Jacksons vs AEG - Day 21 – May 31 2013 – Summary
Katherine and Rebbie Jackson are at court.
Paul Gongaware
AEG Cross
Putnam asked Gongaware if he had any understanding as to why MJ was taking painkiller. Gongaware: Before 3rd leg of Dangerous tour started, he had scalp surgery, hit nerve or something it was very painful; was treated for that . "When he did the Pepsi commercial, his hair was burn at the top," Gongaware explained, saying they did surgery so hair would look natural. "I didn't know it was an addiction," Gongaware said, and that he learned MJ had drug problems after Mexico City. (ABC7)
Gongaware did a Rod Stewart tour in North America after Dangerous tour. He next worked with Michael in the "HIStory" tour in 1996/97. (ABC7)
Gongaware said he did not have a general concern with MJ having a drug addiction. After shows ended in Hawaii, Michael had lost $27 million, was in debt $11 million to lighting and sound, Gongaware testified. He switched managers to fixed things up in yhe second half of the tour, Gongaware explained. Gongaware said he had to cut lot of expenses. They wanted to give Michael the same show, but he said there was so much excess to be trimmed. Second half of the tour, Gongaware was the tour executive and he worked directly for MJ. It netted $14 million, $11 million paid vendors. We got the tour to break even, Gongaware testified, saying he worked closely with Jackson on the second half of the tour.(ABC7)
Putnam: Was there an ongoing concern Mr. Jackson was having problems with painkillers during the HIStory tour? Gongaware: No, not at all . Gongaware said he didn't see anything that would suggest Michael was addicted to painkillers. The exec testified MJ didn't have doctor traveling with him on the second half of the tour and there was no tour doctor with the tour. Putnam: How was MJ on the HIStory tour? Gongaware: Great! He was sensational! Gongaware said MJ only missed one show on HIStory tour when Princess Diana died. "He went to bed, knew about the accident.". MJ was told Diana was going to be okay and next morning he learned she died, Gongaware described. "That affected him greatly." Gongaware said he missed shows in Dangerous tour but not in HIStory tour. Putnam asked if there were signs MJ was using painkillers during HIStory tour. "No indication at all. I didn't think he was," Gongaware said. Gongaware said he would certainly notice if there was any problem during that tour. Gongaware said when he went on tour with MJ in HIStory, he wasn't on any drug. (ABC7) Gongaware also said he didn’t recall a doctor being on that tour, despite doctors being present on “Dangerous” tour. (AP)
Gongaware said HIStory tour was pretty smooth. It ended in 1997. Right after, Gongaware said Michael called him as asked him to work for him. "He liked my work, he liked what I did," Gongaware said, adding that MJ wanted him to be his business manager. Gongaware said he didn't accept the offer and decided to go out on his own to promote concerts. He was tempted, Gongaware said, but he had lined up what he wanted to do. He worked with Yani next. (ABC7) Instead, Gongaware went on tour with Yanni. “It was tempting, but I wanted to do other things. I wanted to be out on my own,” he said. (AP)
AEG defense attorney Marvin Putnam then asked Gongaware to describe the founding of his company, and its purchase by AEG. Gongaware had co-founded a new version of a company called Concerts West. After it was sold, it became AEG Live. (AP) Gongaware and his partner, John Meglen, created Concerts West in the late 90s. Concerts West started out with concerts of Andrea Bocceli, Mariah Carrey, Eagles and Millennium at Staples Center. AEG acquired the assets of Concerts West around 2000, Gongaware said, and Concerts West became AEG Live. Randy Phillips is AEG's CEO.Gongaware said he made a deal that requires him to work only half time starting this year. (ABC7)
