Jacksons vs AEG - Day 27 – June 11 2013

Jacksons vs AEG - Day 27 – June 11 2013 – Summary

Katherine Jackson was present court for the morning session.

Randy Phillips Testimony

Jackson direct


Phillips said on Jun 25, the day MJ died, he was going to head to Staples Center, had no intention of going to Carolwood or pick up MJ. (ABC7)

Much of the questioning centered on Jackson's manager relationships and “This is It” production costs. Panish focused on a letter that Phillips sent to Jackson’s former manager Tohme Tohme on June 28, 2009, three days after MJ died. The letter, signed by Tohme, was to confirm the Michael Jackson Co. was responsible for all the production costs for “This Is It.” (AP)

After MJ died, Phillips said Jackson's costs had exceeded $7.5 million. MJ was responsible for production costs, according to the contract. Phillips said he was not sure if MJ was the sole signatory to approve the costs or if Dr. Tohme had power of attorney as well. On the contract, it said the undersigned Dr. Tohme Tohme represents and warrants that he is an officer of the Artist. Phillips said he didn’t have any information that anyone else could sign and approve the expenses on behalf of MJ. (ABC7)

Panish also showed Phillips a letter signed by Michael Jackson on May 5, 2009, terminating Tohme’s authorization to act on his behalf. Randy Phillips said on June 28, 2009, he wasn't sure whether Tohme had authority to act on Jackson’s behalf or not. Tohme signed and returned the authorization to AEG Live, but Phillips said he didn’t know how quickly that happened. (AP)

Phillips said he received a note where MJ said Dr. Tohme was no longer his representative. Panish: Did you get anything confirming that Dr. Tohme was back in as an agent? 
Phillips: No (ABC7)

Phillips said he didn’t read a budget of production costs that was attached to June 28 letter. Budget had $450k allocated for Conrad Murray. (AP)

Phillips said he was concerned with MJ's weight during rehearsals. He asked his friend Loughner to assist getting Michael to eat.
Email on 7/16/09 from Phillips:
We all were worried about MJ's weight which was 130 Ibs during rehearsal and encouraged him to eat properly since he was so obsessed w/ the creative on the show he would either meals or forget to eat. Kenny Ortega used to personally feed him and I hired a person to be his "food" person. (ABC7)

Panish: It says you hired a person just to be his food person
Phillips: Didn’t hire him, just did it as a favor
Phillips said his friend never got paid to be MJ's "food person". (ABC7)

Panish asked Phillips about lucrative merchandising opportunities for AEG Live after Jackson’s death. He showed executive an email he wrote. (AP)

Email on 8/4/09 from Phillips:
Michael's death is a terrible tragedy, but life must go on. AEG will make a fortune from merch sales, ticket retention, the touring exhibition and the film/dvd. I still wish he was here! (ABC7)

AEG Live CEO Randy Phillips told jury he did wish that Jackson was still alive. (AP)

In a later email, Phillips stated that profits from the sales would go to Jackson's mother, children and charities. About pressuring Jackson to perform, Phillips noted that Jackson died before he had performed a single show. (KABC)

As to Dr. Tohme: Phillips testified in the Labor Commission hearing in a dispute between Dr. Tohme and MJ's estate. (ABC7) Phillips testified at Tohme Tohme’s hearing before the Labor Commission in a dispute with Michael Jackson’s estate. At the hearing, Phillips testified that Tohme wasn't a traditional music manager, and he didn't have a staff. Phillips: “I don’t even know where his office was other than the bar at the Bel Air Hotel.” Some of the jury laughed when this was shown. (AP)

Phillips was then asked about Tohme’s contract, which called for him to “assist promoter in the production of tour events.” Tohme’s $100k a month contract was signed by Phillips and Michael Jackson. Phillips said fee would be paid as an advance to Jackson. Panish asked whether Tohme’s contract was a conflict of interest, since he was representing both AEG and Jackson. Phillips: “Actually, no. Michael Jackson signed this document so he must have agreed to it.” (AP)

Panish asked if it's common to ask artist manager to follow promoter's directions. Phillips responded it was done with MJ's consent. AEG had an agreement to pay Dr. Tohme $100k per month to be MJ's manager.

