MJ Estate Sues Tohme Tohme / Tohme Countersues / Tohme's Complaint [Merged]

[Petrarose]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Well spotted. That's exactly what I've been saying since day one. Take RB lawsuit and replace her name with Tohme and you pretty much get something similar (90%) to the current Tohme lawsuit except for the dodgy Nevy and indemnity agreements. If RB says all that stuff and what did Tohme do?

Also, when the executors took over, they also claimed the same thing in one of their probate reports i.e they renegotiated debt and loans to more favorable interest rates, They renogatiated the this is it movie and soundtrack with Sony and so on. MJ finances were all over the place and so had to be streamlined, they rehabilitated MJ's image, and so on. Assuming that is true, then what did Tohme do to deserve even a fraction of what he claims?

True. Unlike Bain/Thome we do have the evidence about the Estate renegotiating loans, etc. For instance they were able to reduce the interest rates. Whoever did the job the last time made deals where the rates were sky high. However, we cannot see the evidence of the favorable work Thome did except the criminal aspect of it.

 

[AliCat]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Dr Tohme Tohme Handled Finances For Michael Jackson October 26, 2010

Dr. Tohme Tohme was Michael Jackson's financial advisor in the last year of the popstar's life. Through Dr. Tohme R Tohme's advice, Jackson made several important financial decisions which helped him to secure the future of his children and avoid complete financial ruin. Even with his finances dwindling, Michael Jackson cared for people he loved and he bought a $600,000 motor home for his mother Katherine and bought and sent a $400,000 bracelet for a celebrity friend. Dr. Tohme Tohme also said that Michael Jackson was an excellent father and his love for his children knew no bounds.

Michael Jackson also received financial guidance and advice from Tohme R Tohme to save his ranch Neverland from falling into foreclosure. When Dr. Tohme Tohme met with Michael Jackson in Las Vegas in the first half of 2008, he bonded with the singer, and during the following year, served as Jackson's financial business manager and spokesperson, and was instrumental in negotiating lucrative deals that included Michael Jackson's planned comeback run at the O2 arena in London. Dr. Tohme Tohme said that the star was excited about his concerts as this would give his children an opportunity to see him perform. Tohme had been diligently working with Jackson to turn around the star's finances and manage them in a more profitable manner.

Tohme Ramez Tohme also negotiated deals for a "Thriller" Broadway show along with an animated series based on "Thriller". Among other prospective deals was a clothing line that was to include "moonwalk shoes". Dr. Tohme Tohme was also working to renegotiate the terms of some of Jackson's main assets. These assets included the singer's part of the Sony-ATV Music Publishing Catalog against which Jackson had taken out massive loans in previous years to support his expensive lifestyle. Dr. Tohme Tohme was deeply saddened by Michael Jackson's sudden passing.

Read more: Dr Tohme Tohme Handled Finances For Michael Jackson http://www.sooperarticles.com/busin...ces-michael-jackson-188210.html#ixzz1nbYYwecs

---Michael had called John Branca to help with generating new ideas before he passed. Thome reminds me of Deiter Weisner with these ideas of business ventures. The speaker's that never transpired!

 

[AliCat]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Dr. Tohme Ramez Tohme is an international businessman and financial expert who has moved about the inner circles of the powerful, rich and famous for many years. As Michael Jackson"s manager in 2008 and 2009, Dr. Tohme used his financial and managerial expertise to resolve many complex issues that had plagued Michael Jackson both personally and professionally.

At a time when many of Michael Jacksons associates appeared to have abandoned him, Jackson relied on Dr. Tohme Tohme, who worked diligently with Jackson to restructure and improve Jackson"s finances. In 2008, Tohme"s efforts led to a real estate deal which saved Michael"s Jackson"s Neverland Ranch from foreclosure. Dr. Tohme also played an instrumental role in amicably resolving a legal matter that was preventing the King of Pop from engaging in new creative endeavors and performing.

