas on another) appeared fit and well.

After years dogged by child abuse scandals, near bankruptcy and an obsession with plastic surgery, he told them what they were desperate to hear: the “King of Pop” was ready to make his comeback.

Just two months after that meeting, Jackson, who has not performed live for 12 years, is at the age of 50 breaking all records. His 50 concerts at the AEG-owned O2 Arena sold out within hours of the box office opening on Friday.

Jackson-mania is gripping London and the world, transforming the figure of fun, never to be let near children, to the biggest draw on the planet once again.

He has in effect been detoxified by an American corporation that stands to make a fortune. Jackson too will earn as much as £100 million (Dh512.6 million).

The Las Vegas meeting was crucial. Jackson had with him his mysterious aide Dr Tohme Tohme, a former Saudi Arabian orthopaedic surgeon who is his closest confidant.

His youngest son, officially Prince Michael II but referred to as Blanket in the family circle, played in the room. The last association Blanket, now six, had with a hotel was when his father dangled him from a balcony as a baby in Berlin in 2003.

The AEG delegation was headed by Philip Anschutz, its billionaire founder, and included his most senior executives: AEG’s chief executive Tim Leiweke, Randy Phillips, who heads up AEG Live, the live entertainment arm of the company, and Paul Gongaware, who managed Jackson’s live shows in the ’90s and will do so again in London.

Gongaware, who also staged Prince’s 21 nights at the O2 in 2007, is widely recognised as the middleman. While Jackson sipped bottled water, the AEG men, in polo shirts and jeans, sized up their target.

Jackson, with debts of up to $100 million (Dh367 million), desperately needed the cash while AEG was eager to land the showbiz coup of the decade.

Anschutz, a devout Christian, was weighing up whether hiring Jackson would damage his company’s reputation. The presence of Blanket helped to convince Anschutz that Jackson was ready for a return into the spotlight.

“It was a feelgood meeting,” Phillips said. “We went into why I felt London was the right place to visit. He agreed. Phil [Anschutz] is very good with people and he was like a father figure to Michael. He likes to invest in family entertainment and saw that Michael was such a great father.

“Michael talked about his ambition to write, produce, direct and star in films and Phil, who owns the largest cinema chain, said he would be able to help.”

For Phillips, the Las Vegas meeting was the culmination of three years wooing Jackson out of retirement.

In 2006 the brash American, formerly Rod Stewart’s manager, approached Jackson’s aides. “I was turned down twice by his representatives. I was told he wasn’t ready to go back on stage both physically and psychologically,” said Phillips.

In 2005 Jackson had finally been acquitted of child molestation charges. Spurning AEG’s offer, Jackson effectively fled to Bahrain where he was looked after by Shaikh Abdullah Bin Hamad Al Khalifa, a son of the king.

But the two men fell out and the Shaikh sued Jackson in the High Court in London, claiming the pop star had reneged on a recording contract and owed him money.

Last November, hours before Jackson was due to give evidence in court, the case settled. The pop star, again out of pocket, his debts escalating, needed to act fast.

By December, said Phillips, talks with AEG “started to get serious”. The key was a call made to Anschutz by an old friend Tom Barrack Jr, a billionaire who paid $23.5 million (Dh86.2 million) for Jackson’s Neverland ranch.

Barrack told Anschutz that he and Tohme had agreed to take control of Jackson’s finances. They were rescheduling his $100 million debt and the pop star was ready to meet AEG.

London would be the first venue because the executives were not convinced America was ready to welcome Jackson back. Phillips couldn’t believe what he was hearing.

He said: “I got a call from Dr Tohme who gave it to me straight. He said Michael was in really bad financial straits.”

He met Barrack and Tohme in Los Angeles. “They were restructuring loans and settling all the law suits. Michael had got into so much trouble because he didn’t have the security blanket of managers. As sophisticated as he is, he is very trusting, almost to a fault.

“I gave them the plan I had been working on a four-year period of him playing live, releasing new music and a whole other bunch of commercial tie-ins including a new version of Thriller in 3D that would open on Halloween.”

“Phase one” Phillips told Barrack and Tohme, would be the announcement of 10 shows at the O2 in London. The deal agreed, there was only one hurdle: to get the concerts insured.

Phillips approached the London-based insurance company Robertson Taylor. The complex policy was only hammered out in the past two weeks after Jackson had a rigorous medical check-up at his LA home.

Phillips said: “Michael was put through a whole battery of tests; stress, treadmill, electrocardiogram, bloodwork and he passed them all. It’s a very complicated policy. Its very important he doesn’t perform consecutive nights.

“He’s in very good health. I’m 54, he’s 50 and I would like to have his cholesterol levels. He is a magnet for some of the strangest stories. The flesh-eating disease and things like that are simply not true. I have to say when I saw him last year he looked a little frail, but this time at the MGM Grand, he looked great.”

Phillips now speaks to Jackson directly each day. “He calls me all the time. We spoke on Wednesday afternoon. He said: [putting on high voice] ‘Randy, Randy no more shows, no more shows.’”

There are now 50 shows, stretching into January and February next year. While industry insiders remain sceptical, many are convinced Jackson will mime at least part of those gigs. But Phillips is confident.

“My guts tell me he’s gonna do it,” he said. But none of us will know for sure until July 8 when Jackson takes to the stage for his first night at the O2.

Assuming, of course, that he actually turns up.

Don’t miss it

Tickets for the 50 Michael Jackson concerts have all been sold out. But if you can scrape together Dh128,000, you might find a ticket online. Ouch!

source: http://gulfnews.com/about-gulf-news/al-nisr-portfolio/tabloid/articles/showbiz-coup-of-the-decade-1.29373

© 2009 MJ The King Of Pop