Judge Approves Pay Bump for Jackson Estate Execs

[CherubimII]

Judge Approves Pay Bump for Jackson Estate Execs

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LOS ANGELES (AP) &#8212; A judge approved a pay bump Monday for the executors of Michael Jackson's estate who turned the debt-ridden singer's portfolio into a business that has earned hundreds of millions of dollars since his death.

Superior Court Judge Mitchell Beckloff allowed attorney John Branca and music executive John McClain to bill the estate separately for their professional services, which include entertainment-related legal counsel and use of a recording studio founded by Marvin Gaye.

Attorneys for Branca and McClain sought the change, saying the executors spend an increasing amount of time on Jackson's estate and have been paying legal expenses to Branca's firm out of their share of the earnings.

The men agreed in February 2010 to accept 10 percent of the gross entertainment-related earnings of the estate, minus money generated by Jackson's 50 percent interest in the Sony-ATV music catalog and earnings from "This Is It," a film compiled from the singer's final rehearsals.
The exclusions are huge revenue generators for the estate &#8212; the Sony-ATV catalog includes publishing rights to music by The Beatles, Elvis Presley, Bob Dylan and other stars. The executors also have been excluded an interest in Jackson's music, which has sold briskly since his death June 25 at age 50.

Since then, the estate has earned more than $310 million.
Branca and McClain have been earning closer to 7 percent of the estate's entertainment-related earnings, as the estate has become a "massive entertainment business enterprise," court filings state.

Branca and McClain said they are spending more time developing Jackson projects than anticipated, including music, video games and a touring Cirque-du-Soleil show that will eventually become a Las Vegas fixture.

Under the deal approved Monday, Branca's firm Ziffren Brittenham LLP will now receive 3 percent of entertainment-related income generated by Jackson's estate.
Estate attorney Howard Weitzman said the firm was performing work that would cost more than $2 million a year if it was being handled by another firm, and court filings state that a traditional entertainment estate would include additional managers and attorneys who would receive up to 30 percent of the estate's overall revenue.

There was no estimate for how much McClain's billings may be. He bought and restored Gaye's former Los Angeles studio in 1997, christening it Marvin's Room, and Jackson and other top singers have recorded music there.
The estate benefits Jackson's mother, Katherine, and the singer's three children, Prince, Paris and Blanket. They received an initial $30 million payment on the estate's proceeds earlier this year.

Attorneys for Katherine Jackson and the children had no objection to augmenting the compensation for Branca and McClain. Meg Lodise, who represents the children's interest, said, "It is quite clear that what they're proposing is going to be fair to the estate."

Weitzman told Beckloff that the estate has recently resolved creditors' claims worth at least $11 million and is working to resolve any other valid outstanding debts. Jackson died with an estimated $400 million in debts, but renewed interest in his music and career have fattened the estate's accounts, which listed $90 million in cash on hand in a September court filing.

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[bluesky]

ANTHONY McCARTNEY, AP Entertainment Writer

Published 11:46 a.m., Monday, December 19, 2011

• 
• 
  FILE - In this April 27, 2005 file photo, Michael Jackson arrives at the Santa Barbara County courthouse in Santa Maria, Calif. A judge on Monday, Dec. 19, 2011, approved a request by the two men running the late pop star’s estate to receive additional compensation for their professional services. Photo: Michael Mariant / AP​

LOS ANGELES (AP) — A judge approved a pay bump Monday for the executors of Michael Jackson's estate who turned the debt-ridden singer's portfolio into a business that has earned hundreds of millions of dollars since his death.

Superior Court Judge Mitchell Beckloff allowed attorney John Branca and music executive John McClain to bill the estate separately for their professional services, which include entertainment-related legal counsel and use of a recording studio founded by Marvin Gaye.

Attorneys for Branca and McClain sought the change, saying the executors spend an increasing amount of time on Jackson's estate and have been paying legal expenses to Branca's firm out of their share of the earnings.
The men agreed in February 2010 to accept 10 percent of the gross entertainment-related earnings of the estate, minus money generated by Jackson's 50 percent interest in the Sony-ATV music catalog and earnings from "This Is It," a film compiled from the singer's final rehearsals.

The exclusions are huge revenue generators for the estate — the Sony-ATV catalog includes publishing rights to music by The Beatles, Elvis Presley, Bob Dylan and other stars. The executors also have been excluded an interest in Jackson's music, which has sold briskly since his death June 25 at age 50.