As Michael Jackson"s manager, Dr. Tohme Tohme oversaw Jackson"s many personal and complex financial matters and worked closely with Jackson on handpicked business endeavors designed to resurrect Jackson"s career. Tohme"s and Jackson"s collaborative efforts resulted in lucrative deals, such Jackson"s agreement with the Nederlander company for a Broadway musical based on Thriller, and Jackson"s historic This Is It concert deal with AEG. In February, 2009, over 500,000 tickets were purchased by Jackson"s loyal fans. With Tohme by his side, Jackson personally announced his tour at the O2 Arena to thousands of his adoring fans and a historic 3.5 minute television commercial aired on U.K television. The show would have been the King of Pop"s crowning glory had it not been for his untimely passing, which deeply saddened his manager and confidant, Dr. Tohme Tohme.


Read more: http://www.articlesnatch.com/Articl...-Michael-Jackson-Career/1809451#ixzz1nbbYt4Yl
Under Creative Commons License: Attribution No Derivatives

...and that's why both John Landis and Ola Ray appeared just before Michael died seeking money with lawsuits. All I thought was does it ever end, Michael is trying to do the right thing by going back to work and all he does is continue to be sued!

 

[Bonnie Blue]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Thanks for those articles, alicat. I'm not an expert in the rarified high financial circles that thome claims he moves in, but the man has no internet presence, nobody seems to be able to vouch for him (i'm ignoring jermaine!) or know anything about him - he is beyond shady.

Again i'm not a financial whizz, but i would have thought that renegotiating the massive loan mj had with its skyhigh interest rate would have been priority no 1 rather than developing some moonwalker shoes. That part of his lawsuit where he says he flew to bahrain to get mj out of the lawsuit with the prince - that was a complete failure as the case went to court with unwanted publicity for mj and mj was almost forced to fly to london to testify. Very unusual, as most civil cases manage to settle before going to court.

I think all tohme can really point to is his inspired suggestion that mj repeat this is it in a high spirited tone at a press conf.

 

[AliCat]

Here's 1 more Article about Thome and Thomas Barrack of Colony Capital and their connection to President Ronald Reagan...

*Tohme Tohme*

Struggling to remain composed, Jermaine Jackson confirmed the shock death of his brother at a UCLA press conference.

He walked off stage and hugged Dr Tohme R Tohme.

Not a practicing doctor, Dr Tohme had been the dead singer's unofficial manager for several years, in what one insider called Jackson's "vagabond existence" flitting between countries and on the largesse of others.

Dr Tohme was dropped from his managerial role earlier this year - but he wasn't out of the scene for long. He has since admitted to Fox News that he is unlicenced and would not say where or in what he specialised in.

Believed to be Lebanese, Dr Tohme describes himself as the "Ambassador at Large" for the country of Senegal - a claim apparently disputed by diplomats. On his website, TRW Advertising, Dr Tohme says his co-owner is a winner of Venice and Cannes film festivals as well as being responsible for Ronald Reagan's presidential campaign.

Early last year Jermaine Jackson asked Dr Tohme to help solve the financial crisis as his brother Michael defaulted on a mortgage payment for Neverland. Dr Tohme knew who to call.

In addition to being responsible for airing a 240-second King of Pop promo for ticket sales on British TV, Dr Tohme did more mundane corporate videos. One video was for property investment firm Colony Capital, so Dr Tohme called owner Thomas Barrack in March, 2008.

*Thomas Barrack*

Within a week of Dr Tohme's call Colony Capital boss Barrack visited Las Vegas where Jackson was holed up in a non-descript housing compound. The frail singer was struggling with debt nearing $400m (£240m) and was being moved around in a wheelchair.
Barrack became the owner of Neverland's decaying 2,700-acres and rumours circulated of a plan to subdivide and sell Neverland in 100-acre parcels.

But Barrack was hit hard by the credit crunch and is working on a public float of a subsidiary. His investment funds have stakes throughout the US, and in retailer Carrefour, football team Paris St Germain and even London's Savoy Hotel. The lawyer and former political appointee knows Neverland well, having lived on a nearby 1,200-acre ranch since 1992. While Neverland is only 10 miles away, another sprawling property 14 miles in the other direction is owned by Barrack's former boss, President Ronald Reagan.

Barrack also saw the value in getting Jackson performing again. "You are talking about a guy who could make US$500m a year if he puts his mind to it," he said recently. "There are very few individual artists who are multi-billion dollar businesses. And he is one."

It was Barrack who called in pal and business tycoon Philip Anschutz, who controls concert production firm AEG Live. The president and chief executive of AEG Live, lawyer Randy Phillips, estimated Jackson would make up to US$100m from the 50 London concerts - perhaps rising to US$500m for a world tour.

