MJ Estate Accounting Thread (Reference Only)

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First Accounting:
If you cannot see the document below, click here to see it.



 
Second Accounting:

ivy;3680028 said:
As promised before with Windy09 's tremendous help now we have the MJ Estate second accounting in it's 96 pages of glory (omitted persons given notice section)

The link to document is : http://www.scribd.com/doc/101284813/MJ-Estate-Second-Accounting

I will also embed it to the end of this post

My brief summary follows but please keep in mind that I'm not an accountant. We actually welcome discussion and information from knowledgeable parties about accounting

Summary:

Gross earnings as of May 31, 2012 is $475 Million.

Breakdown of $475 Million as follows
- $310 Million gross earnings between June 2009 – October 2010 (first accounting period)
- $134 Million gross earnings between November 2010 – December 2011. (second accounting period)
- $30 Million gross earnings between January 2012 – May 2012.

Alll debt is current

Hayvenhurst mortgage paid

$65 Million of Mijac debt is paid and Estate expect to pay it in full by the end of 2012.

Estate is not in a position to be closed yet, Executors asking for administration of the Estate to be extended for one more year.

The only sale happened was some tangible property sold to Richard LaPointe per the settlement agreement in Julien’s Auction lawsuit. Schedule H lists all the items LaPointe got per settlement agreement.

Hayvenhurst is stated that “it will be maintained long term for the benefit of the family”. Renovations are still ongoing.

Katherine is asking for onetime payment of $205,401 to cover her professional fees occurred in 2011. Katherine is also asking for additional $34,700 per month to pay for her accountant and lawyers as well as to cover the expenses of family house in Gary Indiana and a residence in Las Vegas. Estate is asking the judge to allow this onetime payment and monthly increase.

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.

Estate’s main assets are 50% share in Sony/ ATV, 100% share in Mijac, Michael’s name and likeliness, Neverland and trademarks.

MJ Business activities consists of 2 Cirque shows (second resident show is scheduled to open in June 2013), Ubisoft MJ Experience game, multiple album deal with Sony, commercial endorsements and a possible film and documentary about Michael Jackson.

At the time of his death Michael was facing at least 6 lawsuits. Executors have been part of at least 15 lawsuits. 4 of them are still active, the rest have been resolved favorably for the Estate. Estate has also faced 65 creditor claims.

Estate is also employing multiple law firms around the world to protect Michael’s copyrights and trademarks. Second accounting lists 19 law firms (all around the world) and over $13.5 million in legal costs.

Schedule A (beginning) and Schedule I (end) shows the list of tangible property and business interest of Michael and now MJ Estate

In addition to 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 I shows by the end of December 2011, personal tangible property of Michael valued at $13 Million and MJ Estate cash (or equivalent) at $19 Million.

Schedule D shows net income from trade or business during second accounting period (Nov 2010- Dec 2011) at $106,734,448.

Payments to Katherine and MJ’s kids are as follows (Nov 2010- Dec 2011)

Kids allowance $2,139,194
Katherine allowance $470,814
Calabasas residence expenses $436,187
Condo payments $15,569
Hayvenhurst improvements $73,962
Taxes on properties $144,605
Insurance (health and property) $106,033
House employees $658,915
Katherine lawyer fees $233,911
Guardian ad litem $ 54,478
Utilities costs $53,211
Security $654,414
Repair & Maintenance $194,127

Total $5,205,516

Estate has also given multiple loans to Katherine

Loan 1 to Katherine $235,000
Loan 2 to Katherne $250,000
Loan 3 to Katherine $75,000
Loan 4 to Katherine $6,000,000 (for Katherine's debt to Segye Times)

Total loans to Katherine $ 6,560,000

Total paid to Katherine and kids equal $ 11,765,516 ( $5,205,516 + $ 6,560,000)

Estate paid $50,862,363 in taxes and licenses.

