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How does mike get money from SONY/ATV catalogue?

ahmadnat

ahmadnat

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I know this is probably a stupid question but I never quite understood how businesses work. So i was basically wondering, on what basis he gets money from it?
Say a million dollars is made in a single year from all the songs. Any expenditure is taken off and the profit is left. But now this, obviously wouldnt go straight to Mike, cuz its not all his. But surely it also doesnt get split into half and then given to Mike and ATV cuz the company itself needs money aswell, right?
I was just wondering what part of the money would be directly given to mike, and how much would go back into the company, and how is all this calculated?

Sorry.. i know this is very little MJ-related.. more cuz of my lack of knowledge on how a business runs, but Id appreciate if someone could answer
 
As far as I know he doesn't get any money from the catalogue. It's going straight towards paying of his debts. Not sure though.
 
Publisher - The publisher is the person (or company) who works with the songwriters to promote their songs.
Publishers usually get either partial or total ownership of the song copyright, known as "assignment" or "transfer" of the copyright. They pitch the songs to record labels, television or movie producers, or anyone else who may be interested in it. They then license the rights to use the song and charge fees. Those fees are typically split 50/50 with the songwriterRecording company (record label) - The recording company creates, markets and distributes the recordings.
Performing rights organization (PRO) - A performing rights organization is an association, corporation, or other entity that licenses the public performance of nondramatic musical works on behalf of the copyright owners. The major performing rights societies are:
 
Well, I don't really know about Sony Atv, but I did do business studies in college which included busness law and busness accounting. Sony/atv is a very large company. After all expenditures are deducted, including wages etc. You are left with the gross profit. That is the profit before tax. From that money there is what is known as Investment and depreciation. This is about 30% of profit which is injected back into the business and is used for buying catalogues and expanding the business. After all that is done the tax ix paid. I do not know how the american tax system works.
It is the net profit that is split up and shared out to all the shareholders. First, I would assume that the royalties would be paid first, then MJ would get half of what is left, which is paid into a trust fund for him.
However, there is also another way that he can be paid. That is by being an employee of the firm. That is very easy. if Bandier needs to seek his advice in making decision, them MJ is an executive employee and is therefore entitled to an exuctive salary. I believe he gets this. It was reported by that fool that Sony pays MJ $8-10 million a year. That would have been the pay for executive work.
 
Thanks datsymay. Thats exactly what I wanted to know. I was wondering how the percent of money he gets is calculated unless he is classed as an employee (which would make it a lot simpler, but I'm pretty sure hes not).

The Investment and depreciation is pretty much what I was looking for. Thanks :yes:

GiveintomeMJ; Thanks for taking the time to find all that info. But I think thats more about how royalties and stuff are given and calculated and what artists get.

kleptomike; thats not my point. Whether it goes to pay debts or straight to his bank is not what related.
 
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ahmadnat said:
Thanks datsymay. Thats exactly what I wanted to know. I was wondering how the percent of money he gets is calculated unless he is classed as an employee (which would make it a lot simpler, but I'm pretty sure hes not).

The Investment and depreciation is pretty much what I was looking for. Thanks :yes:

GiveintomeMJ; Thanks for taking the time to find all that info. But I think thats more about how royalties and stuff are given and calculated and what artists get.

kleptomike; thats not my point. Whether it goes to pay debts or straight to his bank is not what related.
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If MJ attends board meetings and makes statements about the firm, then he is employed by the company. I noticed that this has been happening a lot recently. Everytime they buy new catalogue he makes a statement. Also, if he is consulted by Bandier and if he signs checks. That is top job. He will be getting top money for that, so the 8 to 10 million does ring true. This has nothing to do with the profit of the company which he gets 50 % of. It is that money that is paid into his trust fund.:)
 
There is no information that Michael Jackson holds any executive positions at Sony/ATV MP, so the way for him to get money from the company is just to receive dividends -- his 50% of net profit each quarter.

However, for the development purposes, owners may refuse to receive dividends and invest all of net profits into purchase of additional property, like another publishing catalogues.

Also, since Jackson reformed his ownership in Sony/ATV MP as trust fund, earnings from the company are probably going to creditors either completely, or partially.
 
according to the refinancing deal all money from sony/atv/mijac goes into a trust fund to pay off his 200 mill or whatever it was loan.thats to last for 4 years or so depending on how quick he pays it.
 
denisrs said:
There is no information that Michael Jackson holds any executive positions at Sony/ATV MP, so the way for him to get money from the company is just to receive dividends -- his 50% of net profit each quarter.

However, for the development purposes, owners may refuse to receive dividends and invest all of net profits into purchase of additional property, like another publishing catalogues.

