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AEG Live Entertainment and Dr. Tohme Tohme in a game against Michael Jackson. FRAUD, LIES AND DEVILISH INTENTIONS

September 14, 2011

It is high time we analyzed the contract between AEG and Michael Jackson from the point of view of its content and intentions of the parties. Michael’s intentions were honest and clear enough – he wanted his children to see him performing, give first class shows to his fans and receive his hard-earned money for the concerts.

AEG’s intentions are something much more intricate and are not that obvious.

Several months ago we already approached the AEG contract but it was such a painful read that I focused all my five posts about it on finding out whether those horrid papers could indeed be valid.

Fortunately it turned out that they were a cut and paste job originally based on an almost valueless Letter of intent addressed to Dr. Tohme Tohme. The opening and closing pages of the Letter were part of a correspondence between him and Randy Phillips and the text which still remained of the original letter pointed to the contract being far from finalized.

Fraud, lies and forgery

For lack of a real final contract with Michael Jackson the party opposing him apparently replaced the inside of the letter with clauses typical of a contract and heavily slanted in favor of AEG, combining the highly formal pages in the center of the document with the informal pages on both ends of it and thus creating an ‘agreement’ which was full contradictions in both form and meaning. The inside of the agreement said that it was final, but the last page of the same document said it was not – the closing phrases still betrayed that it was a letter and left no doubt that the final agreement was still to be negotiated:

  • By signing below each party acknowledges its agreement to the foregoing and agrees to negotiate the definitive agreement expeditiously and in good faith.

Very truly yours,

AEG Live, LLC

Brandon K. Phillips

President & CEO

AEG Live LLC

Michael signed this letter, agreeing to whatever preliminary terms it contained, and signed it only in the capacity of an individual Artist. However since the Artist was no real party to a contract with AEG, his signature in that particular box (on the right) is carrying little or no weight.

He also took the necessary precaution not to sign the box on the left as a representative of Michael Jackson’s company, LLC,  which was crucial for the agreement. It is this decisive signature displayed to us by AEG which raises so many questions now. It looks like a poor imitation of Michael’s handwriting and the fact that it is a forgery is seen with a naked eye:

                                                             

Of course the fact that Michael’s crucial signature was forged is absolutely outrageous, but it helped us to realize that he never signed the “final contract” with AEG and this gave us the first sigh of relief – contracts carrying forgeries are no contracts and cannot be effective in principle.

Further investigation showed that the attachments, which form an integral part of each contract, often contradict the AEG contract itself and are also either unsigned or undated, or both as is EXHIBIT A which is central to the contract as it states its basic definitions on which the whole contract depends.

All these discrepancies finally turned the AEG so-called agreement into a bundle of odds and ends which are cleverly adjusted to each other but will hardly survive a serious scrutiny in court.

For details of the above let me refer you to posts 1 – 5 which are discussing the formal aspects of the AEG agreement. If you have enough patience to read them it will allow me not to repeat the numerous arguments made there proving that the papers presented by AEG are actually a cut and paste job.

Though Michael Jackson cannot be returned back to life the fact that he never signed those horrible papers is still some kind of a consolation to those of us who were fearful that Michael could have voluntarily agreed to the AEG slavery terms due to his need for cash or could have been trapped by the AEG devilish cunning due to lack of legal support from his lawyers.

It turned out to be neither of the cases – since he didn’t sign this ‘contract’ it means he didn’t agree to AEG ‘s terms, and since he didn’t agree to their terms, he most probably managed to see through their devilish plans. However even if he understood their dirty tricks it didn’t make his life easier – the concerts were already announced and he had to go on with preparations hoping that in the end they would manage to sort things out.

Another possibility is the AEG did not show him the final papers and he was being guided by the preliminary documents only. I personally prefer this variant as this way Michael was at least saved from the offense and insult of this contract.

Dr. Tohme Tohme

The AEG contract is proof of the fact Tohme was one of the key figures in the AEG scheme and though Tohme was a legal nobody to Michael and his company (he said he wasn’t working for a salary and was just helping Michael), he carried out all negotiations with AEG and took the most crucial decisions on behalf of Michael Jackson – as the terms of the ‘contract’ he himself agreed on with AEG allowed it.

In accordance with their ‘contract’ the only thing required of Michael Jackson for finalizing a decision was to send his consent to AEG using a fax machine and a copy of Michael’s signature on the paper, and the deal was made. Since all his correspondence was handled by Tohme Tohme (and the contract does not provide for any other alternative) this opened vast possibilities for fraud and there might be no doubt that a ‘fax machine consent’ was that truly miraculous way in which the initial smaller number of concerts turned into 50 overnight.

The fact that the $100,000 monthly payment to Tohme was forced on Michael by AEG (though it was none of their business how much he paid to his staff ) shows once again in whose interests Tohme Tohme was working.

A thorough study of AEG’s papers will also tell you that there is a big discrepancy between their ‘contract’ and attachment to it saying who will pay Tohme – the contract pretends that it is AEG who will pay him, while the attachment places Tohme’s salary fully on Michael’s shoulders.

See the fraudulent way AEG goes about this business:

First the contract says that the Artist’s company is to pay their own management costs with the exception of Tohme. Tohme will be included in the production costs which we assume to be AEG’s responsibility:

Point. 6.8:

  • With the exception of the monthly fee owing under the terms of a separate agreement with TT International, LLC for the services of Dr. Tohme Tohme (not to exceed $100,000 per month), which shall be included in the Production Costs, Artistco shall be responsible for and shall pay all costs associated with management …… of Artist and/or Artistco.

To put it simply the Artist’s company is to pay its own managers, with the exception of $100,000 to Tohme Tohme because this money will be part of production costs. After reading this statement every normal person will assume that the production costs will be borne by AEG.

But the attachment to the contract (Exhibit A) explains to the naive us that production costs will be deducted from compensation to the Artist.

This point means that when dividing their profit only the Artist will have to deduct production expenses from his half, while the Producer will add this part of profit to his. But then the Artist will be the only one who will cover the expenses too (irrespective of who initially provided the money – even if they lent the money to you they took it back).

Thus by a change in a mere couple of words in its attachment to contract AEG placed the production costs, including salary to Tohme Tohme, on Michael’s shoulders. The only good thing about the attachment (Exhibit A) is that it is undated and unsigned.

See for yourself – Point 3 of this Exhibit says that the Artist will receive his money after all Production costs are deducted from his “Contingent Compensation” :

  • “Artist’s Net Tour Income means the Contingent Compensation minus the sum of Production Costs”.

Michael’s insurance was extended for Tohme! (click to enlarge)

Even Michael’s insurance was used by AEG as a tool to let Tohme sneak into a deal between AEG and Michael Jackson. The cancellation (medical) insurance of the Artist was one of the main conditions of the contract and the attachment said that as soon as the insurance was obtained, payments to Tohme were to start.

In order to provide at least some formal link between Tohme and Michael Jackson, a special amendment was made to the insurance policy to include Tohme there and make him part of the tour at least in this indirect way.

As I’ve said Exhibit A of the “contract” provided for Tohme Tohme’s involvement in the tour by saying that his salary was to be included into Production Costs (to be covered by the Artist). Its point 8 says:

Exhibit A, point 8:

  • Production costs means the following cost to the extent they relate to Shows: ……

(e) at such time as Artisco obtains the cancellation insurance … and Promoter receives written evidence that it has been named as a loss payee of such cancellation insurance, the mutually approved direct, actual costs of Artist-related management and staffing pursuant to the terms of a separate agreement with TT International, LLC for the services of Dr. Tohme Tohme (not to exceed $100, 000 per month) [will be included into Production Costs]

(e)* travel and transportation costs……..

(*Please note the double use of point (e) in the list. It most probably means that someone meddled with the paper and the point about Tohme was added to it later).

The numerous dances around Tohme Tohme’s name in AEG papers leave no doubt that Tohme was being taken care of AEG, had a tremendous mutual understanding with them and was working against Michael Jackson’s interests as he was actually working for the other party.