Estate has an archiving project ongoing that they paid $789,450. They paid over 1 million dollars for storage of Michael’s property. Estate employees were paid $443,640. Estate paid $442,774 for public relations.

Total Co-executive & creative director compensation is $5,214, 933. The companies’ tables also show a $2,971,982 payment as Co-executive and creative director compensation, however I do not know if this is included in the Schedule G compensation of $5,214,933 or if it is a separate payment.

If you cannot see the document below, click here to view it.

<iframe src="http://www.scribd.com/embeds/101284813/content?start_page=1" width="850" height="600"></iframe>
 
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Third Accounting:

ivy;3962798 said:
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&#8217;s main assets are 50% share in Sony/ ATV, 100% share in Mijac, Michael&#8217;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 &#8211; the reported trust company for the kids &#8211; 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&#8217;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&#8217;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&#8217;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&#8217;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 &#8220;Broken Heart Stone&#8221; 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&#8217; tables doesn&#8217;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&#8217;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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If you cannot see the document below, click here to view it.

<iframe src="http://www.scribd.com/embeds/208269032/content?start_page=1" width="850" height="600"></iframe>​
 
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Media stories about MJ Estate Third Accounting:

ivy;3962799 said:
At the time of Michael Jackson&#8216;s death in 2009, the singer was $500 million in debt, but court documents reveal that three years later, the estate had generated more than $600 million and his mother Katherine had received $1.3 million in her yearly allowance and a $6 million loan.

Court documents &#8212; filed by estate executors and obtained exclusively by RadarOnline.com &#8211; expose the financial windfall that has been generated since his tragic death and provides insights as to the cost of raising the King of Pop&#8217;s three kids.

In 2012, according to financial records reviewed by Radar, the estate paid $564,301.57 for bodyguards and security for Katherine and her three grandchildren, Prince Michael, Paris andBlanket. (Radar has chosen not to disclose the names of the companies, due to privacy concerns.)

The matriarch of the Jackson family, 83, was paid $1.386 million in allowance from her late son&#8217;s estate in 2012 and was also loaned more than $6 million from the estate, which also doled out more than $3 million in allowance to Michael&#8217;s three children for education and $10,000 in orthodontics.

The family has been living in a $26,000 rental house in Calabasas, while the Hayvenhurst house continues to be renovated.

The monthly electric bill for the Calabasas mansion is $2,500 and the cost for living (including utilities) in the rental for in 2012 was $418,013.69.

Renovations for the Encino mansion were $154,323.53 in 2012, including a $12,000 home theater renovation project, $3,225 studio repair and pond keeper services for $814.43.

Even though no one was living at the house in 2012, utilities including phone, gas, and electricity totaled $35,842.05. Storage and moving fees for 2012 added up to a whopping $806,872.52.

The co-executors, John Branca and John McClain, under the law in California, are required to submit detailed financial records of the execution of Michael Jackson&#8217;s estate while it&#8217;s still in probate court.

The executors reveal that &#8220;they have made significant progress in resolving creditors&#8217; claims and pending litigation reducing the estate&#8217;s debt, and solidifying and establishing the MJJ Business as a lucrative and powerful entity in the entertainment industry, the estate is not yet in the condition to be closed.

&#8220;The executors have not yet resolved all of the creditors&#8217; claims. There is litigation pending and there is an ongoing tax audit. Therefore, executors request that the time for administration of the estate be extended for one year after the court enters its&#8217; order settling the account.&#8221;

At the time of Michael&#8217;s death, he was named in more than half a dozen lawsuits, and 65 creditors&#8217; claims were filed after he died.

There are &#8220;currently seven active litigation matters in the United States which the executors and their legal team are defending. All other litigation has been resolved favorably for the estate either by court disposition or settlement for less than the amount demanded,&#8221; the court docs state.

http://radaronline.com/exclusives/2014/02/michael-jackson-money-estate-worth-million-katherine/
 
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