Since then, the estate has earned more than $310 million.
Branca and McClain have been earning closer to 7 percent of the estate's entertainment-related earnings, as the estate has become a "massive entertainment business enterprise," court filings state.

Branca and McClain said they are spending more time developing Jackson projects than anticipated, including music, video games and a touring Cirque-du-Soleil show that will eventually become a Las Vegas fixture.
Under the deal approved Monday, Branca's firm Ziffren Brittenham LLP will now receive 3 percent of entertainment-related income generated by Jackson's estate.

Estate attorney Howard Weitzman said the firm was performing work that would cost more than $2 million a year if it was being handled by another firm, and court filings state that a traditional entertainment estate would include additional managers and attorneys who would receive up to 30 percent of the estate's overall revenue.
There was no estimate for how much McClain's billings may be. He bought and restored Gaye's former Los Angeles studio in 1997, christening it Marvin's Room, and Jackson and other top singers have recorded music there.

The estate benefits Jackson's mother, Katherine, and the singer's three children, Prince, Paris and Blanket. They received an initial $30 million payment on the estate's proceeds earlier this year.
Attorneys for Katherine Jackson and the children had no objection to augmenting the compensation for Branca and McClain. Meg Lodise, who represents the children's interest, said, "It is quite clear that what they're proposing is going to be fair to the estate."

Weitzman told Beckloff that the estate has recently resolved creditors' claims worth at least $11 million and is working to resolve any other valid outstanding debts. Jackson died with an estimated $400 million in debts, but renewed interest in his music and career have fattened the estate's accounts, which listed $90 million in cash on hand in a September court filing.
___






Read more: http://www.seattlepi.com/news/artic...ackson-estate-execs-2412642.php#ixzz1h0qBok7D​

 

[Vici]

Re: Judge approves pay bump for Jackson estate execs

Attorneys for Katherine Jackson and the children had no objection to augmenting the compensation for Branca and McClain. Meg Lodise, who represents the children's interest, said, "It is quite clear that what they're proposing is going to be fair to the estate."

Glad to hear that

 

[qbee]

Re: Judge approves pay bump for Jackson estate execs

Good news they deserve . They have been woking hard on a lot of projects.
Im so glad Katherine Paris Prince and Blanket approve

 

[legacylegacy7]

Almost every article written about the estate will only talk about it's success as a way of throwing Michael under the bus.


http://www.facebook.com/pages/Give-Michael-Jackson-credit-for-his-Estate/260054354029190

 

[elusive moonwalker]

Very true

 

[Memefan]

Almost every article written about the estate will only talk about it's success as a way of throwing Michael under the bus.


http://www.facebook.com/pages/Give-Michael-Jackson-credit-for-his-Estate/260054354029190

How is it throwing MJ under the bus? It's a fact the estate has been successful.

Anyway.. whining aside, well deserved....if only for the fact he has to deal with a bunch of conniving, lying, ready to sell their souls to the devil for a buck, folks.

ETA. And yes, I agree MJ deserves credit for his estate. Mainly for naming Branca...instead of the previously mentioned conniving folks.

 

[Ashtanga]

Good news.

 

[legacylegacy7]

It's a fact that MJ's estate was always successful. It is also a fact that had Michael lived he would have made more money than the estate has taken in.

Throwing Michael under the bus is the AP writing every article about the estate only descibing MJ as broke or "debt ridden" when they know that is not true. The AP knows for a fact that Michael Jackson left an Estate that was solvent. You tell us where they mention that once in this article.

 

[Memefan]

Solvent doesn't mean debt-free

It's also a fact MJ had debt. It's well known that he has borrowed heavily against some of his assets. Again, Solvent doesn't mean debt-free. FACT.

 

[ivy]

It is also a fact that had Michael lived he would have made more money than the estate has taken in.

r u sure? TII was supposed to bring around $100 Million (according to restitution asked in Murray Trial), Estate is grossing a lot more than that (over $300 Million the last I remember). As much as I hate to say it, I think the income has increased due to interest in Michael after his death.

 

[Autumn II]

This is such a HUGE amount of money, it's almost incomprehensible. I'm not sure I'm understanding all this? The executors were already getting a HUGE percentage. . ten percent? Seven percent? of all revenues from the artistic "products." Minus the ATV revenues, which were already in place? And now the Branca law-firm is getting more? Is THAT what this is? The estate surely is gaining revenue, but this is an ENORMOUS amount of money, for those managing it?

Can someone break down these figures?

 

[Justthefacts]

you expected them to do it for free?