In the time prior to his death Michael said to friends that he “didn’t know what his deal was” as it was Tohme who usurped full power in his hands. In order to understand why Michael didn’t fire this man (at least earlier than he did) we need to recall the style of Tohme’s management as it was described by Michael Jackson to June Gatlin:

JacksonTapes Put Manager Dr.Tohme Tohme In The Spotlight

MICHAEL JACKSON’s former spiritual advisor has come forward with new taped conversations in which the King of Pop revealed he was terrified of his chief aide, Dr. Tohme Tohme.

The mysterious Tohme appeared to be in charge of Jackson’s affairs in recent years and is believed to be the mastermind behind the late pop superstar’s ill-fated comeback shows inLondon.

But Jacko’s spiritual guru June Gatlin has now revealed her client was scared of his manager – and he agreed to be taped talking about his relationship with Tohme.

Gatlin says, “He was afraid of who this man is, afraid of whatever this man may be capable of doing… He had taken over Michael’s complete life.”

The advisor has handed over the tapes she recorded of phone conversations with Jackson in September 2008 to NBC News inAmerica.

On the tapes, the King of Pop can be heard telling Gatlin, “This guy, he just… has ways about him… There’s a divide between me and my representatives and I don’t talk to my lawyer, my accountant. I talk to him and he talks to them.

“I don’t like it. I wanna get somebody in there with him that I know and can trust. I don’t know what’s in my accounts.”

Gatlin advised Jackson to investigate his manager.

She tells NBC, “Michael said, He’s (Tohme) mean, he’s trying to keep me and separate me from everybody and everything that I love.”

Jackson severed ties with Tohme in May (09) after learning his manager had threatened the boss of a California auction house over memorabilia items that were set to go under the hammer.

After rehiring svengali Frank DiLeo to look after his affairs, Jackson sent a letter to all business associates, in which he insisted, “Dr. Tohme Tohme is no longer authorized to represent me.”

But, Tohme spoke on behalf of Jackson hours after he died and conducted an interview with NBC two weeks after the tragedy in June (09), when he stated, “I’m still in charge of Michael Jackson’s business until otherwise I am informed not to do so (sic).”

http://www.contactmusic.com/news.nsf/story/jackson-tapes-put-manager-dr-tohme-tohme-in-the-spotlight_1113819

AEG the horrible 

As a result of a close link between Tohme Tohme and AEG they came up with so outrageous a contract for Michael Jackson that, to be frank, I hope that Michael never saw the final paper. It is so horrible a document that imagining him reading it and being tormented and humiliated by its nastiness will make you cry over each of its pages. If Michael didn’t see the final variant we can at least hope that he didn’t feel the insult of it and didn’t know what future awaited him if he went along with AEG further.

However for us their contract is a perfect tool to understand what plans AEG had for Michael Jackson and how they tried to implement them with the help of Tohme Tohme. The knowledge of intentions the AEG Live Entertainment company had for the best performer in the world will show what a monster we are dealing with.

Before we go over the main points of the AEG horrible papers you should promise me that you will not exclaim at every page of it, “How could he agree to that?” or “Why did he put his signature under it?” . The thing for us to always keep in mind is that Michael never signed them and therefore never agreed to what AEG wanted of him.

All he signed was a preliminary letter of intent, which was nothing meaningful, and two documents – Inducement Letter and Promissory Note. The Promissory Note carries Michael’s signature on a separate sheet of paper, which is not done in serious documents (a separate sheet may be attached to anything at all) and considering AEG’s exploits in meddling with the other papers, we cannot rule out that Michael could have put his signature under a totally different document which was attached here at a later time.

In short, please nip in the bud all questions of ‘how could he agree to this” type because there is absolutely no proof that he ever agreed to any of these terms at all. Let us look at the AEG documents only from the point of view of their intentions towards Michael, which glare from each page of their papers, and that will tell you what AEG wanted of Michael Jackson and what they wanted to do to him.

Inducement Letter

Though Randy Phillips told us on numerous occasions that AEG had been chasing Michael Jackson for many years before they finally managed to get his consent to the shows the current Inducement Letter presents the case as if it were Michael Jackson who induced AEG into entering a contract with him (this is why it is called ‘inducement’):

AEG turned this Inducement letter into one of their conditions for providing the Artist with advance money.

The reason why they needed the Inducement letter so badly was because it was a means to pass over full authority from the Artist to the Artist’s company called by AEG  “Artistco”.

This enabled them to do business solely with Artistco and exclude the Artist from all major business decisions. Considering that it is Dr. Tohme whose shadow is standing behind Michael’s company (Artistco) the purpose of the Inducement Letter becomes clearer – it is him who was getting power for further negotiations with AEG and it is him whom AEG wanted to negotiate with:

  • The undersigned [Artist] hereby… represents and warrants that Artistco has the right to enter into the Agreement and to assume all the obligations, warranties and undertakings to Promoter”

The Inducement Letter carries no date and only mentions the contract of January 26, 2009, the reference to which doesn’t show when the Inducement letter was signed.

The Inducement Letter also mentions a certain collateral and thus links this paper to another crucial attachment called Promissory Note. The dictionary gives the following definition of such a note:

  • “A promissory note is a written promise to pay a debt.”  

Promissory Note

Promissory Note is made in the name of both Michael Jackson’s Company and Michael Jackson the individual (which is very rare case for this contract) who jointly form an entity called “Maker” who promises by this promissory note to do as follows:

  • “to pay on a joint and several basis, to AEG Live (“Holder” or “Promoter”) .. the principal amount of of $6,2 mln. with interest on such amount until paid…”

In addition to the Inducement Letter this document is the second AEG’s primary condition for Michael Jackson to receive his Initial Advance.

All artists are entitled to an advance – it is similar to advance money a writer receives from his publisher before he presents the text to him and a request for an advance is an absolutely common thing to do. It is not supposed to be returned in case the undertaken project is realized and can be recouped by the other side if the project fails.

In Michael Jackson’s case the advance is $6,2 mln. and on the face of it the terms of its provision are quite favorable – there will be no interest on the sum until the Maturity date, and the Maturity date can be prolonged by both sides, and it is only the Maturity date itself which is stated in such in vague and complex way that it needs a whole investigation to find out what it actually is.

The importance of the Maturity date is overwhelming. It is the time when the advance given to the Artist will have to be paid back in full as the Promissory Note puts it:

  • Principal shall be due and payable in full on the Maturity Date”.

The Note says that one of the variants of the Maturity Date (there are variants there due to the usual “whichever is the earlier” speculation) is 6 months after the Promoter makes a written request for such payment. The Note further refers us to certain conditions stated in 4.2.5 of their Agreement.  Agreement is of course too grand a way to call this cut and paste job, but let us put up with it for the sake of convenience.

The conditions stated in 4.2.5 say that Promoter will have the right to recoup all Artist Advances if  by March 1, 2009 the Artist’s company a) does not obtain a cancellation (medical) insurance, b) does not name AEG as the loss payee, and c) the Promoter is unable to obtain cancellation insurance to cover the risk of loss of their expenses.

Mind you that in AEG’s twisted terminology their own expenses are called “pool” expenses which for all other people would mean joint expenses. However AEG does its business in such a way that you never know what their terminology is and all their terms require constant checking and rechecking.

For example, you can learn the true meaning of some definitions only from some God-forsaken attachment (I mean Exhibit A) with no signature or date on it, which is so frivolous a document that it enables them to write there whatever they like and attach it to the contract at any (later) time, thus changing the whole meaning of the basic text of the contract.

So if Pool expenses are the Promoter’s expenses only, it  will be unclear why the Artist is to pay back his advances if the Promoter doesn’t receive an insurance covering the Promoter’s expenses only. But if Pool expenses are understood in the general meaning of the word (as  joint expenses)  this point becomes clear and understandable – if  the parties are unable to get an insurance policy to cover their joint losses it might be risky to get into the deal and this can put a stop to their initial plans. And if the plans are off it is natural to ask the Artist to return the advances received. AEG wanted to create the impression of such a natural situation though the real meaning of this point is different.