Yet Phillips downplayed his firm's motives.
"We're not in this for the money - we're taking a huge risk on Michael," he said. Indeed they were.

http://news.sky.com/home/showbiz-news/article/15327857

 

[Bonnie Blue]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

^ But they weren't taking a risk, if our reading of the aeg contract is correct. All the production costs come out of mj's advance don't they? I don't know anything about tour contracts so don't really know if this is highly unusual, but i'm sure in the past mj got others to sponsor his tours, eg pepsi who would shoulder the financial responisbility. Say mj died the week before any usable footage of tii cd be shot, aeg wd i imagine just be able to get the $30m prod costs back from mj's estate.

I really don't know what the real motivation of barrack is to get mj to perform again. Did he just want mj to pay his loan back. The intolerable pressure that the family are claiming aeg put on mj to perform seems to have originated with that neverland loan.

 

[Autumn II]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

^ But they weren't taking a risk, if our reading of the aeg contract is correct. All the production costs come out of mj's advance don't they? I don't know anything about tour contracts so don't really know if this is highly unusual . . . .

VERY unusual. If you read the contract carefully, it's quite negative toward Michael. To verify HOW unusual, it would be necessary to compare it to other, similar contracts, either Michael's or from other entertainers -- in terms of tours, and who bears the burden of production costs.

Also, wasn't TII already quite over-budget? And not finished, when Michael died, so we can assume it would have been even more expensive?

In my reading of the contract, it seems that if he'd canceled, Michael would have lost his shirt. . . . .

 

[ivy]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

^ But they weren't taking a risk, if our reading of the aeg contract is correct. All the production costs come out of mj's advance don't they? I don't know anything about tour contracts so don't really know if this is highly unusual, but i'm sure in the past mj got others to sponsor his tours, eg pepsi who would shoulder the financial responisbility. Say mj died the week before any usable footage of tii cd be shot, aeg wd i imagine just be able to get the $30m prod costs back from mj's estate.

VERY unusual. If you read the contract carefully, it's quite negative toward Michael. To verify HOW unusual, it would be necessary to compare it to other, similar contracts, either Michael's or from other entertainers -- in terms of tours, and who bears the burden of production costs.

Actually I have worked in music industry and have experience with organizers, it's not uncommon however it's not up to Michael's level either. Let me explain.

Organizers overall will approach artists according to their demand levels and popularity. For example if there's a really popular artists that they are sure that will sell out, they would offer that artist an amount such as $5M for a night and they would arrange for everything (renting the location, finding a sponsor, ticketing etc.). The logic would be that the organizers would believe that this popular artist would bring a lot more money than they are paying them, they would be profitable.

In the instances of unknown and not real popular artists, the organizers can put the costs on the artists and do a profit share agreement. So rather than saying $3M a night, they would say "you cover the renting of the venue costs and you get 80% of the ticket proceeds". In this scenario if no one came the organizer would not be in any loss - as the artist is covering the costs.

I have seen and been a part of both scenarios. For example I worked with a national music group. In our home country they got a fixed amount of money for a performance and everything else fall on the shoulder of the organizers. However when they performed foreign countries in which they were relatively unknown performers that the organizers weren't sure about if the tickets will be sold or not , we were asked to cover the costs.

so it's not uncommon. However it shows that AEG did not necessarily have positive opinion to start with and that they probably considered Michael as a high risk and unknown demand. I wouldn't expect to see such agreement for an artist that's at Michael's caliber.

I really don't know what the real motivation of barrack is to get mj to perform again. Did he just want mj to pay his loan back. The intolerable pressure that the family are claiming aeg put on mj to perform seems to have originated with that neverland loan.

After reading Tohme to say that he put aside $5.5M from Sony royalties, I don't think paying back $23M would be a problem for Michael. However it's important to remember that Michael's loans on catalogs (over $300M) were to mature in late 2010/ 2011. If what Jermaine said is true and if Michael asked Barrack help with those loans , the logical recommendation might have been to tell him to start performing again. Even from 50 concerts they expected Michael to earn $1 - $2 Million a concert. Such earnings would have allowed him to pay his loans and keep his catalogs. If he couldn't he could have lost the catalog to the lenders - not AEG.