Panish: Does it seem to be a conflict of interest for artist manager to take direction from producer? Phillips: Actually no, because MJ signed this document, so he must've agreed to it (ABC7)

Phillips said he wanted Michael to have somebody to manage him, because they needed somebody to deal with on his behalf. (ABC7)

Panish asked if MJ became more anxious as tour approached. "In my opinion, I never witnessed Michael being anxious," Phillips testified. (ABC7)

Phillips said Michael never told him he had sleeping problems. (ABC7) Panish asked Panish several questions about whether Jackson ever told him he had a sleeping disorder. Phillips said no each time. (AP)

After the lunch on May 4, Phillips said he had one phone call with Dr. Tohme, but they never discussed this case, Phillips said. (ABC7)

AEG Live CEO Randy Phillips was also asked whether he ever saw a signed agreement for Frank Dileo to work as Jackson’s manager. Plaintiff’s attorney Brian Panish showed a May 2, 2009 letter signed by Jackson indicating that Dileo was one of his representatives. The letter included the curious phrasing that Dileo could conduct business on Jackson’s behalf “only when instructed.” AEG exec Paul Gongaware wrote Phillips: “This is a bit strange. “Only when instructed”? How are we to know?” Phillips replied that they’d need a signed contract or letter with Jackson authorizing that Dileo could be paid a $50k advance. Gongaware replied, “We just sign off and pray.” That led Panish to question if that’s how AEG did business. Phillips said no. (AP)

As to Frank DiLeo: Phillips said Frank DiLeo asked AEG to advance him $50,000, and he believes MJ approved it.
Phillips wrote in an email: "I think we need to, but I am not sure how without a contract in place or MJ directing us to via signed letter."
"We just sign off and pray," Gongaware responded.
"But what we apply it against," Phillips wrote back. Phillips cont'd: "I think we need MJ to acknowledge for our record and direct us. You know he has amnesia when it comes to paying people." (ABC7)

Phillips reiterated how difficult it could be to figure out who was authorized to act on Jackson’s behalf. Phillips: “You needed a scorecard to keep track of who was in and who was out.” (AP)

Panish asked Phillips about statements he made regarding Jackson lacking representation in June 2009. He showed him an email Phillips wrote. Phillips email: “... we still have no lawyer, business manager, or, even, real manager in place. It is a nightmare!” Panish noted that Phillips in the email meant that Tohme Tohme wasn’t a real manager for Jackson. (AP)

Phillips said he believe MJ must've had a lawyer on June 2, 2009. He said MJ used different lawyers for different things.
On 6/2/09, Phillips wrote to Jeff Wald (maker coffee table books):
Jeff, remember getting MJ to focus is not the easiest thing in the world we still have no lawyer, business manager, or, even, real manager in place. It is a nightmare! (ABC7)

The lawyer showed Phillips emails in which Kathy Jorrie, an attorney working for AEG, expressed doubt about Tohme. She said she was concerned and whether he was “the real McCoy.” She also recommended a background check on Tohme. Phillips said he trusted Tohme based on how he treated Michael Jackson. He said he thought at the time, he did a “phenomenal job.” (AP)

In an email at the time Jackson was preparing for his “This Is It” comeback concerts, an AEG lawyer said she had questions about whether Tohme was "the real McCoy" and suggested the company hire a private investigator to do a background check on Tohme "and/or at a minimum, that someone at AEG Live meet withMichael Jackson to make sure he understands that we are entering into a tour agreement with him that will require him to perform a worldwide tour….” Phillips expressed some of the oddities of dealing with Tohme when he testified before the state labor board in the sometime manager's claim against Jackson's estate. “Dr. Tohme was not a traditional music manager," Phillips said at the hearing. "I don’t even know where his office was other than the bar at the Bel-Air hotel.” Still, Phillips said he thought Tohme did a "phenomenal job" for Jackson. "He is a good guy who has done miracles for MJ, just not a manager," he wrote in an email. (LAtimes)