The idea of a possible cancellation also lies behind the medical insurance to be obtained by the Artist – if he is not fit for the performances, the deal will be cancelled and the Artist will have to return the advance. This will have to be done within 6 months from the moment AEG asks for it – therefore if the insurance is not obtained by March 1, payment of the advance will be due on September 1.

But wait – what if the Artist passes the physical examination later than March 1, 2009?  Michael did pass the physical examination in March 2009 (with flying colors), but the medical insurance was obtained from Lloyds only on April 24 (at least this is the date they state as the beginning of the insurance term). Though this difference in the time of obtaining an insurance is a formal thing it is still a deviation from the agreement, but it was apparently settled amicably between the parties as we haven’t heard of any reprisals on AEG’s part.

But what if Michael hadn’t passed the physical at all?

Then he would have had to return the advance of $6,2 mln.

Could it have been a problem for him?

You think it couldn’t –  if he was prudent enough to keep the money under the carpet until after the medical examination was passed, correct?

But if you think that way it will be a big and grave mistake on your part.

The thing is that AEG gave the Initial Advance to the Artist not for his free use but on several harsh conditions. The two major demands on how the Artist was to use the $6,2 mln. advance were:

  1.  to immediately transfer $3 mln. to 2 Seas Records company
  2.  to set aside $1,2 mln. for renting a house evidently found for Michael either by Tohme or AEG and at the monthly fee of $100,000 too. Extra precaution was made for the Artist not to get cash in the latter case – AEG was opening a Letter of Credit for the sum of $1,2 mln. which means that the whole sum was to be kept in the bank, from which the money was to be remitted to the owner of the house on a monthly basis.

Not going now into detail as to whether AEG had the right to set all those conditions on the Artist or not (I think they didn’t), let us calculate how much remained with the Artist after all those deductions were made. And if we deduct $3 mln. to Sea Records and $1,2 mln for the house the Artist will be left with $2 mln. only.

Possible consequences

And now let us assume that he didn’t pass his physical test after all those sums had been forcefully taken away from him and he had already rented a house and made some payments for it. Or let us imagine even a more ridiculous situation that AEG did not obtain an insurance for covering the loss of its so-called “pool” expenses (which was a thing wholly dependent on AEG and AEG alone!).

In the event of the above AEG could demand the $6,2 mln. back and if the Artist didn’t repay the sum within a short period of time they could impose heavy sanctions on him. However we know that the Artist was forced to spend two thirds of  the sum and all he had was $2mln. left!

I have heard of situations when a  lender first makes their borrower spend his money and then “creates a situation” requiring immediate repayment and applies severe sanctions since he can’t pay. Frankly, it even reminds me of those criminal dealers who first give a loan to a shop owner who wants to buy some goods and then burn his shop so that he spends all the money on its renovation, and when he is unable to repay the loan they take away his house because it was used as collateral for this loan.

What is clear is that if, for some reason, the Artist didn’t repay his advance back (within 6 months from AEG’s written request) the sanctions imposed on him by AEG were to be very severe. Let us run back to the Promissory Note and see what these sanctions were like.

 Sanctions

The first thing we discover in the Promissory Note is that in case of default in payment it is naturally the FULL sum of the Advance which was to be paid back to the Promoter, though they themselves know perfectly well that they forced him to give away two thirds of the sum.

Another thing we suddenly see is that the follow-up clauses of the Promissory Note suddenly mention some monthly installments. The Promissory Note is vague as to when the first installment is to be made, what the schedule of installment payments is and what sum each installment amounts to (what if AEG wanted him to pay a million a month which would be impossible to make?).

These monthly installments were accidentally found by us in the least likely place (called “prepayment”) and as I say were not accompanied by any schedule, amounts to be paid or a clear date of starting payments. These kind of things are totally unacceptable in contracts as nothing should be left to guesswork there – vague points like that are room for interpreting it in a highly frivolous way.

And judging by the Promissory Note these monthly installments are no joke.

If at least one of them is delayed by more than 5 business days a so-called Event of Default is to take effect, and as a result of this Event of Default the Promoter had the right to demand the full sum of the advance to be paid all at once!

The logic here is as follows – if you can’t pay the first installment (say a million) and delay payment by 5 days we penalize you by the need to pay the full $6,2 mln and immediately too. Oh, we see that you wanted to pay in portions? Or you ask for a short delay because there is a point in the Promissory Note saying that “the parties may extend the Maturity Date by signing a written modification of this Note”?

click to enlarge

No way, dear artist, AEG’s position will be relentless here.

A certain point in the Note called “No Waiver by Holder” says that  the need to “totally repay” (or pay the full sum) will take place even if the installment is made, but made with a delay:

  • “the acceptance by Holder [AEG] of any payment under this Note after the date such payment is due… shall not constitute… the right to declare an Event of Default [or is no reason not to demand full payment at once]. 
  • The acceptance by Holder of a payment of a portion of any installment shall not cure or excuse the default”. [same  –  the demand to pay the full sum immediately will still be there]

And what will happen if the Artist is unable to pay the full sum of $6,2 mln. immediately upon AEG’s demand?

A disaster will happen in this case.

 AEG will receive full rights to the Collateral.

Collateral as the ultimate goal

In the Promissory Note the Collateral is understood as a “security interest” in the Artist’s company’s “right, title and interest in, to and under the following properties, assets and rights, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof: contract rights, the right to the payment of money in which Artistco has an interest, insurance claims and proceeds, commercial tort claims, securities and all other investment, property and all general intangibles (including all account receivable and payment intangibles)”.

However if the Promissory Note refers to only a “security interest” in all those rights and property, AEG’s so-called Agreement in its point 16.3 is much more definite.

It refers to the Artist’s property as “Security” and makes a flat statement that in case of a default in paying back the advances the Promoter can “exercise their rights” to ALL  properties, shares, interests, etc. listed above – whether they are owned now or will be owned in the future.

To ensure that all future property will also be theirs the Promissory Note says that in an Event of Default AEG will abe irrevocably (or without a possibility to reconsider it) appointed as the only attorney-in-fact of the Artist’s company.

The attorney-in-fact will have full authority to act in the name of the company to do as follows: 

(a) ask, demand, collect, sue for, recover, compound, receive and give acquittance and recepts for, money due and to become due in respect of the Collateral;

(b) receive, endorse and collect any drafts or other documents in connection with it;

(c) file claims or take any other action and proceedings necessary for collecting the Collateral;

(d) file financial statements or amendments relative to the Collateral.

In short if the Artist does not immediately pay back the advances AEG will receive full right to take any legal or other action necessary on behalf of the Artist’s company in connection with claiming the Collateral.  

And the Collateral is the Artist’s EVERYTHING.

If we recall from where all this avalanche started we will see the following chain of events:

1.   If, for example, the Artist does not pass his medical examination (or AEG does not get cancellation insurance to cover loss of its expenses)  AEG will use its right to demand the advances back.

2.   Since the Artist has only $2mln. left after most of the money was taken away from him by AEG’s forceful and inappropriate demands, there is a danger that he will delay repayment of his advance.

3.   However if he delays his first we-don’t-know-how-big monthly repayment by at least 6 days they will demand that he pays the full sum of the advances immediately.

4. And if the Artist is unable to pay everything at once he will lose his Collateral and all property and rights he has now or will have in the future.

5.    AEG will become his company’s attorney-in-fact and will obtain full rights to sue, recover and collect money in any way they think fit on behalf of the Artist and his company.

6.   If Michael’s music catalog is part of the company’s assets AEG will receive direct access to it. If it isn’t, they can sue other Michael’s creditors or can obtain the catalog by repaying the loan – thus getting all Michael’s precious assets, which he cherished so much and wanted to leave to his children.