In my reading of the contract, it seems that if he'd canceled, Michael would have lost his shirt. . . . .

not quite for two reasons.

1) Michael didn't put everything he owned as collateral. He only put what MJ Company owned. And neither Sony / ATV or Mijac or Neverland was owned by MJ Company. That's a common misconception. Michael's Share in Sony/ATV is owned by MJ ATV Publishing Trust, Mijac is owned by MJ Publishing LLC and Neverland is owned by Sycamore Valley Ranc LLC. None of the main assets were collateral.

2) You can only owe that you have been loaned. In other words if Michael was given $6M in advances and the production were somewhere $30M. That mean he would be required to pay back around $40 M. Legally you can only get $40M for a $40M debt. (plus interest + fees). In other words they can't get a $500M catalog for a $40M debt.

 

[Bonnie Blue]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Well, i;m not sure why aeg gets all the heat then for that situation. They're not a charity, they're going to get the best possible contract they can. The blame lies with tohme imo for negotiating such a poor contract for mj, or if mj's back was against the wall and this was the only contract he cd get with his by now flaky reputation, whoever was breathng down mj's neck to get him to get some big money - barrack. I wish mj had let neverland go, so his money problems hadn't been so acute in 09.

 

[marebear]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

I am so confused here. What Michael owned, what he owed and all this stuff.

 

[ivy]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Well, i;m not sure why aeg gets all the heat then for that situation. They're not a charity, they're going to get the best possible contract they can. The blame lies with tohme imo for negotiating such a poor contract for mj, or if mj's back was against the wall and this was the only contract he cd get with his by now flaky reputation, whoever was breathng down mj's neck to get him to get some big money - barrack. I wish mj had let neverland go, so his money problems hadn't been so acute in 09.

As a Michael Jackson fan , I'm unhappy with the rather crappy - we see you high risk, unknown popularity demand - contract.

However from a rational perspective it would make sense that the organizer approached to him as a high risk performer, as he didn't perform for a long time and he had negative personal life issues. I cannot blame any organizer for being risk averse in that situation.

A better contract would be a short term contract with an option to negotiation. Such as doing this contract but after a certain number of concerts - when the demand and Michael's ability to perform is established - to renegotiate.

 

[ivy]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

I am so confused here. What Michael owned, what he owed and all this stuff.

In AEG contract Michael pledged everything that "Michael Jackson Company LLC" owns.
As a common misconception most of the fans assume that "Michael Jackson Company LLC" owns all of Michael's assets and therefore everything Michael owned was on the line if he cancelled.
It doesn't.
Michael's assets were divided around 30 different legal entities.
The main assets such as Sony / ATV was owned by "MJ ATV Publishing Trust", Mijac was owned by "MJ Publishing LLC" and Neverland was owned by "Sycamore Valley Ranch LLC".
In other words Michael didn't put his main assets as collateral in AEG contract.


Michael owed over $300 M in loans for Sony/ ATV and Mijac. It was due to mature late 2010 or early 2011.
AEG deal made him responsible for the production costs as well which was over $30M.

Ps: Neverland deal might not be something that he needs to pay back. Because Colony Capital got 12.5% of Neverland ownership and 100% equal use rights of Neverland in exchange for $23M they gave.

 

[elusive moonwalker]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

n AEG contract Michael pledged everything that "Michael Jackson Company LLC" owns.

which was what ivy? do u know?

 

[ivy]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

which was what ivy? do u know?

It was established by Raymone Bain in 2006. The goal was to transfer MJ Productions assets to it and phase out MJ Productions. However even that wasn't done. So some intellectual property dated after 2006. It's impossible to say what it held for certain. However we can say that it didn't have any major assets. All of the above information about Sony/ATV, Mijac and Neverland can be found at the Estate accounting documents.

So in short I can't tell you what MJ Co LLC owned but I can tell you that it didn't own the catalogs and Neverland.

Later tonight I can post screenshots if you all want to see it yourselves.

