Thanks to our members & friends at LA we were able to get the MJ Estate Third Accounting.
You can find my summary of the third accounting below. Document is linked below and embed it to the end of this post.
Link to the MJ Estate Third Accounting document : http://www.scribd.com/doc/208269032/MJ-Estate-Third-Accounting
For reference link to the discussion of MJ Estate Second accounting: http://www.mjjcommunity.com/forum/t...ccounting-Document-amp-Summary-amp-Discussion
Summary of MJ Estate Third Accounting
Gross earnings as of December 31, 2013 are more than $600 Million. According to second accounting gross earnings as of May 31, 2012 was $475 Million. This means Estate earned $125 Million (gross) between June 2012 and December 2013.
Third accounting period covers January 1, 2012 to December 31, 2012.
- All debt is current
- Hayvenhurst mortgage paid
- Mijac debt is fully paid.
- No property was sold during the third accounting period.
Estate is not in a position to be closed yet, Executors asking for administration of the Estate to be extended for one more year.
Same as second accounting: 12 Inventory value appraisals are done showing property valued at $50,677,002. Estate says additional personal property was discovered in Las Vegas and at Rock n Roll and Grammy Museum which is in total believed to be $6,700,000.
Same as second accounting: Estate’s main assets are 50% share in Sony/ ATV, 100% share in Mijac, Michael’s name and likeliness, Neverland and trademarks.
Same as second accounting: MJ Business activities consists of 2 Cirque shows, Ubisoft MJ Experience game, multiple album deal with Sony, commercial endorsements and a possible film and documentary about Michael Jackson.
Third accounting adds a Broadway play as possible future business activities.
7 lawsuits are still active, the rest have been resolved favorably for the Estate. Estate has significant legal expenses. (see addition at the end of summary for details)
MJJ Legacy Inc, MJJ Productions LLC, MJJ Kingdom LLC had been dissolved during second accounting period. During third accounting Estate have dissolved nine inactive entities of 99 Spanish Gate Drive LLC, Branson Media Group LLC, History Tours Inc, History Tours II Inc, Invincible Tours Inc, Monte Cristo Employment LLC, Nation Comics, Triumph Multimedia Corp and TTC Touring Corp.
PPB LLC – the reported trust company for the kids – is listed as a new entity on the third accounting.
Schedule A (beginning) and Schedule I (end) shows the list of tangible property and business interest of Michael and now MJ Estate. Similar to second accounting these properties include: Hayvenhurst (valued at $4.1 M) and a condo (valued at $315 K), Michael (and now his Estate) has 87.5% undivided membership in Neverland.
Schedule D shows net income from trade or business during third accounting period (Jan 2012- Dec 2012) at $54,015,433. (Gross income is $77,642,855)
Payments to Katherine and MJ’s kids are as follows (Jan 2012 - Dec 2012)
Kids allowance $3,064,009
Katherine allowance $1,386,548
Calabasas residence expenses $415,014
Other expenses $54,281
Insurance (health and property) $89,356
House employees $539,449
KJ Guardianship lawyer fees $ 102,588
Utilities costs $35,842
Security $564,302
Repair & Maintenance $154,325
Total $6,409,814
There haven’t been any new loans given to Katherine Jackson during the third accounting period. Total loans from the first and second accounting period were $6,560,000. Katherine Jackson paid $ 6,638 interest and $193,362 principal payment on these loans from a consulting fee she was paid by the Estate (see below for details).
Note: Estate states from time to time they adjust (meaning increase) these allowances. The most recent 12 month (Jan 2012 - Dec 2012) allowance numbers are higher compared to the 14 month (Nov 2010-Dec 2011) second accounting period in which kids allowance was $2,139,194 and Katherine allowance was $470,814.
Estate paid $13,155,178 in taxes and licenses.
Estate paid $170,609 for appraisals. Estate has an archiving project ongoing that they paid $146,293. They paid $806,873 for storage of Michael’s property. Estate employees were paid $126,654. Estate paid $480,500 for public relations.