7.  And AEG’s Promissory Note by the way states that the Note is binding even for the “party’s successors and assigns”. Given that the Artist as an individual was also considered a “party” in this separate transaction it means that AEG wanted even Michael’s children to be bound by the obligations the AEG guys imposed on their father!

A stand-by variant

Let me say that if the Artist did the impossible and managed to pay the initial $6,2 mln. advance, Promoter AEG Live Entertainment had a reserve variant aimed at the Artist’s default of payment – it was the production advances also placed on his shoulders and provided for by the contract in the amount of “not exceeding $7,500,000”.

Michael never saw this money as it was paid by AEG directly to the providers of various services against their receipts. He was only promised to be “kept informed of the production costs”. And though at the initial stage it was AEG who was paying the bills, AEG took steps to stealthily shift the production costs onto the shoulders of the Artist, thus making production advances his responsibility too!

Initially the AEG ‘contract’ did not say a word about the Artist having the pay the production expenses. On the contrary we’ve seen in an earlier example with Tohme that Tohme’s salary was included into production costs and the contract practically said that these costs were none of Michael Jackson’s business. In fact many of us remember Randy Phillips complaining how costly the production of the show was and all of us thought that it was AEG who was paying for the show.

Michael Jackson also thought that way and was heard to express worries that AEG had spent too much money on production (so he couldn’t let them down). Poor thing, he didn’t’ know they wanted to make him responsible for all those expenses….

We wouldn’t have known either if the attachment called Exhibit A (the one with no date or signature) hadn’t opened our eyes to their plans. What the contract says about the production expenses is one thing, and what Exhibit A says about the same is another thing.

And Exhibit A says that the production costs are to be the Artist’s business.  Remember its formula of the Artist’s net income where the idea is expressed in a terribly roundabout way?

  • “Artist’s Net Tour Income means the Contingent Compensation minus the sum of Production Costs”.

Yes, in all the innumerable pages of various papers, making up their cut and paste contract, it is only this short sentence which is telling us the truth about who is to pay for producing the show. And the truth is – the one from whose share the costs are to be deducted is the one who eventually pays for them.

But if the costs are Michael’s business than the production advances in the amount of $7,5mln. are his responsibility too! And it does not matter who is spending the money now – it is still Michael who is to repay it to AEG!

In fact after a long and tiresome analysis of the text of the “contract” I did find a piece which shows that AEG did indeed want to recoup the production advances from the Artist’s company – strange that I noticed it only after Exhibit A opened my eyes to it. The clause found in the contract said:

  • 8.2. Promoter shall be entitled to recoup such production Advances from Contingent Compensation otherwise payable to Artistco.

Summing up the above, in case AEG found a pretext to find fault with the Artist and demand repayment of all the advances back, the Artist was to pay not only the $6,2 mln. of the initial advance which he received of his own free will, but also the $7,5 mln of production advances which were placed on his shoulders and which he was probably totally unaware of!

The resulting sum would have been $13,7 mln, and this was surely too much  a sum for the Artist to raise and within a short period of time too.

This is exactly the scenario AEG hoped for as it gave them a chance to start that avalanche of payment demands which could have brought them to the Artist’s Collateral.

And his Collateral was their primary goal.

Could it really happen?

Let me assure you that none of the above scenarios could really take place in real life as the “contract” which was the basis for all that dirty scheming is a fraudulent and invalid one. Besides the forged signature of Michael Jackson in the crucial part of the ‘contract’ there are too many other discrepancies between its various parts for this filthy package to be a credible document – though of course it would have taken time to prove the matter in court.

However the fact that AEG built their highly detailed and intricate ‘contract’ around the idea of obtaining Michael’s collateral – in case of his inability to pay back the advances – shows the intentions AEG pursued while making that document.

After this ‘contract’ had been made, all that remained to be done was creating a possibility or at least a pretext for triggering off the events for which all necessary arrangements had been made in their contract in advance.

Any pretext for “pulling the plug” was good enough for them

Any real or fictional pretext for demanding the advances back was good for AEG and the contract left numerous other opportunities for a similar course of action.

Bringing their relations with Michael to a boiling point when they could go on a riot against him and “pull the plug” was a really big opportunity they were looking for. It would have enabled them to start the chain reaction of  the well-taken-care-of events, the outline of which is so expressly stated by their contract.

However even while Michael was alive things began to take a turn for the better. Michael took drastic measures to sanitize the situation – Tohme was fired and new people were employed. Michael’s business affairs were passed over to his loyal manager Frank Dileo and a smart old-time lawyer who would have been able to eventually sort out the problem with this cut-and-paste AEG contract.

And this means that Michael knew what they were up to and was fighting them until his last day.

39 Comments leave one →
  1. May 17, 2012 4:06 am

    Well well… There is nothing new under the sun…. If I never read another book about Micheal … I read his own story .. MOON WALK.. and in it Michael himself talks about his dealings with the POWERS THAT BE.. meaning MOTOWN BARRY GORDY and FIRING his DAD Joe and finally $ONY.. Fans need to read THIS BOOK… it will clear up a lot so speculations as to why MJ isn’t here.. I have always believed that Michael had words with AEG WHY he’s not easily IMTIMIDATED… or pushed around… No MJ never signed any of those papers .. including the one for Dr.Murray.. Murray stated that ‘ AEG was going to pull the plug on the show.. if MJ didnt straighten up his acrt… Then y did I have the impression that it was really MJ who told them if they didn’t change the conditions of the contract that he was WALKING … and rightly so… HE NEVER SIGNED ANY THING.. this is what Murray was hearing in that house… The WAR was between MJ and AEG… HE’S a businessman.. back to MOON WALK…Michael is never to be taken lightly about anything BUSINESS..In FRANK CACISO’S book My FRIEND MICHAEL.. you have to read the way Micheal stepped to $ony about them SABOTAGING his INVINCIBLE ALBUM and he was with in his rights .. he knew what they were suppose to be doing.. But when he announced that this would be his last album $ONY knew that the major BREAD WINNER was leaving .. them ..their prize SLAVE had bought his freedom by doing the unthinkable and buying the ATV CATALOG.. and setting himself FREE.. did yall really believe that these HORRIBLE BABALYONIANS were going to let this PRIZE BLACK SLAVE leave their PLANTATION… with their GOODS.. Don’t think so… HELL NO!! AND further more Y is FRANK DEAD and Peter Lopez..

    This is the deal.. from the day that Michael purchased THE ATV CATALOG… The White MONEY MONGERS were waiting for him for a time that they would do him in.. Think about it… I recall when Michael wanted to buy Marvel Comics he was BLOCKED do U think that they were really going to allow a BLACK MAN to buy their shit.. Look at NEVERLAND..they fought with him about it all the time ,,trying to get him to get a smaller place… NO GO… $ONY kept Michael touring on long extended tours..in Moon Walk he talks about how long and tiring those tours were. especially the ones he did with his brothers… he also talks about how people STOLE from him.. he had a beautiful ring that the late Jackie Gleason gave to him ,, when he went to look for it was gone.. I felt so sorry for him..He was their BOSS what right did they have to STEAL from him.. Michael was into PRODUCING and Directing.. Him and his son PM were taking lesson , classes for this…..The INDUSTRY didn’t want him doing that.. His KINGDOM PRODUCTIONS is what he was trying to bring to life with the help of THE PRINCE OF SAUDI ARABIA.. But because of his TOURS he couldn’t commit the time… Michael’s Money problems weren’t the making of his OWN… and this shit with THIS AEG CONTRACT is a PERFECT picture of how they were tying Michael’s hands in order to get his WEALTH… IF he couldn’t pay they would take everything…

    $ONY COMMITTED a crime against Michael when they paid radio stations to not play his INVINCIBLE ALBUM… They strapped his hands with a 360 million $ loan… if they hadn’t done that he would have paid the loan off interest FREE… BUT we all know that isn’t they way THEY DO BUSINESS ..COLLECTING TIL THE COMING OF JESUS… same way with this shit now.. They NEED TO BE IN JAIL… THE FOR CONSPIRACY OF THE CENTURY FOR FORCING AND THREATENING MICHAEL JOSEPH JACKSON !!