 

[elusive moonwalker]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

thanks ivy. you also mentioned about the loans maturing in or around 2011. i read that by that date they would have been paid off. is that incorrect and what was really ment was that in 2011 they would have had to have been refinanced/moved etc

 

[marebear]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

In AEG contract Michael pledged everything that "Michael Jackson Company LLC" owns.
As a common misconception most of the fans assume that "Michael Jackson Company LLC" owns all of Michael's assets and therefore everything Michael owned was on the line if he cancelled.
It doesn't.
Michael's assets were divided around 30 different legal entities.
The main assets such as Sony / ATV was owned by "MJ ATV Publishing Trust", Mijac was owned by "MJ Publishing LLC" and Neverland was owned by "Sycamore Valley Ranch LLC".
In other words Michael didn't put his main assets as collateral in AEG contract.


Michael owed over $300 M in loans for Sony/ ATV and Mijac. It was due to mature late 2010 or early 2011.
AEG deal made him responsible for the production costs as well which was over $30M.

Ps: Neverland deal might not be something that he needs to pay back. Because Colony Capital got 12.5% of Neverland ownership and 100% equal use rights of Neverland in exchange for $23M they gave.

Thank you. It just seems so many things. Is that normal to have his assets divided like that? Would he have paid his loan back? That is a lot of money.

 

[elusive moonwalker]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

I would think its normal. its not good to have all your eggs in one basket. if i remember right he created alot of trusts to protect his assets from lawsuits

 

[Autumn II]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

In response, I'd say, COMPARE the contracts. Just that. Compare them, to see what Tohme did or did not do for Michael? (and yes, I DID read the unredacted contract. Of COURSE I did.) If anyone can do a comparison with other contracts in the entertainment business, them bring it ON. My own opinion is, that Michael was boxed in, with Tohme as the perpetrator. If anyone else can present a counter-argument, then bring it ON, with factual information.

I'd say, just LOOK AT another contract. Or, entertain the possibility that the AEG contract, was horrible.

Michael DIED, ok? All I'd say there, is to keep OPEN minds, and if you do not? Why NOT? We loved him. Right?

 

[legacylegacy7]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Michael's Neverland Merger

When Michael Jackson made his Neverland business deal once again everything was twisted by the media with the most important parts (favorable to MJ) left out. Contrary to what many believe Colony Capital did not take over Neverland. Michael simply signed the deed over to a new company owned by him and Colony. The new company was Sycamore Valley Ranch the original name of Neverland.

For this deal:

Colony paid Michael Jackson $35 milion for making this merger. Colony also paid the remaing mortgage $23 million. The deal also made Colony Capital responsible for the upkeep of the property. Michael did not owe or pay Colony anything. A total value of well over $50 million for Michael Jackson not to mention what it saved him every month no longer having to pay for the property himself. Colony Capital would be repaid the $23 million if both parties decided to sell the property. Michael also retained rights to by it back 100 percent.

This was a deal that shows us exactly what Michael Jackson wanted. He obviously still loved Neverland and didn't want to sell it. Yet he didn't care to go there and didn't want to keep paying for it, so he took on a partner.

Another way to look at the deal MJ made is this. Who would want to continue paying the upkeep for a 2700 acre property that you have not been to in years and didn't care to visit. Imagine the monthly lanscaping bill alone.

"Give Michael Jackson Credit For his Estate"

 

[Petrarose]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Legacy thanks for that reminder^^.

 

[ivy]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Or, entertain the possibility that the AEG contract, was horrible.

and did anyone say it was perfect?

so it's not uncommon. However it shows that AEG did not necessarily have positive opinion to start with and that they probably considered Michael as a high risk and unknown demand. I wouldn't expect to see such agreement for an artist that's at Michael's caliber.

As a Michael Jackson fan , I'm unhappy with the rather crappy - we see you high risk, unknown popularity demand - contract.

At no point I called the contract a "good" contract. On the contrary I called it a "crappy" contract that I wouldn't expect to see for an artist at Michael's level. So everyone acknowledges what you are saying.

However similar low risk approaches by organizers aren't something new either and if you realize that music organizers aren't fan clubs and they do what's best for them, it shouldn't be surprising to see such deals.

I also agree with you saying that Michael's representatives such as Tohme whose job was to ensure that Michael got the best deal should be held responsible for such crappy deals.

 

[passy001]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Michael's Neverland Merger

When Michael Jackson made his Neverland business deal once again everything was twisted by the media with the most important parts (favorable to MJ) left out. Contrary to what many believe Colony Capital did not take over Neverland. Michael simply signed the deed over to a new company owned by him and Colony. The new company was Sycamore Valley Ranch the original name of Neverland.

