LOS ANGELES — The head of AEG Live took the stand Tuesday and admitted he thinks the case brought against his company by the family of Michael Jackson is a “baseless extortion.”
Randy Phillips — the CEO of the concert company that was producing and promoting The Gloved One’s doomed “This Is It” tour in 2009 — stunned the Los Angeles courtroom when he answered “yes.”
AEG lawyer Marvin Putman recently shot down rumors that AEG would settle the wrongful death case, telling reporters: “Why would AEG settle a case that we consider to be a baseless shakedown.”
Jackson family lawyer Brian Panish asked Phillips, “Have you ever stated under oath that Mrs. Jackson aided and abetted Mr. Joe Jackson to extort money from AEG?”
Phillips replied, “I don’t recall.”
Michael Jackson’s mother Katherine and the King of Pop’s three children claim AEG is responsible for hiring Dr. Conrad Murray, who is serving four years for giving Jackson a lethal dose of anesthetic.
Phillips testified that the idea of the tour started with a phone call in June 2008 from Tom Barack of Colony Capital to AEG chairman Phil Anshutz. Barack’s company had recently bought the note on Neverland, after Jackson was unable to make payments on his huge ranch in Santa Barbara.
Philips met with Barack and laid out a plan in a June 13 email to several execs in which he said, “I caution you that MJ is not fast and a total perfectionist (needs to be controlled as much as possible).”
Soon Phillips was dealing with Jackson’s new manager, Dr. Tohme Tohme, who was described by Phillips as a longtime business associate and consultant with Colony Capital.
“Did you think that was a conflict of interest?” Panish asked. “No?” said Phillips.
Additional reporting by David K. Li in New York