 

[ivy]

This is such a HUGE amount of money, it's almost incomprehensible. I'm not sure I'm understanding all this? The executors were already getting a HUGE percentage. . ten percent? Seven percent? of all revenues from the artistic "products." Minus the ATV revenues, which were already in place? And now the Branca law-firm is getting more? Is THAT what this is? The estate surely is gaining revenue, but this is an ENORMOUS amount of money, for those managing it?

Can someone break down these figures?

I think you didn't understand it. Got a little confused?

Executors was supposed to get 10% and they were also paying their firms from that 10%. In other words from his 5% share Branca was paying Ziffren's costs and from his 5% share McClain was paying his studio and production costs.

So the Executors were receiving 7% as their personal fees - rather than the 10% they are supposed to get. They asked the Judge to adjust this.

So Judge allowed Ziffren's costs to be billed separately - 3%. McClain will be able to bill studio and production costs separately as well. (No percentage given for it).

So currently it's 5% for Branca, 5% for McClain, 3% for Ziffren firm and any future studio/production costs. If we assume the studio/ production costs are another 2-3 % it would bring it to 15-16% total. It's still a lot lower than the normal 20-30% if multiple parties, companies, managers etc were involved. For example if I'm not mistaken Raymone Bain herself alone was taking 15% when Michael was alive.

ATV revenues were never included, nor TII nor MIJAC. They only take percentage from what they bring in. Not from the assets Michael already had (ATV, MIJAC) and bring money on their own (with no action from Executors).

 

[qbee]

This is such a HUGE amount of money, it's almost incomprehensible. I'm not sure I'm understanding all this? The executors were already getting a HUGE percentage. . ten percent? Seven percent? of all revenues from the artistic "products." Minus the ATV revenues, which were already in place? And now the Branca law-firm is getting more? Is THAT what this is? The estate surely is gaining revenue, but this is an ENORMOUS amount of money, for those managing it?

Can someone break down these figures?

This is how I understand it _ I hope it helps

The men agreed in February 2010 to accept 10 percent of the gross entertainment-related earnings of the estate, MINUS money generated by Jackson's 50 percent interest in the Sony-ATV music catalog and earnings from "This Is It," a film compiled from the singer's final rehearsals.
The exclusions are huge revenue generators for the estate &#8212; the Sony-ATV catalog includes publishing rights to music by The Beatles, Elvis Presley, Bob Dylan and other stars. The executors also have been excluded an interest in Jackson's music, which has sold briskly since his death June 25 at age 50.

This means they are paid 10% and they dont take a percentage from Sony ATV- This IS It Movie _ or Mijac Catalog

Since then, the estate has earned more than $310 million.
Branca and McClain have been earning closer to 7 percent of the estate's entertainment-related earnings, as the estate has become a "massive entertainment business enterprise," court filings state.

Branca and McClain said they are spending more time developing Jackson projects than anticipated, including music, video games and a touring Cirque-du-Soleil show that will eventually become a Las Vegas fixture.

Under the deal approved Monday,Branca and McClain said they are spending more time developing Jackson projects than anticipated, including music, video games and a touring Cirque-du-Soleil show that will eventually become a Las Vegas fixture.

But they are Only making 7% becuase they are paying the Lawfirm out of thier own pocket
They have a much heavier work load now then expected Becuase the Estate has so many projects going.

Under the deal approved Monday, Branca's firm Ziffren Brittenham LLP will now receive 3 percent of entertainment-related income generated by Jackson's estate.

Estate attorney Howard Weitzman said the firm was performing work that would cost more than $2 million a year if it was being handled by another firm, and court filings state that a traditional entertainment estate would include additional managers and attorneys who would receive up to 30 percent of the estate's overall revenue. There was no estimate for how much McClain's billings may

They are doing Much more work now and generating more income for the Estate.

This shows is that Estate is doing very Well. Many Deals and projects

MJ Estate has become so HUGE they need more help to do the work. So Rather then hire a seperate huge Estate firm to handle all the work which could cost up to 30%.

Branca's firm Ziffren Brittenham LLP will now receive 3 percent of entertainment-related income generated by Jackson's estate. Branca was paying the firm out of his own pocket for thier services . Now he doesnt have to.

Now Branca and Mclain wil reciever their 10% split .. each get 5 %

This percent is Not high it is in normal range for executors of Estates and they have a HUGE business conglomerate to manage . - They are Making a Ton of Money for the Estate they deserve to be fairly compenstated for all the hard work they have done so far and are going to continue doing in the future. Its not going to hurt or deplete PPB Trust in the least .. and the Value of their Estate will continue to climb.