Phillips said he didn't mean to say that Frank DiLeo wasn't a real manager. Phillips said he didn't act as MJ's manager. Panish asked if crisis management is responsibility of personal manager, he said lawyers do it. (ABC7)


Part of the agreement with Michael was that AEG would buy a house in Las Vegas for the artist. (ABC7)

Before concluding his questioning Panish asked Phillips about emails he exchanged with music executive Irving Azoff. In one of the emails, Phillips asked Azoff the “odds” of Jackson making it through 50 concerts at London’s O2 arena. Azoff’s replied that having insurance was key. “You are a genius on this one dude,” he wrote Phillips. (AP)

Panish asked Phillips whether he was trying to act as Michael Jackson’s manager before the singer’s death. Phillips said no. Panish cited Phillips trying to manage several lawsuits Jackson was facing and other business transactions. Randy Phillips denied he wanted to be MJ’s manager, or that his actions were manager functions. (AP)

Panish’s final question: “You felt it was exhausting taking care of all of Michael Jackson’s affairs?” (AP) “ I did not deal with MJ's affairs, but dealing with MJ was exhausting," Phillips explained. (ABC7)


AEG Cross

Putnam showed an email that Phillips sent to Jackson’s assistant, Michael Amir Williams, arranging a meeting to discuss various deals. Topic included the purchase of Neverland, settling a lawsuit over Jackson memorabilia and a perfume deal. Phillips said the meeting was arranged at the request of Frank Dileo. (AP) Frank DiLeo was the person Phillips dealt with on behalf of MJ, the exec said. (ABC7)

Putnam: “You’ve indicated that dealing with Michael Jackson was (pause) challenging.” Phillips: “Michael was mercurial. It was one of the things that made him great. It was also one of the things that made him impossible to do business with. He would change his mind. He would change representatives -- like we change our socks.” (AP).

Asked to explain, he said, “Because Michael was mercurial. One of the things that made him great was also one of things that made him impossible.” “He would change his mind. He wanted different things at different times. He changed representatives like we change socks." Phillips testified you needed a "score card" to keep track of Jackson's shifting group of representatives.(LATimes)

"Michael was imperial, which made him great but also impossible to deal with," Phillips explained. Phillips: He (MJ) would change his mind, want different things at different times 
Phillips: He would change reps as he changed socks, we needed score card to know who was representing him. (ABC7)

Putnam asked Phillips why he didn’t stop Jackson from changing reps. “How would I do that,” Phillips replied. AEG Live CEO Randy Phillips said he could not dictate who Jackson hired at all. (AP)

Putnam: Could you dictate who MJ hired?
Phillips: No (ABC7)

Putnam asked Phillips about several people involved in Jackson’s business affairs. He asked about estate executor John Branca. Phillips recounted their history, that Branca had represented Jackson for part of his career, but the pair had a falling out. “Michael brought him back in,” Phillips said of Branca, just before the singer’s death. Katherine Jackson shook her head. (AP)

Putnam then asked Phillips about Tohme Tohme. Phillips said he saw Jackson and Tohme as having a close relationship. (AP) "Dr. Tohme was introduced to me as MJ's manager," Phillips said. Phillips said MJ and Dr. Tohme seemed to have a very close relationship and Dr. Tohme seemed to care very much about MJ. Dr. Tohme was introduced to MJ by Jermaine Jackson, Phillips said. There was a familiarity between all of them, he said. Phillips said MJ wanted to get 'back on the saddle', so Jermaine introduced him to Dr. Tohme. "He said Michael was determined to restart his career," Phillips said Dr. Tohme told him. "It was time for a comeback," he recalled hearing. "The only way I dealt with MJ was through Dr. Tohme," Phillips said. Phillips said AEG never paid Dr. Tohme because there were conditions in the contract, like getting insurance for the show, that were not met. Also, Phillips said he received MJ's letter terminating Dr. Tohme. "Dr. Tohme obviously could not fulfill his obligations then." Phillips testified MJ told him Dr. Tohme was to handle some of his business affairs, like purchase house in Vegas, and work with Frank DiLeo. MJ said DiLeo would be dealing with the entertainment part of his career and stuff MJ thought Dr. Tohme was not qualified to do. (ABC7)