Also, since Jackson reformed his ownership in Sony/ATV MP as trust fund, earnings from the company are probably going to creditors either completely, or partially.
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Mj os taking a direct role in Sony/atv now. He never used to give statements but he does now. His name appears more often in regards to the business now. When the refinancing took place it was revealed that Sony would pay MJ $8-10 million per year. This is not dividend. This is an annual salary. Dividends cannot be fixed. Salary is fixed.
If Sony is paying MJ an annual salary, then MJ must be doing something for that money. If he is, then he is a salaried worker. This is exclusive to any profits or dividens that he recieves in his trust fund. Mj would not have to do much for that money. All he would be required to do is be at board meetings where necessary, or to be availble for check signing etc. I actually believe that MJ, after buying that extra 5% from John Branco, and is now 50% owner of the company, is now very involved in the company. This is the reason why he is paid. Every top man in a company is paid for the work that they do, over and above any profit that is made in the company.:)
 
Datsymay said:
Mj os taking a direct role in Sony/atv now. He never used to give statements but he does now. His name appears more often in regards to the business now. When the refinancing took place it was revealed that Sony would pay MJ $8-10 million per year. This is not dividend. This is an annual salary. Dividends cannot be fixed. Salary is fixed.
If Sony is paying MJ an annual salary, then MJ must be doing something for that money. If he is, then he is a salaried worker. This is exclusive to any profits or dividens that he recieves in his trust fund. Mj would not have to do much for that money. All he would be required to do is be at board meetings where necessary, or to be availble for check signing etc. I actually believe that MJ, after buying that extra 5% from John Branco, and is now 50% owner of the company, is now very involved in the company. This is the reason why he is paid. Every top man in a company is paid for the work that they do, over and above any profit that is made in the company.:)
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I've read it somewhere, too! :punk:

And I've also observed that he is making statments like ' I am glad to add this catalogue'... this is executive power.

Something changed after he bought the 5 % from Branca... I've also observed that in media, now they mention him as a partner to Sony everytime, while in the past they did it rarelly, avoiding his name.
 
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Datsmay took the words right out of my mouth and said it better than I was going to.. so I don't got nothin' to say.. :)
 
Of course he's an executive. According to CNN financial, Michael Jackson and Sony Corp. earn something between 80-100 million dollars per year thanks to SONY/ATV songs publishing (only in the US) shared at 50/50.

Regarding acquisition, each time SONY/ATV makes one, Sony/ATV board consults Jackson for mutual agreement. That was the deal from the begining, including so many other clauses that protect Michael Jackson.

Concerning, song publishings (radio, live perf., sampling, commercial, ....) same process : mutual agreement. i.e. Lisa Marie Presley was angry about the fact that MJ let some "stupid" commercial using an Elvis song.

The problem with this 3rd largest music publishing company is the administration costs, the more you make acquisitions (Famous music, etc...) the more you share those costs. Easy for Sony Corp., a little risky for Mike, he has to borrow cash for this, that's what we call investment in ecomonics and bankrucpty in media tabloid.

Maybe Michael Jackson looks nice and shy but he's one of the smartest businessman in the music industry ;)
 
Salomons said:
Of course he's an executive. According to CNN financial, Michael Jackson and Sony Corp. earn something between 80-100 million dollars per year thanks to SONY/ATV songs publishing (only in the US) shared at 50/50.

Regarding acquisition, each time SONY/ATV makes one, Sony/ATV board consults Jackson for mutual agreement. That was the deal from the begining, including so many other clauses that protect Michael Jackson.

Concerning, song publishings (radio, live perf., sampling, commercial, ....) same process : mutual agreement. i.e. Lisa Marie Presley was angry about the fact that MJ let some "stupid" commercial using an Elvis song.

The problem with this 3rd largest music publishing company is the administration costs, the more you make acquisitions (Famous music, etc...) the more you share those costs. Easy for Sony Corp., a little risky for Mike, he has to borrow cash for this, that's what we call investment in ecomonics and bankrucpty in media tabloid.

Maybe Michael Jackson looks nice and shy but he's one of the smartest businessman in the music industry ;)
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Very good find indeed. I believe that MJ is paid a regular salary for his executive work just like any top manager would. That is what the 8- 10 million was for.:D He will still earn equal share in the profits, but that goes straight to his trust fund.:)
 
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Thanks for all of you for sharing these pieces of information. Now it's a little bit clearer to me.
 
a little risky for Mike, he has to borrow cash for this,
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i would think that the money comes out of the company profits when new cats are bought.the individual parties dont take out laons in their own right for the companies use. if loans are taken they are taken out by the company and not the individual. so its risky to both parties because each is joint owner of the company.
 