EDIT -Now you have 2 answers
LOL I didnt see Ivy already posted a reply. Hers was shorter and more to the point.
She is the best at this. I wasnt sure if I was reading it right or not..

 

[legacylegacy7]

Solvent doesn't mean debt-free

It's also a fact MJ had debt. It's well known that he has borrowed heavily against some of his assets. Again, Solvent doesn't mean debt-free. FACT.

Millionaires use their substantial credit and assets to make purchases all the time. They do this increasing their overall net worth while spending little money of their own. Of course for Michael people have been conditioned to describe everything about his finances as debt. Everyone has bills or loans but few have assets worth a $billion more than their liabilities. Only Michael Jackson would have such a incredible financial situation undercut by people repeatedly using the word "debt".

 

[legacylegacy7]

r u sure? TII was supposed to bring around $100 Million (according to restitution asked in Murray Trial), Estate is grossing a lot more than that (over $300 Million the last I remember). As much as I hate to say it, I think the income has increased due to interest in Michael after his death.

The Estate has taken in $400 million in the first two years. Michael Jackson was going to make $250 million from fiftey shows in London. He also had the option to increase the tour which would would have been worth $400 million over a 2 or 3 year period with AEG.

This does not include his music publishing revenue or any of the other many projects that we know he was working on.

 

[passy001]

r u sure? TII was supposed to bring around $100 Million (according to restitution asked in Murray Trial), Estate is grossing a lot more than that (over $300 Million the last I remember). As much as I hate to say it, I think the income has increased due to interest in Michael after his death.

but the $300m comes from the world wide sales of MJ music, the vidoe game,his share of his sony/atv, and the this is it movie.

Had MJ been alive he could have easily matched that figure. remember the $100m is just based on the London shows. MJ clearly intended to perform in other countries including the US, meaning that he would have earned much more. In fact the original estimate of the this is it project was $400m based on MJ touring the entire planet. That's far more than $300m. Also MJ would still have made money from his share of sony/atv (and that's huge). Plus, there was a video game (now Ubisoft MJ the Experience) already in the work at the time of his death, meaning that had he been alive he would still be making money off that project. so all in all MJ alive would have done as well or even better than MJ dead.

 

[serendipity]

but the $300m comes from the world wide sales of MJ music, the vidoe game,his share of his sony/atv, and the this is it movie.

Had MJ been alive he could have easily matched that figure. remember the $100m is just based on the London shows. MJ clearly intended to perform in other countries including the US, meaning that he would have earned much more. In fact the original estimate of the this is it project was $400m based on MJ touring the entire planet. That's far more than $300m. Also MJ would still have made money from his share of sony/atv (and that's huge). Plus, there was a video game (now Ubisoft MJ the Experience) already in the work at the time of his death, meaning that had he been alive he would still be making money off that project. so all in all MJ alive would have done as well or even better than MJ dead.

Right. Add to this merchandise from the tour, DVD's from the show, album(s) he was planning etc. I believe he could've made just as much as what the Estate is making now, if not more.

 

[ivy]

In fact the original estimate of the this is it project was $400m based on MJ touring the entire planet. That's far more than $300m.

$400 M was what he was supposed to do for a world tour - 5 year plan. $300M is one year.

It's hard to say what he could have done with TII. It's all based on 1)it being successful , 2) Michael staying committed to it and 3) doing all his plans (tour, movies, album, dvd).

 

[legacylegacy7]

http://articles.businessinsider.com...960114_1_london-concerts-music-video-aeg-live

Before Michael increased the shows to 50 based on demand, it was well known that his AEG deal could make $400 million over a three year period. This included the tour and a thriller 3D film. Again the $400 million fiqure was based on 10 shows. In March 09' no one was privy to the contract which shows that Michael was hoping for a record breaking 31 shows...And nobody had any idea that their would be enough response for 50.

Randy phllips said that Michael Jackson would have made 50 million pounds from only ten shows. In US money that is more than $5 million a show. The king Of Pop was going to make $250 million in London in only 8 months.

See Wikipedia this is it concerts

For more perspective in 2001 Michael Jackson made $14 million from his 2 concerts in New York.

 

[ivy]

The king Of Pop was going to make $250 million in London in only 8 months.

then why did they claim he was to make $100M at Restitution hearing and why the Lloyd's cancellation insurance is only around $17M?

btw during other hearings they said each show was going to bring about $1.5 Million in average.

also I guess you don't know the ticket prices for 2001 concerts versus TII concerts. The 2001 ticket prices ranged between $5,000 and $800. Not comparable to TII.