For this deal:

Colony paid Michael Jackson $35 milion for making this merger. Colony also paid the remaing mortgage $23 million. The deal also made Colony Capital responsible for the upkeep of the property. Michael did not owe or pay Colony anything. A total value of well over $50 million for Michael Jackson not to mention what it saved him every month no longer having to pay for the property himself. Colony Capital would be repaid the $23 million if both parties decided to sell the property. Michael also retained rights to by it back 100 percent.

This was a deal that shows us exactly what Michael Jackson wanted. He obviously still loved Neverland and didn't want to sell it. Yet he didn't care to go there and didn't want to keep paying for it, so he took on a partner.

Another way to look at the deal MJ made is this. Who would want to continue paying the upkeep for a 2700 acre property that you have not been to in years and didn't care to visit. Imagine the monthly lanscaping bill alone.

"Give Michael Jackson Credit For his Estate"

But the Executors are saying that the deal is extremely unfavorable to MJ and even limits his use of the Ranch. In fact they believe that the deal could have been negotiated under better terms for MJ. so I'll go with the executors' version of the story.

 

[Autumn II]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

However similar low risk approaches by organizers aren't something new either and if you realize that music organizers aren't fan clubs and they do what's best for them, it shouldn't be surprising to see such deals.

Of course. The concert organizers are a business. Which is why it was so important for Michael to have independent counsel. Instead, Tohme's own attorney looked over the contract, and apparently Michael's interests were not represented. What IS surprising is to see such a deal being made for Michael. And of course, now we know that the concerts sold out almost immediately. I happen to agree with the points the executors made in their lawsuit. Just using common sense to look at their claims, I really don't think Tohme is going to win this one.

I also agree with you saying that Michael's representatives such as Tohme whose job was to ensure that Michael got the best deal should be held responsible for such crappy deals.

What Tohme did TO Michael was a fail, pretty much on all counts.

 

[Bonnie Blue]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

When Michael Jackson made his Neverland business deal once again everything was twisted by the media with the most important parts (favorable to MJ) left out. Contrary to what many believe Colony Capital did not take over Neverland. Michael simply signed the deed over to a new company owned by him and Colony. The new company was Sycamore Valley Ranch the original name of Neverland.

For this deal:

Colony paid Michael Jackson $35 milion for making this merger. Colony also paid the remaing mortgage $23 million. The deal also made Colony Capital responsible for the upkeep of the property. Michael did not owe or pay Colony anything. A total value of well over $50 million for Michael Jackson not to mention what it saved him every month no longer having to pay for the property himself. Colony Capital would be repaid the $23 million if both parties decided to sell the property. Michael also retained rights to by it back 100 percent.

This was a deal that shows us exactly what Michael Jackson wanted. He obviously still loved Neverland and didn't want to sell it. Yet he didn't care to go there and didn't want to keep paying for it, so he took on a partner.

Another way to look at the deal MJ made is this. Who would want to continue paying the upkeep for a 2700 acre property that you have not been to in years and didn't care to visit. Imagine the monthly lanscaping bill alone.

I'm sorry but i'm with passy, i really disagree that this is a deal which was 'exactly what mj wanted'. I'm normally v defensive of mj but there is no way i can deny he was in severe financial difficulties at the end of his life. Just going by common sense this neverland deal couldn't have been a brilliant coup for mj - he was negotiating from a position of weakness, neverland was about to be foreclosed on him and put up for auction - it was all over the news and wd have been a real blow to mj's pride and maybe to the rest of his financial holdings. All his other assets were heavily leveraged up with loans and who did he appear to have on his side to protect his interests but tohme tohme (so good they named him twice!). Barrack on ther other hand was acting the part of saviour, had plenty of cash and was some type of uber successful real estate tycoon - i would say he would be the one getting the great deal.

Colony captial may only own 12.5% of neverland but they appear to have equal rights to usage of the whole estate, mj's estate can't do anything with this huge asset without their sayso and presumably any value made out of it will be split 50/50. Didn't branca say when talking about elvis's estate that 50% revenue comes from graceland, neverland could have a huge revenue potential as mj's home. Also if a decision is taken to sell, colony captial have to agree and prob demand extra payment for this and if it is sold, tohme gets to have 10% of the purchase price! This was a deal that mj wouldln't have wanted to make.