Phillips said there are three ways AEG Live checks out people it does business with. Phillips said no reference/background check is needed if the person has done business with AEG Live before. The company checks references of people who it hasn’t done business with, Phillips said. If someone is referred directly by the artist, Phillips said no check would be done. That was the case with Tohme. (AP)

Putnam then showed Phillips Tohme’s agreement for $100k a month. Phillips noted that Jackson signed the agreement. Phillips noted that Tohme’s contract was predicated on him getting cancellation insurance, which didn’t happen in time. Phillips said to the best of his understanding, Tohme was never paid by AEG Live. (AP)

He said that about 10 days before Jackson died, the singer asked to see Tohme. Phillips said it was his understanding that Jackson wanted Tohme to handle some of his business affairs, including buying a home in Vegas. He said that the plan was for Tohme and Dileo to work together as Jackson’s managers. (AP)

Phillips recounted a meeting at estate executor John Branca’s office after Jackson died. He said a concert expense ledger was requested then (AP). After MJ died, Phillips said MJ's Estate wanted a detailed expenditure of the production. (ABC7) On the tour production expenses that Tohme approved was only part of the expenses. He said Dileo signed a similar document. The production expenses were eventually submitted and approved by Jackson’s estate, Phillips said. (AP)

Putnam then asked Phillips about a meeting the pair had with Tohme and his lawyer a few weeks ago at the Polo Lounge in Beverly Hills. Phillips said Tohme’s lawyer wanted to meet with them. By that point, Tohme said he’d already met with Katherine Jackson’s lawyers. Phillips said he didn’t directly discuss the case with Tohme, but wasn’t surprised that the lawyers wanted to discuss it, given the stakes. (AP) As to meeting at the Polo lounge, Phillips said he received a call from Dr. Tohme asking to meet since he had already met Jackson's attys. Phillips said he picked the Polo lounge because it was a convenient and public location. (ABC7) Phillips said lunch meeting lasted about 90 minutes, but he left the table for about half of the meeting to talk to other people. Putnam asked Phillips if there was some secret reason for meeting with Tohme. Phillips: “If it was going to be secret, it wouldn’t have been at the Polo Lounge, it would have been in someone’s offices.” (AP)

After lunch break, Putnam asked Phillips if he met with his attorney over lunch hour. All the jurors laughed loud. This is how Panish begins after lunch.
Putnam: Did they show you any documents?
Phillips: Just the menu (ABC7)

After the lunch break, defense attorney Marvin Putnam asked Phillips a few questions that Panish likes to ask after every break. Putnam: "Did you meet with your attorneys over lunch?" (the jury laughed.) Phillips said yes. Putnam: "Did they show you any documents?" (Another question Panish often asks.) Phillips: "Just the menu." There was more laughter. (AP).

Phillips said Estate of Michael Jackson asked him to be witness for them in the Labor Commission dispute between Dr. Tohme and MJ's estate. (ABC7)

Phillips testified about a conversation with Brenda Richie, Lionel Richie’s ex-wife. Phillips used to be Lionel Richie’s manager, and he says Brenda Richie called him a few weeks after Jackson died. This first came up Monday in questioning by plaintiff’s attorney Brian Panish, who asked why Phillips didn’t disclose conversation to police (AP) "Yes, I served as his manager for 10 years," Phillips said about his relationship with Lionel Richie. Brenda Richie is Lionel's ex-wife. (ABC7) Phillips had written an email to an AEG spokesman on Aug. 18 after Murray released a videotaped statement. Phillips email: “I wonder why now. I think I know what MJ died of and this would exonerate Conrad.” Panish asked if he had info to exonerate Murray, why he didn’t call police. Phillips said info came from Brenda Richie, but didn’t elaborate. He would only say the information was somewhat weird. (AP) Putnam inquired about email Phillips sent to AEG's publicity rep on 8/18/09: I think I know what MJ died of and this would exonerate Conrad. "Brenda had called me to tell me that she was in communication with Michael either through a medium or directly," Phillips testified. Panish objected: triple hearsay! Courtroom bursted into laughter. Phillips said Michael told Brenda that it wasn't Dr. Murray's fault and he had killed himself. "I told you it was weird," Phillips expressed. Putnam asked why he didn't tell LAPD what Brenda said. "I didn't want to be in that straight jacket Dan was talking about," Phillips said. Phillips clarified he didn't think it was relevant information. (ABC7) It wasn’t until Putnam’s questioning today _ over Panish’s objections it was hearsay_ that Phillips told the jury what Richie told him. Phillips said Richie told him she had communicated with Jackson _ either directly or through a medium. Panish objected again. “Double, triple hearsay,” he said. Lots of laughter in the courtroom, among jurors. The judge commented the testimony was “clearly not offered for the truth.” Phillips: “I said it was weird.” Phillips testimony: “Michael told her it was wasn’t Dr. Murray’s fault. He accidentally killed himself.” Phillips said he didn’t tell police because he didn’t want to end up in a strait-jacket, as some AEG execs feared he might over tour issues. (AP)