 

[twinklEE]

$400 M was what he was supposed to do for a world tour - 5 year plan. $300M is one year.

It's hard to say what he could have done with TII. It's all based on 1)it being successful , 2) Michael staying committed to it and 3) doing all his plans (tour, movies, album, dvd).

Point still remains that if the artist wasn't Michael Jackson but some random Jackson or a random singer such money would have never been generated in the first place. It's a fact that the interest in MICHAEL Jackson increased. Branca and McClain although they did an amazing job throughout these past two years, were ONLY able to do so, because they happened to represent MICHAEL JACKSON, and not any random celebrity. So let's not pretend they built up this empire and brand from the scratches on their own. Cuz that would be utterly ridiculous and insulting to Michael Jackson.

After singers/celebrities decease interest in them is bound to increase, but their estates still don't make the kind of money Michael's did.

 

[ivy]

Point still remains that if the artists hadn't been Michael Jackson but some random Jackson or a random singer such money would have never been generated in the first place. It's a fact that the interest in MICHAEL Jackson increased, Branca and McClain albeit having done a nice job in these past two years, were ONLY able to do so, because they happen to represent MICHAEL JACKSON, and not any random celebrity. So let's not pretend they built up this empire and brand from the scratches on their own. Cuz that would be an utterly ridiculous lie and insulting toward Michael Jackson.

and you are absolutely right. Of course everything is selling because it's Michael Jackson and partially -sadly- due to increased interest to him after his death.

I just think that he's earning more money in death , and again not necessarily due to the executors but due to the fact that he's dead. It's a common trend that we see for celebrities.

 

[legacylegacy7]

Good luck getting $250 million from Conrad Murray!

50 million pounds for only 10 shows is over $5 million a night. The king of Pop averaged about $7 million a show.

 

[ivy]

Good luck getting $250 million from Conrad Murray!

50 million pounds for only 10 shows is over $5 million a night. The king of Pop averaged about $7 million a show.

they aren't asking for $250M. and it's not about whether they can get it from Conrad Murray or not. When asked by the court about wages lost they said it's $100M. and Michael Jackson did not average $7M per show. The 2001 shows were special with really high ticket prices ranging from $800 minimum to $5,000 maximum. It cannot be compared to a show that had lower regular prices. His History tour brought $165M for 82 shows - average of $2.01 Million. Due to the seating capacity of 02 the revenues were estimated to be 1.5M per show. O2 has the capacity of 20,000 and the tickets were around 75 pounds. It equals to 1.5M. It's basic mathematics.

 

[loveforever]

I think in court they just counted the this is it tickets sale, the things that had happened. Can they include the protential concert merchandise sales, the planned concert docummantary and Concert DVD ect, also michael planned to release singles during his tour in london), plus his atv catalog. He would earn far far more that 100 million dollars in just 8 months. In 01, they also sold the broadcasting right, that also generated huge money for Michael. as long as Michael eager to work, he would always make huge money. Is there any celebrity could sell out 50 shows in just few hours and still have hundred of thousands people waiting in the line? We are talking about Michael Jackson here, he is not other celebrities, He is the pioneer, the perfection, the magic. Who knows what he was going to do to surprise the world.
Of course media want us to think in their way. But he is Michael Jackson.

 

[legacylegacy7]

It's basic mathematics.

Math?

2001 $14 million from two shows.


2009 (Randy Phillips) Michael would have made 50 million pounds from 10 shows alone.

50 million pounds equals $77 million US dollars.

 

[ivy]

Math?

2001 $14 million from two shows.

do you understand that $800 to $5,000 per ticket is WHOLE ALOT then $75 a ticket? Therefore it's impossible to make $14M with cheaper priced tickets?

2009 (Randy Phillips) Michael would have made 50 million pounds from 10 shows alone.

50 million pounds equals $77 million US dollars.

see the court documents below. I don't care how he exaggerated or what he said to the media. The estimates are around $1.4 to $2 million per show.

This also makes sense because :

20,000 seating capacity times 75 ticket price = 1.5 Million
Assume the people also spend 75 for merchandise = 1.5 million
Total of 3 million
Minus AEG's share from the revenues
You'll leave with a number less than 3 Million. 1.4 to 2 million per concert makes sense.

 

[elusive moonwalker]

The 01 shows prices were betwen $45 and thousands. but of course just because one set of shows made x amount in 2001 it has no bearing on what other shows make because of the cost of tickets etc.