Edit - forgot to add that the deal included mj paying $2.3m to tohme for introducing him to his old next door neighbour.

 

[Annita]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

I have never read something where Bancas says something about the future of the Neverland-Ranch.

Well, he mentions the Neverland-Museum in Mandaly Bay and said something about that will be a possiblity for fans to see something from Neverland.
But I can`t imagine that he really thinks this will be a real substitute for fans.

 

[Bonnie Blue]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

The estate are probably waiting to get the ownership issue resolved with this tohme lawsuit and hoping to find irregularities in the deal that was made in may 08 by tohme before they can decide what to do with the ranch. Otherwise it looks like some venture capitalists who were able to get a claim on the ranch when mj at his lowest will be the partners for any future estate endevour regarding neverland. Found this article from 2011, barrack is just sitting pretty -


On his plans for Michael Jackson's Neverland Ranch:

"Our plans have been to work to restore it to its original greatness. The place is amazing. It has not only the beautiful spirit and softness of Michael, but a legacy of a thousand years of Indian culture that had transacted upon it. We have just been restoring it, renovating it. We have not really wanted to do anything commercial with it. The estate of Michael Jackson--they have done a great job in managing the estate. We are kind of waiting for them to decide what really they would like to do with us and with it. We are just being good stewards of a very special place."

Read more: http://www.benzinga.com/news/11/03/9...#ixzz1GDepG7ZX

 

[legacylegacy7]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

-Colony Capital paid Michael Jackson $35 million for making the merger.

-Colony also paid $23 million for the mortgage

-Colony also became responsible for the upkeep of the property

Jackson gained a lot from the deal and he even said so himself. If the Estate thinks he should have received more that would be interesting to hear but they are suing Thome. The Estate has a huge problem with Thome hooking himself up with a huge finders fee when he already had knowledge of or some connection with that company. Thome cut himself a deal that would pay him 10% if Neverland were sold and 10% of any future venture or project that came from Sycamore valley Ranch. He basically made himself a permanent partner in a company owned by MJ and Colony Capital. That would be "unfavorable" financially and explains why they are suing Thome.

 

[AliCat]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Raymone Bain pretty much set herself up, thinking that working for Michael would prove lucrative. In court it didn't go that way. She was terminated by Michael and she signed the agreement and received the monies and saying she did all these things for Michael and that in December of 2007, different financial dealings were going on that she was a part of and she should be entitled to those things, even though she signed her termination with Michael in December of 2007.

Thome Thome was fired by Michael before he died. He sounds very similar to Raymone Bain in that they are the Super Power behind Michael's Throne. Now we know why both Thome Thome and Raymone Bain were both terminated. They didn't live up to all their hype that they convinced Michael about! Bye Bye lawsuit of Thome Thome. You just weren't worth the monies because you really didn't do anything. Like Raymone Bain, Michael tried you out as a Business Manager and Michael decided that you weren't as good as Frank Dileo and so you were terminated for good.

Who cares if Jermaine Jackson was hugging Thome Thome after the Press Conference. They can be business partners, but not to the Michael Jackson Estate.

 

[passy001]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

-Colony Capital paid Michael Jackson $35 million for making the merger.

-Colony also paid $23 million for the mortgage

-Colony also became responsible for the upkeep of the property

Jackson gained a lot from the deal and he even said so himself. If the Estate thinks he should have received more that would be interesting to hear but they are suing Thome.

Why would Colony Capital pay that kind of money to MJ? What do they get in return? It's obvious you don't know the terms and conditions of the deal. MJ was duped and had no idea. That's the real problem here. The executors explicitly mentioned that the deal was in many ways very unfavorable to MJ and that they were many other options available to avert a foreclosure. It's not just about how Tohme was rewarding himself, but it's also about how the deal was structured to favor Colony Capital at the expense of MJ. The executors have the contract in papers so they know a lot more than a mere simplification presented here.

 

[legacylegacy7]

Re: MJ Estate sues Tohme Tohme / Tohme countersues / Tohme's complaint @pg 14

Passy

Are you saying Colony did not pay that?