Putnam showed a letter signed by MJ on June 9, 2009 requesting AEG to advance the sum of $50,000 to Frank DiLeo. (ABC7)

Phillips said his deposition happened three and a half years after MJ died. He believed there were over 9,000 email turned over. In preparation for his testimony, Phillips said he watched his testimony given in Dr. Conrad Murray's criminal case. Phillips said he prepared himself prior to his deposition, but not like he did for testifying in court. Phillips said he didn't believe he knew what emails were going to be used, thus he didn't want to read everything they produced. Phillips explained he has had time to look over all the emails in detail since his depo, therefore he was able to remember the events better."We are not a very litigious company," Phillips clarified. "I did not realize there's that 'gotcha' politics, 'gotcha' legal process." "Even though you know the answer to a question, you want the person to use it wrong so you can use it against them," Phillips opined. Phillips said he was not designated as PMK (person with most knowledge) or PMQ (person most qualified) for AEG. Phillips said he made only one substantive correction to his deposition transcript. (ABC7)

Phillips said he's the president and CEO of AEG Live. Phillips said AEG Live has at least 10 divisions, deal, with talent, produce shows, international tours, festivals. In college, Phillips became the director of special events for students association. He graduated from Stanford in Political Science. He went to law school at University of Santa Clara. Phillips promoted the Harlem Globetrotters. One of the stars asked to manage him. Phillips said he thought it was a good move to start his career, moved to LA, transferred to Loyola Law School. He started management career with Management West International, then worked at Stiefel & Phillips through 1996. He managed Rod Stewart and Matthew Brodrick. Then they repped Guns N Roses, Toni Braxton, Prince, Simple Minds, Morrisey. (ABC7)

Phillips worked with MJ at this point. He represented the artist in an endorsement deal and a line of sneakers. "He was hot as a pistol," Phillips described MJ. "This was in early 90s, right before History"."It was one of the biggest endorsements made at the time," Phillips said. "The deal was a success." Phillips said the line of sneakers was not successful, though. The company he made the deal was LA Gear. "When MJ didn't like something, he was less than demure," Phillips testified. "Some of the shoes was really quite hideous," Phillips said. "Let's stop this s**t, it's ugly, they don't know what they're doing, this stuff is s**t, they're going to ruin me" Phillips said MJ reacted. Phillips described MJ as 'incredibly sharp' doing business. After the LA Gear deal, MJ and John Branca asked Phillips to manage MJ. He said no. His next dealing with MJ was not until 2007.(ABC7)