    Michaels children are HEIRS TO A MUSIC DYNASTY THAT WAS FORGED BY THEIR FATHER… and NO!.. Michael himself passes his CROWN to his son P.M. while he is sleeping on his THRONE.. The two guards beside him are the CASICO BROS… pay close attention… and what that PAINTING MEANS… Michael always sent messages in his MUSIC and his ART WORK… #mjhistoryonFIRE!

    Like

  2. February 29, 2012 1:10 am

    @vmj Reading Dr Karen Moriarty’s book – this blog (in particular, the information on AEG’s promissary note) is mentioned as one of her sources. A second vmj blog on Conrad Murray and AEG live is also mentioned as a source. In fact, quite a few MJ sites/bloggers have been listed as sources for Dr Moriarty’s book.

    To be listed as a source emphasizes just how important and valuable the work that vmj and other MJ fans/researchers are doing now is for Michael and his legacy.

    Like

  3. CassieforMaxwell permalink
    February 22, 2012 10:47 pm

    There is no way I will ever believe that Frank DeLeo conveniently died right before the trial ensued of natural, unhampered causes. I am also still concerned with the sudden “suicide” of Peter Lopez. Those two incidences were just too convenient in my opinion and has continued to cause me great distress.

    Like

  4. December 5, 2011 9:37 pm

    http://mjjiff.org/

    This is a site of MJJ Innocent Forever Foundation, established by William Wagener who is collecting money to make a truthful documentary about Michael Jackson and what Tom Sneddon wanted to do to him.

    There have been some people who offered donations to this blog. However this blog is free and does not require money.

    If these people are still in a position to help, please go to William Wagener’s site instead and make a donation for his documentary.

    This will be your dearest present to all of us here and to Michael in the first place.

    Thank you in advance.

    Like

  5. December 5, 2011 12:19 pm

    http://mjjiff.org/

    Like

  6. Truth Prevail permalink
    November 30, 2011 7:33 pm

    this thome character has the look of a italian mobster! has anyone heard about him from the jacksons like has jermain mentioned him anywhere?

    Like

  7. sanemjfan permalink
    November 30, 2011 3:10 pm

    @ Galina
    That’s ok! You’re English is fine! I’m currently reading the book, and I’m on Chapter 7 “Betrayal of Justice”, and I expect to be done with the book by next week. Your review is spot on, and I think that he spent way too much time talking about his own experiences of discrimination. To me, it wasn’t necessary to be that specific, and to dedicate 5 or 6 chapters to his discrimination lawsuits, especially when the book is advertised as one about MJ.

    Like

  8. Galina permalink
    November 30, 2011 10:31 am

    I read the book What really happened to MJ about an year ago as soon as it came out. About half of the book is on the injustice of black promoters etc.Now I am taking Rowe’s opinion with a grain of salt as he was sued by R Kelly and other artists. Yes, there is inequality between black and white promoters,, but he did not deliver on several occasions…As for MJ and AEG ,, Rowe clearly showed how AEG was there only to exploit Michael with the contract, many advances, pre-sales of tickets behind MJ back and other things. I do not know if Michael would make a whole a lot of money after the tour,,, the expenses were very high and in many cases inflated and MJ would have to pay for all of it… Rowe was brought (in his words) to overlook the AEG/ MJ contract, Michael did fire him after 2 weeks, Rowe was saying because Randy Philips forced him too..Rowe also puts some blame on Katherine for “giving MJ his privacy” and not going to live with him for few days or weeks when Joe Jackson asked her… Frank Delio was brought by AEG not Michael according to Rowe’s words, Michael never wanted to work with Delio ever again. I know now that Rowe was really working for Joe Jackson,, they wanted to do the J5 reunion concert… I think Michael was pulled in many directions, everyone wanted a piece of him…. that is my very short summary of the book,,, sorry for my English

    Like

  9. sanemjfan permalink
    November 26, 2011 8:52 am

    @MNLady
    I am currently reading the book, and as soon as I’m finished I’ll let everyone know what I think. Thanks!

    Like

  10. MNLady permalink
    November 26, 2011 4:56 am

    Will someone please tell me their thoughts on Leonard Rowe’s book What Really Happened To Michael Jackson…..he has info in there about the AEG contract and a host of other things.

    Like

  11. October 27, 2011 2:44 am

    I think this will be an appropriate time to go back and review this weird contract and all who were part of it.According to info here AEG was paying murray,but Michael was to pay them back after X number of shows or a certain time.AEG had made sure that whatever happens they will win.Randy Phillips was very much part of the riot act.
    K.O. has stated that murray was rude and condescending towards Michael at that occasion.This may not affect the tial,but may give us a better understanding of all that really went on.
    Children lost their father.Take a look at who has profited the most.
    Murray cried in court, what about the tears of Michaels cildren and family.

    Like

  12. Alison permalink
    September 20, 2011 10:04 am

    and if it wasn’t why is it any of AEG’s business?

    Like

  13. Alison permalink
    September 20, 2011 10:03 am

    why would Michael have to pay money to 2 seas records, i thought that was all resolved years ago?

    Like

  14. September 17, 2011 4:58 am

    @ lynande Dileo said Michael signed the letter hiring Rowe because Joe was standing over him. The letter was drafted by Rowe but it’s important to note that several changes were made to the original letter. The changes were in Michael’s handwriting. There was nothing in the letter about Allgood. The changes Michael made crossed out that Rowe was to be in charge of ALL Michael’s “endeavours in the Entertainment Industy.” Michael’s changes appointed Rowe only as an overseer of his finances and the O2 shows in London and that could be revoked at any time – all that in MJ’s handwriting.

    Like

  15. September 17, 2011 3:49 am

    @ vmj What you say about Dileo makes sense. MJ didn’t want to have anything further to do with Tohme so perhaps Dileo was someone who MJ thought could at least be a middle man between himself and AEG. Dileo was also someone who was definitely more acceptable to AEG than Leonard Rowe was. But the problem with the all the people surrounding MJ is that they all had alternative interests as well. Even Dileo’s allegiance to MJ could be questionable because of the Allgood situation. And for all involved, it was AEG that held the purse strings. So in a way, everyone was compromised by that fact, whether they truly had MJ interests at heart or not.

    Like

  16. September 16, 2011 10:50 pm

    Guys, I’ve just changed the name of the category where my posts about AEG are collected – from “AEG dead” into “AEG the horrible”. The reason for the change is because I don’t want anyone to think that I’m calling people to do harm to them. In fact no one can do them more harm than they themselves did.

    The word was used in its figurative meaning and meant that for me they simply don’t exist any more. However I forgot that some unbalanced people could regard it as a call for action.

    No, it wasn’t that. It was just the opposite of “Live” which they say about themselves.

    Like

  17. September 16, 2011 8:09 pm

    http://www.positivelymichael.com/forums/showthread.php?37-Transcript-of-Raffles-van-Exel-interviewing-Frank-DiLeo

    Claudia, thank you for the link! The document is precious as it conveys the atmosphere of it. I’ve read it only just now as I had to work, so please have some patience before I write what I think about it.

    My first impression is that Frank was a good man, but was more of a friend than a true manager for Michael – at least at that moment when he was only starting. Michael was making plans with him for the future but Dileo practically did not look into any papers. He was definitely not a “book worm” who could have sorted out the papers. He took everything the way it was given to him – the deal and its terms. He didn’t even look further. And I am amazed at the way people were hired for Michael.

    Like

  18. lynande51 permalink
    September 16, 2011 9:46 am

    So Murray said he was fine. I wish someone would answer why Tohme was at that hospital and how did he get there so fast. Michael signed something because Joseph was standing over him a contract with Allgood right.