Estate paid several consulting fees. They paid $2,300,000 to Katherine Jackson (paid to Perry Sanders and originally $2.5 Million but reduced by $200,000 to pay back loan and interest as mentioned above). $200,000 to Linda Dileo and $6,033 per month to Jackie Jackson.
Grauman’s Chinese Theater event cost MJ Estate $436,223.
Estate has paid $22,150,000 on loan principal payments.
Estate has earned $4,345,971 from royalties.
Replacement “Broken Heart Stone” is listed as a tangible property and valued at $50,000.
Total Co-executive & creative director compensation is $4,454,011. In the third accounting the companies’ tables doesn’t show any additional co-executive compensation.
Tidbits:
- Allowances for the kids include expenses such as tuition, vacations, parties, orthodontics and payment on a gas card as well as the regular allowance. Education related expenses are around $148,310.
- Improvements to Hayvenhurst include: entertainment room renovations, wall repair, pipe leak repair, theater renderings, reupholster theater seats, projection booth, and snack bar for lobby.
- Michael Jackson Estate’s tribute ad to Whitney Houston cost them $15,782
Edited to add
- At the end of summary of account it is stated that gross receipts between January 1 2013 and November 30 2013 is $60,815,512.
- There's no loan /mortgage payment for Lindley condo in the third accounting. Given that second accounting showed mortgage payments in the amount of $387,785 for Lindley, it is safe to assume that the Lindley condo mortgage debt is also paid in full.
- Estate has paid $74,372 for Domain Search and Renewal fees.
- Total legal fees are hard to calculate as the payments for them happen on account and before the Estate accounting gets filed. For 2012 legal bills show $95,392 for Litigation related expenses and $3,901,065 for legal expenses. For January 2013 to October 2013 the legal expenses are $4,992,839 plus legal fees at United Kingdom, Germany and Japan (which I did not convert to US dollars and aren't added to the total amount).
- Estate paid a law firm for services in UK in "Thriller Live" matter
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[scribd]208269032[/scribd]
You can find my summary of the third accounting below. Document is linked below and embed it to the end of this post.
Link to the MJ Estate Third Accounting document : http://www.scribd.com/doc/208269032/MJ-Estate-Third-Accounting
For reference link to the discussion of MJ Estate Second accounting: http://www.mjjcommunity.com/forum/t...ccounting-Document-amp-Summary-amp-Discussion
Summary of MJ Estate Third Accounting
Gross earnings as of December 31, 2013 are more than $600 Million. According to second accounting gross earnings as of May 31, 2012 was $475 Million. This means Estate earned $125 Million (gross) between June 2012 and December 2013.
Third accounting period covers January 1, 2012 to December 31, 2012.
- All debt is current
- Hayvenhurst mortgage paid
- Mijac debt is fully paid.
- No property was sold during the third accounting period.
Estate is not in a position to be closed yet, Executors asking for administration of the Estate to be extended for one more year.
Same as second accounting: 12 Inventory value appraisals are done showing property valued at $50,677,002. Estate says additional personal property was discovered in Las Vegas and at Rock n Roll and Grammy Museum which is in total believed to be $6,700,000.
Same as second accounting: Estate’s main assets are 50% share in Sony/ ATV, 100% share in Mijac, Michael’s name and likeliness, Neverland and trademarks.
Same as second accounting: MJ Business activities consists of 2 Cirque shows, Ubisoft MJ Experience game, multiple album deal with Sony, commercial endorsements and a possible film and documentary about Michael Jackson.
Third accounting adds a Broadway play as possible future business activities.
7 lawsuits are still active, the rest have been resolved favorably for the Estate. Estate has significant legal expenses. (see addition at the end of summary for details)
MJJ Legacy Inc, MJJ Productions LLC, MJJ Kingdom LLC had been dissolved during second accounting period. During third accounting Estate have dissolved nine inactive entities of 99 Spanish Gate Drive LLC, Branson Media Group LLC, History Tours Inc, History Tours II Inc, Invincible Tours Inc, Monte Cristo Employment LLC, Nation Comics, Triumph Multimedia Corp and TTC Touring Corp.