Datsymay said:
Mj os taking a direct role in Sony/atv now. He never used to give statements but he does now. His name appears more often in regards to the business now. When the refinancing took place it was revealed that Sony would pay MJ $8-10 million per year. This is not dividend. This is an annual salary. Dividends cannot be fixed. Salary is fixed.
If Sony is paying MJ an annual salary, then MJ must be doing something for that money. If he is, then he is a salaried worker. This is exclusive to any profits or dividens that he recieves in his trust fund. Mj would not have to do much for that money. All he would be required to do is be at board meetings where necessary, or to be availble for check signing etc. I actually believe that MJ, after buying that extra 5% from John Branco, and is now 50% owner of the company, is now very involved in the company. This is the reason why he is paid. Every top man in a company is paid for the work that they do, over and above any profit that is made in the company.:)
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OMG Thanks for this info:eek: Wow MJ got 50%. :lol:

Salomons said:
Of course he's an executive. According to CNN financial, Michael Jackson and Sony Corp. earn something between 80-100 million dollars per year thanks to SONY/ATV songs publishing (only in the US) shared at 50/50.

Regarding acquisition, each time SONY/ATV makes one, Sony/ATV board consults Jackson for mutual agreement. That was the deal from the begining, including so many other clauses that protect Michael Jackson.

Concerning, song publishings (radio, live perf., sampling, commercial, ....) same process : mutual agreement. i.e. Lisa Marie Presley was angry about the fact that MJ let some "stupid" commercial using an Elvis song.

The problem with this 3rd largest music publishing company is the administration costs, the more you make acquisitions (Famous music, etc...) the more you share those costs. Easy for Sony Corp., a little risky for Mike, he has to borrow cash for this, that's what we call investment in ecomonics and bankrucpty in media tabloid.

Maybe Michael Jackson looks nice and shy but he's one of the smartest businessman in the music industry ;)
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:punk: Amen to the last sentence LOL
 
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I took some business law and accounting too and I agree with Dats and Elusive.

Michael definitely has executive power in this company. If he did not, they would not have to consult with him and get his approval whenever they make an acquisition or other business deal. And the $10 or $11 mil annual salary sounds pretty plausible to me.

And as far as administrative expenses go, neither party pays for this out of pocket. It is shared by both parties and comes from the company.

Michael is actually in a better position than Sony. Michael is an individual. Sony is a company. The two parties have 50% ownership in Sony/ATV. Michael is taking care of himself and three small children. Sony is running a huge record label in an industry that is selling less and less records everyday and their movie business is doing its best to keep them afloat.

If Sony's record division goes belly up...which is highly possible...they could find themselves relying totally on their movie division and their music publishing division. Without the record division, they may want to sell something.....like the Sony/ATV catalogue. And Michael gets first dibs. Michael, on the other hand, just sits back and uses his royalties and his cow money to support himself and his kids. A small responsibility compared to what Sony has. Now you can see why Sony wanted the whole kit and kaboodle. You can also see why Sony has a vested interest in helping Michael to not default on his loan.

It was a very smart move for Michael to forward his annual salary into a trust to pay off that loan. Very smart. One day, that loan will be no more and all that money will go to Michael.
 
To be correct, term "executive" belongs only to people who hired to proceed with day-to-day operations -- like CEO, COO, CFO, CTO, and so on.

As shareholder, Michael just has his representative in the board of directors ("directors" here means shareholder/representative of shareholder) to vote for or against decisions that proposed by committees (like compensation one), audit reports, management proposals on dividends assignation, investments, and so on. Board of Directors usually called once in quarter or any time on specific cases.

So no, Jackson is not executive, though he has deciding power along with Sony on strategic matters.
 
denisrs said:
To be correct, term "executive" belongs only to people who hired to proceed with day-to-day operations -- like CEO, COO, CFO, CTO, and so on.

As shareholder, Michael just has his representative in the board of directors ("directors" here means shareholder/representative of shareholder) to vote for or against decisions that proposed by committees (like compensation one), audit reports, management proposals on dividends assignation, investments, and so on. Board of Directors usually called once in quarter or any time on specific cases.

So no, Jackson is not executive, though he has deciding power along with Sony on strategic matters.
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Densir, Michael jackson is not a share-holder of Sony/Atv. MJ is the sole owner of ATV, None of that is floated on the stock market. Sony's company is a shareholding company, sony is share holder, not Michael. Do not get it mixed up. They are 2 different companies that has a merger. If MJ is working in any capacity in the business, he will demand a salary for that job.
 
kleptomike said:
As far as I know he doesn't get any money from the catalogue. It's going straight towards paying of his debts. Not sure though.
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How do you know this as fact. That's what the media says, not the reality.