    Like

  19. claudia permalink
    September 16, 2011 7:47 am

    thank you vindicatemj
    i always learning more thing from you .for my poor english i can’t read them very well.
    thank you do all of thing for MJ.
    and this is another Frank said maybe you are interesting read it
    http://www.positivelymichael.com/forums/showthread.php?37-Transcript-of-Raffles-van-Exel-interviewing-Frank-DiLeo

    PS: I know you belive Frank is good man
    in my heart I hope so.
    but heard some hater Frank, I hope they are wrong.

    Like

  20. claudia permalink
    September 16, 2011 7:35 am

    about Tim in his previous testimony , my interesting is:
    acording to autopsy report
    June 25,they found lorazapan rest 9 (total 30) date april 28(murry name on it) and same time murray order propofol and injectable of lorazapan diazapan
    why?
    and only after two weeks Murry Order them again?
    why?
    why murray buy injectable lorazapan and diazapan so many times?
    from April to JUNE
    every time he order propofol. he same Order both them too.
    why?
    where are these drug now?

    Like

  21. lynande51 permalink
    September 16, 2011 6:20 am

    Jermaine just confused propofol and Demerol on Piers Morgan. Let me clarify. It was not found in either his liver or his brain tissue. If he had taken Demerol recently then it would have been in one or both. Propofol does not give pain relief or induce sleep. It induces unconciousness they are 2 entirely different things. If you want the patient ot have pain relief you must add an analgesic to produce pain relief.

    Like

  22. lynande51 permalink
    September 16, 2011 5:47 am

    The prosecution now needs to petition the court to use the paper receipts and his previous testimony. If the defense objects as I am sure that they will they have lost the trail of the sale of propofol to Murray as evidence.

    Like

  23. September 16, 2011 5:16 am

    Tim Lopez,the Las Vegas pharmacist who shipped liters and liters of Propofol to Murrays baby-mama´s home has disappeared to Thailand.
    Peter Lopez,not a relative as far as I know, committed suicide in May 2010 while in Michaels employ.No note, and family and friends did not understand the reason for it.
    There is something called theft of services, something I expierienced, on naturally a much smaller scale, but there are lawyers in US that specialize in contracts.I only consulted one and received some help,to take it fuurher would have cost too much time and money.Like some lawyers specialize in divorce and domestic conflicts there are all kind of specialists.For this, something WRONG on this scale, 4 years for murray only, is just pennies

    Like

  24. lynande51 permalink
    September 16, 2011 1:45 am

    I think this article bears a mention as it now seems that we have missing and or unreachable witnesses in the Conrad Murray trial
    http://edition.cnn.com/2011/CRIME/09/15/california.conrad.murray.trial/index.html?eref=rss_us

    Like

  25. September 15, 2011 7:31 pm

    Apologies for saying Frank Dileo mentioned “four” lawyers not three plus Tohme. I went back to the interview Raffles van Exel did with Frank Dileo to see if there was something in there about it – there wasn’t, but during that interview Dileo is asked a question about Tohme. Dileo responded by talking about Murray instead. It might or might not have been an honest mistake by Dileo to do that. The only time he mentions Tohme is towards the end of the interview when he says Dr Tohme is not on the Sony ATV board. Dileo also says Michael signed a letter of engagement with Katz and that Michael appointed Katz and Dileo to the Sony ATV board and they were getting ready have conversations with Sony-ATV to look into expenditures. The whole interview is worth watching or watching again. It’s a later interview (posted on youtube Nov ’09). By this time Dileo knew Murray hadn’t been paid. He also says that Michael hired him but it was AEG who was to advance Dileo’s payment.

    Like

  26. September 15, 2011 4:38 pm

    http://www.hitsdailydouble.com/news/newsPage.cgi?news07696m01

    Claudia, thank you for the link. It is good that Frank left us at least something. Some things confirmed my thoughts, some things are different and need further study. Here are the excerpts we need most :

    – “He called me in March and said, “Frank, I need someone with a little bit of experience. Would you like to manage me again and take care of all this stuff?” And I said, “Yeah, sure.” By the time I came in, everything was signed. Dr. Thome Thome—who is someone I don’t want to talk about in this interview—had miscalculated the scheduling on the dates, which is something I had to take care of, because Michael didn’t want to perform more than twice a week.

    So though Dileo joined him only 6 weeks (right?) before June 25, Michael wanted him as early as March, when the contract was still in the making. His nomination was delayed, most probably due to Tohme’s resistance.

    By mid-May everything had been ‘signed’. I wonder if Frank Dileo saw the same kind of contract we see now or whether he saw it at all. The Estate’s first report to the judge (about their financial results) mentioned that it took them quite a time to obtain all the papers. Since Tohme was not willing to go, he was sure not ready to part with his papers either, same as AEG didn’t want to show the contract to Katherine Jackson and did it only by the order of the judge.

    It is interesting that Dileo doesn’t want to talk about Tohme. His phrase about Tohme “miscalculating” the scheduling is a quite diplomatic way of saying it. Of course Michael didn’t want to perform more than twice a week, but Tohme totally disregarded it. The contract we see now still speaks of 3,5 shows per week, but these suggestions are not binding as the agreement was not “definitive” and the itinerary was still to be agreed on.

    “That contract was read to Michael by three different lawyers, as well as Dr. Thome.”

    So we know at least three of those four who read it – Hawk (Tohme’s lawyer), Kathy Jorrie (AEG’s lawyer) and Tohme again! Who is the fourth we don’t know yet.

    The fact that they “read” the contract to him is awful because this particular contract is made in such a way that though separately each part may sound more or less okay, when taken together it is a disaster. You need to print it out and compare different parts of it, otherwise you won’t see the discrepancies.

    It is typical for this contract to say that point 3 depends on point 7, and point 7 depends on whether a certain insurance is obtained in accordance with point 9, and point 9 depends on “whichever is the earlier” of three variants in point 11, and point 11 finally says that the Terms it refers to should be understood as attachment A interprets them.

    It is a chain which is impossible to grasp when you listen to it – even if the contract is clean. But if it is not clean and the attachment A is not signed and carries no date (and could be attached to the contract at any time and with any terms) the terms on which everything depends can suddenly become different and change the whole picture. And if you ignore the attachment as without it the contract is only half the story!

    This contract should be studied as an intricate map – with a pencil and a magnifying glass, and even then it will not be an easy nut to crack.

    – Was Michael aware that he was signing for up to 50 individual shows?
    – Absolutely. I read the contract. I know what the minimum amount of dates were, as well as the maximum number of dates. He wanted to beat Prince’s record and be in the Guinness Book of World Records. He was the one who picked the number 50. There were enough ticket sales to do 85 shows, but he was zeroed in on 50. That’s what he wanted and that’s what happened. Dr. Thome had him doing three or four shows a week, though. I was adjusting and moving dates to try to make it more palatable for Michael to do.

    The 50 number of shows is wrong, as the present contract doesn’t say it. The minimal number in the variant we see now is 18 shows in the first leg, while the maximum in the same period is 31.

    But where Dileo is right is that the contract (again if we are to believe its present text) was for at least 2 years (up to Dec.31, 2011) with a right to prolong it. The party interested in prolonging it was AEG as there are numerous “if and unless” restrictions meant to prevent the Artist from terminating the agreement or not prolonging it. If he nevertheless wanted to terminate it after a two-year period the term they used is very interesting – he was to give a “Buy-out” notice which looks like he was to “buy himself out” from this deal (sounds like slavery to me).

    Michael most probably wanted to start with a minimal number of shows, and if all went well intended to turn it into something bigger. But in all cases it was supposed to be done on much more comfortable terms – twice a week as Dileo says and with a minimum of travelling, so that several shows fell on one and the same city.

    Dileo says that Tohme wanted Michael to do 3 or 4 concerts a week? So this is how he was negotiating for him and taking care of his interests!