PPB LLC – the reported trust company for the kids – is listed as a new entity on the third accounting.
Schedule A (beginning) and Schedule I (end) shows the list of tangible property and business interest of Michael and now MJ Estate. Similar to second accounting these properties include: Hayvenhurst (valued at $4.1 M) and a condo (valued at $315 K), Michael (and now his Estate) has 87.5% undivided membership in Neverland.
Schedule D shows net income from trade or business during third accounting period (Jan 2012- Dec 2012) at $54,015,433. (Gross income is $77,642,855)
Payments to Katherine and MJ’s kids are as follows (Jan 2012 - Dec 2012)
Kids allowance $3,064,009
Katherine allowance $1,386,548
Calabasas residence expenses $415,014
Other expenses $54,281
Insurance (health and property) $89,356
House employees $539,449
KJ Guardianship lawyer fees $ 102,588
Utilities costs $35,842
Security $564,302
Repair & Maintenance $154,325
Total $6,409,814
There haven’t been any new loans given to Katherine Jackson during the third accounting period. Total loans from the first and second accounting period were $6,560,000. Katherine Jackson paid $ 6,638 interest and $193,362 principal payment on these loans from a consulting fee she was paid by the Estate (see below for details).
Note: Estate states from time to time they adjust (meaning increase) these allowances. The most recent 12 month (Jan 2012 - Dec 2012) allowance numbers are higher compared to the 14 month (Nov 2010-Dec 2011) second accounting period in which kids allowance was $2,139,194 and Katherine allowance was $470,814.
Estate paid $13,155,178 in taxes and licenses.
Estate paid $170,609 for appraisals. Estate has an archiving project ongoing that they paid $146,293. They paid $806,873 for storage of Michael’s property. Estate employees were paid $126,654. Estate paid $480,500 for public relations.
Estate paid several consulting fees. They paid $2,300,000 to Katherine Jackson (paid to Perry Sanders and originally $2.5 Million but reduced by $200,000 to pay back loan and interest as mentioned above). $200,000 to Linda Dileo and $6,033 per month to Jackie Jackson.
Grauman’s Chinese Theater event cost MJ Estate $436,223.
Estate has paid $22,150,000 on loan principal payments.
Estate has earned $4,345,971 from royalties.
Replacement “Broken Heart Stone” is listed as a tangible property and valued at $50,000.
Total Co-executive & creative director compensation is $4,454,011. In the third accounting the companies’ tables doesn’t show any additional co-executive compensation.
Tidbits:
- Allowances for the kids include expenses such as tuition, vacations, parties, orthodontics and payment on a gas card as well as the regular allowance. Education related expenses are around $148,310.
- Improvements to Hayvenhurst include: entertainment room renovations, wall repair, pipe leak repair, theater renderings, reupholster theater seats, projection booth, and snack bar for lobby.
- Michael Jackson Estate’s tribute ad to Whitney Houston cost them $15,782
Edited to add
- At the end of summary of account it is stated that gross receipts between January 1 2013 and November 30 2013 is $60,815,512.
- There's no loan /mortgage payment for Lindley condo in the third accounting. Given that second accounting showed mortgage payments in the amount of $387,785 for Lindley, it is safe to assume that the Lindley condo mortgage debt is also paid in full.
- Estate has paid $74,372 for Domain Search and Renewal fees.
- Total legal fees are hard to calculate as the payments for them happen on account and before the Estate accounting gets filed. For 2012 legal bills show $95,392 for Litigation related expenses and $3,901,065 for legal expenses. For January 2013 to October 2013 the legal expenses are $4,992,839 plus legal fees at United Kingdom, Germany and Japan (which I did not convert to US dollars and aren't added to the total amount).
- Estate paid a law firm for services in UK in "Thriller Live" matter
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[scribd]208269032[/scribd]
