MJ Estate Third Accounting - Document & Summary & Discussion

[qbee]

<!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:HyphenationZone>21</w:HyphenationZone> <woNotOptimizeForBrowser/> </w:WordDocument> </xml><![endif-->Regarding Nile Acquisition LLC (Sony/ATV-EMI deal)

Attached are selected notes from Sony Corporation financial statements for fiscal year ended March 31, 2014. They relate to Michael&#8217;s estate, which is partner for two entities : Sony/ATV (the estate&#8217;s main asset), and Nile Acquisition LLC (purchase of the EMI publishing catalogue). I added some details that I guess (in blue).

Some of you will perhaps be able to explain a fact that remains mysterious to me. The estate account current for 2012 mentions an ending value of $50,208.00 for the investment in Nile Acquisition LLC (schedule I, ref 51), when it should be MILLIONS, considering that it has to be a 25.1% interest (Sony&#8217;s being 74.9% as described in note 5, for $320 millions, the estate&#8217;s 25,1% should have a value of $107 millions). Anyone has a clue ?

Sony invested (Paid) 320 Million. That is what EMI was purchased for and not the yearly return of its value. They have to deduct what was earned from what was paid plus fees for managing maintaining the catolog etc. so your 320 MIl is the wrong value to use for the calculation of what the Estates current value is in EMI. Other than that I'm not a an accountant .. I think there is another investor besides Sony and the Estate as part of the investor group formed DH Publishing, L.P. .. Maybe Ivy can explain it better.

 

[Juju]

Re: Regarding Nile Acquisition LLC (Sony/ATV-EMI deal)

Sony invested (Paid) 320 Million. That is what EMI was purchased for and not the yearly return of its value. They have to deduct what was earned from what was paid plus fees for managing maintaining the catolog etc. so your 320 MIl is the wrong value to use for the calculation of what the Estates current value is in EMI. Other than that I'm not a an accountant .. I think there is another investor besides Sony and the Estate as part of the investor group formed DH Publishing, L.P. .. Maybe Ivy can explain it better.

In a balance sheet, most assets are accounted for at cost. That's why Sony valued their share for what they have paid. The Estate should have done so or I missed something.

 

[ivy]

posted here as it is related to approval of Estate 3rd accounting

Jackson Estate Pays $2M To Katten, Venable, Others
Share us on: By Daniel Siegal

Law360, Los Angeles (August 12, 2014, 5:36 PM ET) -- A California judge on Tuesday approved Michael Jackson's estate's disbursement of nearly $2 million to Katten Muchin Rosenman LLP, Venable LLP and other firms for legal work in 2013, including suing a website for stealing Jackson's intellectual property and negotiating a Cirque du Soleil show based on Jackson's music.

During a hearing on the estate's executors petition for settlement of the estate's third account current, Los Angeles Superior Court Judge Mitchell L. Beckloff said he would approve the fee requests for Katten Muchin, Venable, Greines Martin Stein & Richland LL, Arnold & Porter LLP and Hochman Salkin Rettig Toscher & Perez PC, which totaled roughly $1.9 million for work done from Jan. 1, 2013, to Oct. 31, 2013.

The largest fee request is Katten Muchin's, which will receive more than $1.1 million. The lion's share of that work is the estate's ongoing litigation to void agreements Jackson's former manager, Tohme R. Tohme, obtained before the pop star's death, which accounted for $917,919 of the total fees.

That suit, filed in February 2012, alleged Tohme persuaded Jackson to sign a series of deals that guaranteed compensation and rights far beyond the norm of a personal manager. Jackson's executors John Branca and John McClain asked the court to declare these agreements void and to force Tohme to account for the money and property that he took from Jackson when he was the pop icon's personal manager from early 2008 until a few months before Jackson's June 25, 2009, death.

Among these agreements was a document guaranteeing Tohme a fee of $35,000 per month plus expenses, according to the suit. In addition, the deal provided Tohme with 15 percent of all gross compensation received by Jackson for his services in the entertainment industry, including live performances, merchandising and recorded as well as live telecasts, the suit said.

Katten also represented the estate in its litigation against website Michaeljacksonsecretvault.com, which was using a host of Jackson's intellectual property assets, including copyrights and trademarks, and in it successful defense in arbitration of a creditor's claim for $6.7M against the estate.

Venable, meanwhile, requested $87,165 for its work as lead counsel in the estate's negotiations with Cirque du Soleil to develop and perform a show based on Jackson's life and music. Venable also represented the estate in general corporate matters and tax planning, to the tune of roughly $176,000.

Arnold & Porter represented the estate in brokering deals for several tribute shows, including &#8220;Thriller Live!&#8221; which toured Europe and is shown in London, the &#8220;Forever King of Pop&#8221; show in Spain, and the &#8220;This Is It&#8221; show in Brazil, as well as in suing the organizers of an unauthorized tribute show in England. The firm requested roughly £173,000 ($291,000).