Phillips left Stiefel and Phillips to work at Red Ant Entertainment from 96 to 99, continued to co-manage Toni Braxton. Managed group called Dream on Puffy Combs Label. Then approached by John Meglan and Paul Gongaware to start Concerts West, now AEG Live. "They wanted me to help them secure a tour with an artist named Britney Spears," Phillips explained. Phillips said he had a very good relationship with her manager at the time. It was the first big break tour of Britney Spears. Phillips was consultant on the tour and had a piece of the profits. After the tour, Leiweke asked Phillips to consider in-house position. Phillips wrote the business plan over the weekend and became the president and CEO of AEG Live in 2001. Phillips said AEG Live created Coachella festival. They used the infrastructure, equipment for another genre of music, Stagecoach festival. Phillips talked about the residency shows AEG Live promotes in Las Vegas: Celine Dion, Elton John, Cher, Shania Twain, Rod Stewart. Phillips said AEG Live promoted and produced Prince's most successfully tour, "Musicality" in 2004. Phillips testified they produced and promoted Prince's 21 sold out Nights at the O2 arena and residency show in Vegas at Rio Hotel in 2006. (ABC7)

Artist management team: attorney, business manager, agent, broker, personal manager, generally four people, Phillips explained. Phillips said there are two ways a tour begin: once artist releases new album, Phillips goes to the artist team and pitches the company. Other way is management of an artist pitches the tour to AEG. "My job is to go and actually sell the concepts and ideas," Phillips said. He described himself as "schmoozer in chief". (ABC7) Phillips noted that he’s a salesman. He sells ideas for concerts, festivals. “I’m Schmoozer in Chief,” he said. A few jurors smiled. (AP)

Phillips said superstars who fill up big arenas, like Staples, work on a 90-10 split, where 90% of profits goes to artist, 10% to promoter. Once he wins the bid, Phillips passes the deal on to someone else within AEG Live better prepared to handle it. "I don't think I sit on this throne," Phillips explained. "We have a very open decision-making process at AEG Live. "I'm like manager's promoter, I think like a manager, I think in term of the brand itself," Phillips explained. Phillips has deal w/ AEG Live where he's allowed to manage 2 acts, Dream and Lionel Richie. Dream dissolved, AEG allowed him to manage Usher. Phillips said Live Nation is about three times bigger than AEG Live. They are competitors when it comes to touring. "I think we're a better company," Phillips opined. He said Live Nation is in the amphitheater business and AEG is strictly an arena touring. In interview w/ Telegraph, Phillips said AEG Live was under assault by 800lb gorilla called Live Nation, planning to merge w/ Ticketmaster. "Number 1 doesn't necessary make you the most profitable," Phillips said. "Why take all this risk in deploy capital in this way if you're not to make a profit?" Phillips explained. "I don't particularly love music, that's not why I got into it. I love the deal," Phillips testified. It's difficult as it can be to deal with the artists, but Phillips said he loves the challenge. Phillips said he is told all the time to just follow their business plan and not even look at Live Nation. It is a competitive business. (ABC7) He then said explained why he is in the business. He said he doesn’t necessarily love music. “I love the deal. I love the action,” he said. Phillips said he has to deliver good news and bad news to artists. He said some musicians want big productions, but also big profits.(AP)

He described AEG Live’s relationship with Live Nation, a competitor and larger concert promoter. Phillips said Live Nation is also one of AEG Live’s biggest customers, since it rents AEG’s arenas. Live Nation owns only open-air venues. Phillips re-iterated a point Paul Gongaware made previously, that AEG Live doesn’t want to be the No. 1 concert promoter, they say. He noted that Live Nation is a publicly-traded company and has to answer to shareholders, investors. AEG Live does not. (AP)

Putnam then asked Phillips about the upcoming BET Experience music festival. Beyoncé is scheduled to perform. So are the Jacksons on June 30. The BET Experience is being promoted by AEG Live. (AP)

AEG Live is working on a BET Music Festival on June 28.
Friday: Beyonce, more mainstream artist Saturday: Snoop Miguel and Kendrick Lamar, younger crowd
Sunday: Adult contemporary: R Kelly, Boyz to Men, The Jacksons.
"We book them," Phillips said. Deal was done by someone else at AEG Live, who will be promoting and producing this festival. (ABC7)

Phillips talked about the difference between promoting and producing. MJ didn't have touring team or money to produce "This Is It" tour. Phillips said it's very expensive to keep everyone on staff if you're not touring regularly. Jackson hadn't toured for many years. (ABC7)