    – You sat in on most of the rehearsals.
    – Every single one. He was in good condition. He was working out with Lou Ferrigno. He was dancing over three hours every day after his workout. He was prepared. A lot of times he would watch and direct. These are songs he’s sung his whole life. He didn’t have to go full out every day. The last couple of weeks, he stepped it up. On the night before he died, when he came down after doing 10 or 11 songs, Kenny Ortega was at the bottom of the stairs, we all hugged and Michael put his arm around us and we around him, to walk him to his dressing room. And he said, “Frank, I’m ready. I’m doing all 50 shows. Don’t even think that I’m not.” We talked about possibly doing stadiums after the 50. He said, “Frank, I’ve never been happier. Since you’ve been back, things are going well. I can see the light at the end of the tunnel. We did it once. This is our time to do it again.” And that was the last time I saw him alive.

    “He didn’t have to go full out every day” – ABSOLUTELY! Even 3 hours every day and after a workout too were really too much. It wasn’t his obligation to rehearse so hard, it was his wish to do so as he was regarding it as training for himself. Just building up his stamina. The choice was HIS and NO ONE HAD THE RIGHT TO DEMAND THIS OF HIM! It was HIS obligation to provide a first-class performance, and how he achieved that was none of their business.

    “I can see the light at the end of the tunnel” – so this is how he regarded his “cooperation” with Tohme – as something completely hopeless!

    – People were saying Michael was down to 110 pounds and wasn’t in good physical shape.
    – No, that’s all bullshit. He was not down to 110 pounds. He was around 140. At his maximum, he was maybe 155.
    – You’re telling me this is a very confident guy, ready to take on this challenge.
    – He knew he was 50 and that the other dancers were young. He built his stamina up to the point where he knew he could do it. Michael’s a competitive guy. I don’t care whether you’re five years old or 40, you’re not going to out-dance Michael Jackson. He’s gonna put it to you sooner or later. And he worked himself up to that.

    EXACTLY. He was the only one responsible for his performance and was preparing to it in accordance with his own schedule. He knew how to save energy and how to spend it – like any good runner does during a marathon. No one had the right to tell him he should dance and sing at every rehearsal, and how long too. IT WAS NONE OF THEIR BUSINESS. He could as well sit in the first row and just watch.

    – Were you aware that Michael had a prescription drug problem?
    – I didn’t know. I realize it’s come out that he did go to rehab. I asked him in March about it, and he got very indignant. He said, “Frank, do you think I would do something that would jeopardize my kids and leave them alone? Don’t be ridiculous.” So what do you say? Do addicts ever admit they’re doing drugs? No. So, I got to take the man’s word. He’s 50 years old. How far could I push him? I never heard of the stuff he supposedly took [propofol]. When I heard about that on TV, I couldn’t believe it.

    Over here Dileo completely misinterprets the whole thing and mixes up Michael’s earlier addiction to Demerol with the present Propofol. He asked him about “it” – meaning the rehab which was a century ago and of course Michael was indignant over that question – the problem had been solved long ago.

    But propofol is not addictive and Michael wasn’t addicted to it. When there was no pressure and he didn’t have to make 50 concerts he somehow coped with his sleeplessness without it. It was only due to the strain of the concerts that the problem with Propofol arose. By the way when he talked to Dileo in MARCH, there was no propofol even on the horizon – it was bought only in the second half of April as far as I remember.

    – Do you have any opinion about the two doctors under investigation, Dr. Arnold Klein and Dr. Conrad Murray?
    – Michael’s gone to Dr. Klein for years. I don’t know how Michael met Dr. Murray. Michael brought him up to me when he mentioned that part of his contract required AEG to hire him a doctor to be with him in London, and he specified he wanted Dr. Murray, claiming he was his family doctor. The original price he asked for was outrageous. I told Michael I could buy him a whole hospital for that kind of money.

    Michael met Murray through Joseph Jackson. And what he says about Murray makes us think that it was Michael who wanted him after all. We should make a note of it.

    But what is extremely interesting here is that Michael says his contract “required AEG to hire him a doctor”. The variant of the AEG contract we see now does not say A SINGLE WORD about it. And this means that either Frank Dileo did not read that contract properly, or he spoke of some other and totally different variant! And Michael saw something different too!

    – The press reports said AEG was paying him $150k a month.
    – That’s what I OK’d. What he originally asked for was astronomical. AEG did not hire the doctor. That was Michael’s doctor for months. AEG just advanced him the payment, which was part of the budget

    I begin thinking that Frank Dileo did not have enough time to study the contract properly – he is making crucial mistakes here. Firstly, it wasn’t AEG who was to pay to Murray and they themselves stated that it was not their responsibility. Secondly, they didn’t advance him any payments – Murray never received a cent from them!

    If Dileo knew so little of their arrangements with Murray, can we believe his version that Murray was his doctor for months? Formally he probably was, as he attended to his children in 2008, but it doesn’t mean that he was giving him any “drugs”!

    Dileo’s version about the advance money for Murray from AEG may also be an answer to our earlier question. This could be Michael’s version as this was what AEG made him believe. If Frank Dileo is telling us this fairy tale it means he heard it either from Michael or from AEG. In both cases it means that Michael didn’t know that Murray was not paid, was sure Murray was receiving money from AEG and thought that he was a happy doctor by his side!

    Didn’t I tell you that almost every document can help you get to the truth?

    Like

  27. claudia permalink
    September 15, 2011 12:08 pm

    here is Frank DiLeo total said, maybe you like read it 🙂

    ____________________http://www.hitsdailydouble.com/news/newsPage.cgi?news07696m01

    Like

  28. Chris permalink
    September 15, 2011 12:02 pm

    TT International was officially registered on the 20th of January 2009.

    Michael and AEG were supposedly sharing a lawyer as well and interestingly enough this man had 5% stake of the ATV catalog. Like Michael gave to Branca.
    His name was Joel Katz.
    Frank Dileo and Joel Katz were both put on the ATV board after Tohme was “removed”.
    Dileo said 3 lawyers plus Tohme read it to him.
    Despite the fact Londell McMillan was the lawyer for the MJJ Company and Peter Lopez was another lawyer with another company yet was involved in negotiations with AEG back in 2007. None were to be seen at the time of contract signing.
    Raises more questions than answers.

    Like

  29. claudia permalink
    September 15, 2011 11:57 am

    So there were four lawyers? Interesting. One of them was surely Dennis Hawk, the lawyer for Tohme (he is mentioned in the contract as someone to whom all copies of correspondence were to be sent). Another one was evidently Kathy A.Jorrie, who is mentioned in the contract as someone on AEG’s side, and this leaves us with two more whose names we do not know. But it is clear that no Michael’s lawyer were present – he said it himself: “I don’t know what my deal it. I talk to Tohme and he talks to my lawyers and my accountants. I don’t talk to them”.

    ____________________
    in fact, Frank Dileo not mentioned that “four” lawyers read the AEG “contract” to Michael.

    he said :

    That contract was read to Michael by three different lawyers, as well as Dr. Thome.

    _____________

    I think the last lawers is Joel Katz.

    he is MJ’s lawyer,and same time he is AEG lawyer,too.

    by the way accouting to Frank Dileo,he and Joel Katz and he,at the board of Sony/ATV Music Publishing now.

    Like

  30. September 15, 2011 2:30 am

    Michael used to say that snakes are misunderstood.Thome-Thome is a snake of a different kind.Like Morinen this makes me alteratively feel like crying and feeling nauseous.
    On top of all there is a tape where T-T declares his great love for Michael.Nothing seems beyond him.
    Again thank you VMJ for all the work.

    Like

  31. September 15, 2011 12:58 am

    “This makes me want to cry.”

    Morinen, the first several times I read that ‘contract’ I did cry. It is unbelievably nasty. My only hope is that Michael probably didn’t see the last variant.

    Like

  32. September 15, 2011 12:03 am

    This makes me want to cry.