Putnam then asked Gongaware about plaintiffs’ contention that AEG was desperate for “This Is It” because it wanted to pass rival Live Nation. “It’s so much bigger,” AEG Live exec Paul Gongaware said of Live Nation. “It is so much more complicated.” He said that Live Nation has to find artists to fill the many venues it owns, and that AEG Live doesn’t have that issue. (AP) Gongaware said AEG Live is the second largest concert promoter company. Live Nation is the first. "Our philosophy is different," Gongaware said, adding they choose what they want to do, whereas Live Nation has to meet their quota. Putnam: Wounded you like to be number 1? Gongaware: No. It's so much bigger, it gets so much more complex. I'm happy being a good number 2 (ABC7)
Next time Gongaware worked with MJ was in "This Is It" tour. Peter Lopez, MJ's attorney, called Gongaware's partner in 2007, asked to meet. From 97 to 2009, MJ did not do any touring, only a couple of shows. Gongaware said he went to Vegas to meet with Michael in 2007. The meeting was to discuss how AEG did tours, didn't talk about MJ touring. They met again in 2008 also in Vegas. "Paul Gongaware! I knew that if you came, things were going to be ok," Michael said about him. (ABC7) Gongaware said Jackson remembered him and told him re: “HIStory” tour, “Whenever I saw you, I knew things were going to be OK.” (AP)
Putnam asked about Gongaware’s use of the term “Mikey” to describe Jackson. Gongaware said he used it with Jackson. He described Jackson as getting in playful moods, and that’s when he would call Jackson “Mikey.” Said he wasn’t mocking him. (AP) Mikey was not meant as insult, Gongaware said. He was not trying to mock him, would use Mikey in person with MJ. (ABC7)
Putnam: Did he seem thin in 07? Gongaware: Yes, he was always thin
Putnam: Did he seem to have a problem with painkillers? Gongaware: No P: Did he seem to be under the influence? G: No (ABC7)
Gongaware said MJ was alert, engaged, interested on what was going on in the meeting in 2007. He wanted to do a King Tut mini-movie. The next meeting with MJ was in NY. Gongaware didn't remember what they discussed. Sometime in 08, they began discussion of MJ going back on tour. Dr. Tohme, MJ's manager, approached AEG. Randy Phillips was primarily the one involved in the discussions with Dr. Tohme and Peter Lopez regarding the comeback tour. The meeting in 2008 began with discussion of a possible MJ exhibit at the Hilton in Las Vegas. (ABC7)
Colony Capital is an investment company that bought the note of Neverland, Gongaware said. By 'note' he meant the 'mortgage'. Neverland was MJ's residence in Santa Barbara, Gongaware explained. "They (Colony) were trying to figure out what to do with Neverland." (ABC7)
Gongaware talked about being at MJ's house at Carolwood when the singer signed the contract with AEG for the "This Is It" tour. Michael read everything in the contract, Gongaware said. He remembered MJ being engaged, alert and paying attention. "He was good." "I felt great about it," Gongaware said. "It was a MJ tour, it was a great thing." Gongaware said he watched Michael pretty carefully in the meetings, he knew MJ went to rehab, but he didn't see any signs of drug problems. (ABC7)
Gongaware said he was aware of the physical exam done on Jackson after the signing of the tour.Email on 2/11/09 from Bob Taylor to Gongaware: Thanks Paul. I now have the medical and blood reports. Look good. I now need more info of what is available. This will help with the presentation to the insurers. Another request from insurance broker: I would like to offer insurers a medical update say every 21 days. Response from Gongaware: I'm not ready to put anything in writing. Gongaware said it was because he didn't have the answers. Gongaware said he did not have concerns with MJ abusing prescription drugs. "It just confirmed what I believed, that he was fine. He wasn't doing any drugs," Gongaware said about the results of Mj's physical exam. (ABC7) A February 2009 email between him and the insurance broker showed that insurers wanted med checkups on Jackson every 21 days. The broker also wanted details on the concert set, dates, and other details that Gongaware said weren't decided on yet. “The back to back shows WILL be a problem,” the broker wrote Gongaware. Suggested adding them in after Jackson started performing shows. (AP)