Hochman Salkin requested $163,328 for legal services relating to the estate's tax return rendered for the period from Oct. 25, 2012, to Oct. 31, 2013.

On Tuesday, Judge Beckloff said the pop star's mother, Katherine Esther Jackson had a forensic accountant look at the law firms' accounting, and the accountant, &#8220;was satisfied.&#8221;

The estate is represented by Howard Weitzman of Kinsella Weitzman Iser Kump & Aldisert LLP, Zia F. Modabber of Katten Muchin Rosenman LLP and Jeryll S. Cohen of Hoffman Sabban & Watenmaker APC.

Jackson's minor children are represented by guardian ad litem Margaret G. Lodise of Sacks Glazier Franklin & Lodise LLP.

Katherine Esther Jackson is represented by Sandra L. Ribera of Ribera Law Firm APC and Perry R. Sanders Jr. of Sanders Law Firm LLC.

The case is In the Matter of the Estate of Michael Joseph Jackson, case number BP117321 in the Superior Court of the State of California, County of Los Angeles.

--Additional reporting by Carolina Bolado. Editing by Chris Yates.

http://www.law360.com/articles/566626/jackson-estate-pays-2m-to-katten-venable-others

 

[Aquarius]

Is this the tribute Katherine & fam orchestrated?

Arnold & Porter represented the estate in brokering deals for several tribute shows, including &#8220;Thriller Live!&#8221; which toured Europe and is shown in London, the &#8220;Forever King of Pop&#8221; show in Spain, and the &#8220;This Is It&#8221; show in Brazil, as well as in suing the organizers of an unauthorized tribute show in England. The firm requested roughly £173,000 ($291,000).

In reference to Tohme, what about the paintings?

 

[Bubs]

"The largest fee request is Katten Muchin's, which will receive more than $1.1 million. The lion's share of that work is the estate's ongoing litigation to void agreements Jackson's former manager, Tohme R. Tohme, obtained before the pop star's death, which accounted for $917,919 of the total fees."

Bill for lawyers work regarding Tohme should be sent to Jermaine.

"Among these agreements was a document guaranteeing Tohme a fee of $35,000 per month plus expenses, according to the suit. In addition, the deal provided Tohme with 15 percent of all gross compensation received by Jackson for his services in the entertainment industry, including live performances, merchandising and recorded as well as live telecasts, the suit said"

Tohme is full blown crook in every sense of that worduke:
No wonder he went around saying he was Michael's non-paid manager as he set himself to get his payments different way. In other words, he would have gotten 15% of everything Michael did, and that would have been a lot!

"Katten also represented the estate in its litigation against website Michaeljacksonsecretvault.com, which was using a host of Jackson's intellectual property assets, including copyrights and trademarks, and in it successful defense in arbitration of a creditor's claim for $6.7M against the estate."

That is Vaccaro and Mann case, so the bill should be sent to KJ or taken from her share.

"On Tuesday, Judge Beckloff said the pop star's mother, Katherine Esther Jackson had a forensic accountant look at the law firms' accounting, and the accountant, “was satisfied.”"

I bet Randy was disappointed as he was hoping executors being crooked so he could step in.

 

[Bubs]

Ivy, I have a question about Michael's art collection that Tohme gifted to Brett-Livingstone Strong.
Now that the estate cannot stop CC from selling Neverland, and CC got NL only because Tohme was the crook between MJ and CC negotiations. Does that mean that the estate cannot stop the sale if Brett-Livingstone Strong decides to sell the art collection?

 

[elusive moonwalker]

the show was in wales. so dunno if its something else or just a typical uneducated media

Is this the tribute Katherine & fam orchestrated?

Arnold & Porter represented the estate in brokering deals for several tribute shows, including &#8220;Thriller Live!&#8221; which toured Europe and is shown in London, the &#8220;Forever King of Pop&#8221; show in Spain, and the &#8220;This Is It&#8221; show in Brazil, as well as in suing the organizers of an unauthorized tribute show in England. The firm requested roughly £173,000 ($291,000).

In reference to Tohme, what about the paintings?

 

[#MJforever57]

Ivy, I have a question about Michael's art collection that Tohme gifted to Brett-Livingstone Strong.
Now that the estate cannot stop CC from selling Neverland, and CC got NL only because Tohme was the crook between MJ and CC negotiations. Does that mean that the estate cannot stop the sale if Brett-Livingstone Strong decides to sell the art collection?

Good question.

Now i see the clear picture with Tohme what a crock.

 

[Prince Of Pop]

If Thome is the one who concocted the whole Neverland/CC deal, and the estate can prove the guy is crooked, can't they go to court and get the original deal thrown out, and get total ownership of neverland back in the control of the MJ estate?