If Michael is in debt (who don't know how badly), that doesn't mean he doesn't have any income from his business's such as MJJ Productions, MiJac Music and Sony/ATV.
 
Salomons said:
Of course he's an executive. According to CNN financial, Michael Jackson and Sony Corp. earn something between 80-100 million dollars per year thanks to SONY/ATV songs publishing (only in the US) shared at 50/50.

Regarding acquisition, each time SONY/ATV makes one, Sony/ATV board consults Jackson for mutual agreement. That was the deal from the begining, including so many other clauses that protect Michael Jackson.

Concerning, song publishings (radio, live perf., sampling, commercial, ....) same process : mutual agreement. i.e. Lisa Marie Presley was angry about the fact that MJ let some "stupid" commercial using an Elvis song.

The problem with this 3rd largest music publishing company is the administration costs, the more you make acquisitions (Famous music, etc...) the more you share those costs. Easy for Sony Corp., a little risky for Mike, he has to borrow cash for this, that's what we call investment in ecomonics and bankrucpty in media tabloid.

Maybe Michael Jackson looks nice and shy but he's one of the smartest businessman in the music industry ;)
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do you have a link to the cnn financial-article? cant find it :(
 
omg..this is great information for my commerce degree i'm doing right now. :p might come into use one day.

but it's interestig for a MJ fan anyways...keep it coming guys.

Edit: by the way, what's a trust fund? lol is it an american thing?
 
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How do you know this as fact. That's what the media says, not the reality.

If Michael is in debt (who don't know how badly), that doesn't mean he doesn't have any income from his business's such as MJJ Productions, MiJac Music and Sony/ATV.
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the refianacing agreement is available to the public.mj wanted it sealed but the judge refused. some fans got the info from the courthouse.hence why we know about sony having the option to buy 25% of sony atv off mj until the end of this month and all the money he makes off sony/atv and mijac going into a trust fund and going directly to pay off one of the loans. a few in the media bothered to read and report the docs but many didnt cause it went against their agenda of saying mj lost 25% of the cat.
 
Edit: by the way, what's a trust fund? lol is it an american thing?
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interms of mj its a way of making sure he makes payments. all the money he makes from the cats goes into this fund and then goes directly to paying the bills. he cant really touch it. he can pay more money into to but cant take any out.so its an aexcellent way of making sure theres no default. theres also something about the moeny being protected from laswuits but i dont know the details about that
 
elusive moonwalker said:
the refianacing agreement is available to the public.mj wanted it sealed but the judge refused. some fans got the info from the courthouse.hence why we know about sony having the option to buy 25% of sony atv off mj until the end of this month and all the money he makes off sony/atv and mijac going into a trust fund and going directly to pay off one of the loans. a few in the media bothered to read and report the docs but many didnt cause it went against their agenda of saying mj lost 25% of the cat.
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The money that goes into the trust fund is not the same as the 10million salary that MJ recieves for his work with the company. The money that goes into the trust fund is his share of the PROFIT.
MJ is being payed separately from the profiit he makes from the company, which he would have made anyway, by doing nothing.
 
elusive moonwalker said:
interms of mj its a way of making sure he makes payments. all the money he makes from the cats goes into this fund and then goes directly to paying the bills. he cant really touch it. he can pay more money into to but cant take any out.so its an aexcellent way of making sure theres no default. theres also something about the moeny being protected from laswuits but i dont know the details about that
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I have grave doubts about this theory and unless I see it in writing I will not believe it because it just doesn't make any sense at all. Also, it was understood that MJ also had the right to but out Sony's share in the same way that Sony had the right ti buy MJ's and that they took it in turns. In fact the same obligtion to buy is equal on both sides, which make more sense to me.
 
yeah im talking about the profit/royalty money. thats what goes into the trust fund to pay the debt.
 
elusive moonwalker said:
yeah im talking about the profit/royalty money. thats what goes into the trust fund to pay the debt.
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Ok. I agree with the profit royalty money going into his trust find. I have grave doubts about it paying debts though, because it doesn't make any sense and that story came from s.hitface.
I remember though it MJ was being paid 8-10 millions annually, that could only be for salary, that woulkd go directly to him and I believe that is what he uses to pay his staff, his ex wife and maintain his lifestyle, as well as his own personal recordings.:)
 
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Ok. I agree with the profit royalty money going into his trust find. I have grave doubts about it paying debts though, because it doesn't make any sense and that story came from s.hitface.
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the info comes from the refinancing documents. i have no reason to disbelive the ppl who have seen them as i know and respect them.
 
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