AEG produced/promoted TII tour. "We needed to front all the money," Gongaware said. "He didn't have the money, so he needed us to do it." Tohme, MJ's manager, told AEG about needing the money. Gongaware said Tohme emphasized several times that Michael needed to make money.Gongaware said MJ and Ortega figured out the creative elements they wanted and Gongaware had to figure out how to make those them happen. Gongaware said the initial phase of rehearsal was done at Center Staging in Burbank, but venue didn't have room for production elements. They moved rehearsals to The Forum, which didn't have high ceiling to hang the lights. Then they moved to Staples Center. (ABC7)
After the morning break, Gongaware said MJ chose "This Is It" tour as the name because it was going to be his last. Gongaware said they weren't sure how MJ tour would do. "Because of the kid thing, we wanted 2 go 2 the strongest market and that as London". Gongaware: You never know what kind of business a tour will do. We had no idea the demand, we wanted to make sure it was successful. Initially, they had 31 shows scheduled. Gongaware said Prince had done 21 shows at the O2 arena, and Michael wanted to do 10 more. "You didn't know what the ticket sales would be," Gongaware said. So they announced only 10 shows to test the waters. "Demand was there obviously in the presale," Gongaware said. He talked to Tohme, asked for more than 50 shows. Tohme said MJ would do 50. (ABC7)
On March 5, 2009, MJ held a press conference in front of O2 arena and announced the comeback tour. Gongaware was present. MJ was not on time, late a couple of hours. Gongaware said it didn't surprise him since MJ didn't like to do those things (press conference) Gongaware was a little annoyed but not surprised, he testified, "MJ came up to me, gave me big hug, whispered in my ear 'make sure the TelePrompTer has big words, I don't have my glasses'" Gongaware said. Putnam: Did he seem inebriated? Gongaware: No P: Drunk? G: No P: Smelled like alcohol? G: No. Gongaware thought the presser was great. "The reaction of the press was really good, I think people liked he was returning." Gongaware said they asked people to register on a website and only people registered could get into the presale to purchase tickets. He said that based on the response, they knew the tour was going to be a major successful. (ABC7)
Gongaware said he was annoyed but not surprised when Jackson showed up a couple hours late.
“Michael really doesn’t like to do those things," Gongaware testified. "His schedules don’t always run like clockwork."
The tour announcement took place at the O2. When Jackson saw Gongaware backstage, "he came up to me and gave me a big hug and said, 'Make sure the teleprompter has big words. I don’t have my glasses.'”
Gongaware said Jackson did not smell of alcohol or appear drunk.
“He was good," the AEG executive testified. "I think he was excited." (LATimes)
One day after that, Gongaware said MJ called him to discuss the tour. He said Michael chose Kenny Ortega to direct the show. MJ liked special effects, Gongaware said. He put together presentation for Michael with latest effects and made MJ promise he would show up. Demonstration was on 3/16/09 at Sony Studios. It had 3D on LED that was never done before, pyro and new type of flame. Putnam showed clip of TII documentary where they ave the pyro effects that were going to be used. "Jackson loved it," Gongaware said, adding MJ didn't seem to be bothered with pyro usage. Gongaware said there was a pretty cool water fountain effect shown and not used. "It was messy," he described. In the demonstratiin, MJ was great, Gongaware said. "He was really engaged, as he saw all the effects he got really excited." Gongaware said he had no concern MJ had drug problems, didn't seem slow or lethargic in March of 2009. A meeting was scheduled for March 17, 09. Gongaware emailed MJ's assistant that only MJ and Kenny Ortega should be in that meeting. MJ and Ortega were the creative forces and needed to find the show's path before including everyone else, Gongaware explained. (ABC7)
Regarding Kenny Ortega watching out for MJ's health, Gongaware said no one at AEG asked him to do that. Gongaware thought Ortega watched MJ out because they were friends and worked together. (ABC7)
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Gongaware will join The Rolling Stones tour this weekend, but will return on Monday to resume testifying.