    Like

  33. September 14, 2011 10:47 pm

    “It would be very interesting to see the separate agreement that TT International, LLC held (if there is one) but perhaps it would be even more interesting to know how and when an agreement with TT International, LLC came about.”

    BG, I hear that TT International was set up just before the deal between Michael and AEG. If there is any agreement with TT I would be very much willing to see it, so if it ever surfaces please send it here. Only I doubt it will.

    “Tohme was confident in saying, “I’m still in charge of Michael Jackson’s business unless otherwise I am informed not to do so” despite being fired. Didn’t he get that letter? Who was Tohme waiting to be informed by? Was there another party involved in the TT International, LLC agreement? AEG? Colony Capital? Someone else?”

    Without the agreement it is difficult to say. But if Tohme’s name was mentioned in the agreement with AEG and AEG was still in a deal with Michael Jackson, Tohme was naturally staying in the picture. The problem is that Tohme was not named as an official representative of Michael – the capacity in which he was working was not named there at all! He was a nobody, but the agreement said that he was to be paid money and only implied that Tohme was part of Michael’s management. For that so-called AEG contract Tohme was just “Dr. Tohme” to whom all correspondence was to be sent and when you don’t know who he is it is difficult to fire him. Now they might as well say that he was some kind of an “independent party” or a “middleman”.

    Another aspect of this is that Tohme had never been in Michael’s employment (as far as I know) – he always claimed that he was “just helping” and without a salary too. But if someone is “just helping” and is not really employed it is impossible to fire him. This can be very well the reason why he still stuck to Michael despite his will. If Michael had gone public and said that Tohme had nothing to do with him any longer – then he could have probably stayed away from him. Probably.

    But Michael either didn’t think it necessary to do so, or – which is much more likely – was not allowed to do that by his contract with AEG. There is a point in the contract saying something like “the Artist is to participate only in the mutually approved publicity” . He took an obligation on himself not to create any negative publicitiy. Calling a press-conference and saying that he was firing the man who had negotiated those concerts with AEG would be exactly such a case.

    You can’t imagine how many answers to various questions there are in the contract. I hope to make another post about it because there is much more to say about it.

    Frank Dileo mentioned that four lawyers read the AEG “contract” to Michael.

    Oh, how much we are missing Dileo! Each of his statements is precious to us. So there were four lawyers? Interesting. One of them was surely Dennis Hawk, the lawyer for Tohme (he is mentioned in the contract as someone to whom all copies of correspondence were to be sent). Another one was evidently Kathy A.Jorrie, who is mentioned in the contract as someone on AEG’s side, and this leaves us with two more whose names we do not know. But it is clear that no Michael’s lawyer were present – he said it himself: “I don’t know what my deal is. I talk to Tohme and he talks to my lawyers and my accountants. I don’t talk to them”.

    Neither Frank Dileo nor the Estate has said anything negative about AEG or the Michael/AEG agreement. In fact, it’s been the opposite.

    I don’t know why they never said that. Probably strategic interests. The man is gone and the debts are to be returned. At the moment their priority is money. When all the debts are paid and the financial situation is stable the picture may change. It isn’t the right time. But this is my supposition only.

    To my knowledge, the document has not been investigated or challenged by anyone except Joe and Katherine Jackson, Leonard Rowe and concerned fans; no one else – not the media, not the estate, not any lawyer except those retained by Katherine and Joe. If the agreement is, in fact, ‘not normal’ why would this be?

    As I say correct timing is everything. On the other hand AEG (or rather its owner Philip Anschutz) is so powerful that it is quite probable that people don’t want to get involved in this. Philip Anschutz has huge contacts with the media and even owns some newspapers, as far as I know. I’ve seen an article wondering if “Michael Jackson can have justice in a town owned by AEG?”, but unfortunately can’t find this article any longer.

    “profits earned by working in partnership with AEG following Michael’s death benefit the estate and so Michael’s beneficiaries”

    At the moment the most important thing is to repay the debts and stabilize the financial situation. Michael’s financial success would be his best vindication in a world which is still very much driven by money. However when Michael’s childeren are very well provided for, i would very much expect Michael’s lawyers to look into the contract with AEG. On the other hand I am not sure they have the right to dispute the contract and point at some illegal aspects of it – I think it should be done by the family, which they are actually doing.

    But Katherine’s claim is not as well-grounded as it should be. It seems to me that Katherine was more guided by some emotional aspects than real facts (which are scattered all over AEG’s contract and if she had looked she could have found much more). Probably her lawyers did not do the necessary investigation. She needs a really good lawyer, otherwise I fear she might lose. Joe Jackson’s suit in its amended part is much better in my opinion, though it doesn’t cover the whole things either.

    “is it that the legality of the agreement is such that it really cannot be disputed (perhaps because ‘the Artist’ is not here to dispute it) and it is therefore considered pointless by some to call AEG into question over it?”

    I really don’t know the legal aspects arising from this contract as I am no lawyer. All I know is contract making because I was involved in it for many years. Any person who is more or less familiar with how a contract is made will find numerous deviations from normal practice here. And if the signature is found forged there will be simply nothing to discuss. What the family should do by all means is a graphology test.

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  34. September 14, 2011 7:37 pm

    Thank you for all the work and time that must have been spent looking into this letter of intent/agreement/contract.

    It would be very interesting to see the separate agreement that TT International, LLC held (if there is one) but perhaps it would be even more interesting to know how and when an agreement with TT International, LLC came about. Tohme was confident in saying, “I’m still in charge of Michael Jackson’s business unless otherwise I am informed not to do so” despite being fired. Didn’t he get that letter? Who was Tohme waiting to be informed by? Was there another party involved in the TT International, LLC agreement? AEG? Colony Capital? Someone else?

    It is more than a little odd that the letter firing Tohme in May did not give an alternative contact – a name of a person who was to represent Michael and his companies in place of Tohme, and no other letter surfaced in the almost two-month period after that appointing anyone in Tohme’s place. Was Tohme’s name not formally removed from Michael’s companies following the letter? Frank Dileo mentioned that four lawyers read the AEG “contract” to Michael. Weren’t any of these four lawyers available or able to file the necessary documentation removing Tohme from Michael’s businesses on Michael’s behalf? Is this why Tohme remained involved?

    Neither Frank Dileo nor the Estate has said anything negative about AEG or the Michael/AEG agreement. In fact, it’s been the opposite. The AEG agreement wasn’t changed prior to June 25, 2009. To my knowledge, the document has not been investigated or challenged by anyone except Joe and Katherine Jackson, Leonard Rowe and concerned fans; no one else – not the media, not the estate, not any lawyer except those retained by Katherine and Joe. If the agreement is, in fact, ‘not normal’ why would this be? Is it just a case of ignoring any discrepancies, ‘smoothing the waters’ and working out the best all round deal for everyone concerned (AEG included) now that Michael is not here? Or is it because any unfairness in the document or the operation of it, which may have caused stress or hardship while Michael was alive is no longer relevant because, in the end, profits earned by working in partnership with AEG following Michael’s death benefit the estate and so Michael’s beneficiaries? Or is it that the legality of the agreement is such that it really cannot be disputed (perhaps because ‘the Artist’ is not here to dispute it) and it is therefore considered pointless by some to call AEG into question over it? Although Katherine, Joe and their attorneys don’t seem to think so.

    Like

  35. Chris permalink
    September 14, 2011 12:09 pm

    Michael always hooped his H’s yet none of these have it. look on google pictures of his signature they are all hooped other than 1 i think.

    Like

Trackbacks

  1. The story of MICHAEL JACKSON, TOHME TOHME and AEG LIVE. Part 1 | Vindicating Michael
  2. Some dates and names: review 1 « Nonlocal Universe
  3. The AEG contract with Michael Jackson « Vindicating Michael
  4. JOHN BRANCA as a villain, AEG as an angel and KAREN FAYE as a business adviser in Michael Jackson’s matters « Vindicating Michael

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