AEG Live is promoting Justin Bieber world tour. It will be 130 shows over 14-15 months. "It's a very substantial amount," Phillips said. AEG promoted The Rolling Stones, 21 shows. Putnam asked why the difference in the amount of shows. "He's 19, Mick Jagger is 70," Phillips responded.Rolling Stones sales is gigantic, so they don't have to do as many concerts. (ABC7) After a break, Phillips testified about how different tours work. He noted that the AEG-promoted Rolling Stones tour is only a few shows. The ticket prices are so high, Phillips said, that the Stones can make a lot of money off of a few shows. They also employ their own crew. By comparison, Justin Bieber is doing 130 concerts over a 14-15 month period, Phillips said. Putnam asked why the vast different. “He’s 19,” Phillips said of Bieber. “Mick Jagger is 70.” (AP)

Phillips said concert promotion is risky. “Until you put tickets on sale, you just never know,” he said. He said AEG Live cannot force artists to perform. “The artist has what I call the ultimate veto. They don’t have to show up,” he said. Putnam: “Why can’t you make them?” Phillips: “We live in a free society. They’re not my slaves.” (AP)

Putnam: Can AEG Live force an artist to perform on a show?
Phillips: No, the artist has the ultimate veto power
Phillips: We live in a free society, they are not my slaves. If the artist doesn't want to perform, there's nothing we can do. (ABC7)

Phillips then recounted the series of meetings leading up to announcing Jackson’s “This Is It” tour. The first two meetings were in Las Vegas in 2007. Phillips said Jackson was animated and appeared healthy. He said in the first meeting, Jackson was “elated” to see him and Paul Gongaware because they were “familiar faces to him.” There was a later meeting at the Colony Capital offices in LA. He said by that point, they were talking about Jackson performing. Phillips said Jackson was most concerned about getting a house for him and his children. In a proposal for Jackson’s concerts, Phillips wrote that he believed Jackson could “net, at least, $1 (million) per night” after fees. (AP)

Phillips said Peter Lopez, an attorney for MJ, asked for a meeting with AEG Live in 2007. It took place in Las Vegas. "I was told by John that Michael wanted to get back to work and that's why we were there," Phillips testified. "MJ, for all the complexities of dealing with Michael, was one of the biggest stars in the world," Phillips testified. Phillips said MJ talked about putting out new music, do something different, constantly putting music out, every 6 weeks, and tour around it. They also discussed the idea to do miniseries on King Tut and do mini movies. Meeting lasted about 90 minutes, Phillips said. "He looked great, very animated, he talked a lot about what he wanted to do," Phillips described. "He seemed fine to me." Phillips said he didn't think MJ was abusing prescription drugs at the time and he was not concerned with his health. There was another meeting where Phillips said MJ showed a mini-film he called Ghost. They also discussed mini-series on King Tut. "MJ was great, animated, clear, like the star he was" Phillips described. He detailed scene of meeting where MJ threw a pencil at him, joking. "We picked London because his popularity was less diminished because of the troubles he had had," Phillips explained. MJ ended up not moving forward with the tour then. "That was MJ," Phillips explained. (ABC7)

Phillips said Colony Capital, a real estate investment company, got involved with MJ's finance. They purchased the note of Neverland from a bank for $23 million and MJ wanted to start his career again and make money. Colony asked for a meeting with Phillips. That's where he learned about Dr. Tohme, who Phillips says was MJ's manager at the time. Meeting happened in 2008 at the bar of the Bel Air Hotel at the request of Dr. Tohme. "The most pressing thing for him, Michael, at that time, he was fixating in getting a house for him and his children, Phillips said. "He didn't want to live in other people's house anymore," Phillips expressed. (ABC7)

Putnam showed the email from Jun 13, 2008 with plans for MJ. (the not fast, need to be controlled as much as possible email). "Perfection is expensive, and incidentally impossible to achieve," Phillips opined, saying they tried to control MJ's spending, nothing else. 
Putnam: How did you do controlling him financially?
Phillips: Not very well, but I blame Paul (Gongaware) (ABC7)

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A juror has a job interview on Thursday afternoon, so it’ll be a short day. Friday will also be a half day session in Jackson vs AEG Live trial. (AP)