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2012 First day testimony of Brandon "Randy" Phillips
PLEASE HELP US TO CONTINUE THIS EFFORT FOR MICHAE L! <<CLICK
New witness, direct by Brian Panish of Brandon Randy Phillips AEG live CEO
Mr. Panish: your honor, let the record reflect this witness is being called pursuant to
evidence code 776 as an adverse witness.
Judge: the record will so reflect.
Q. Good afternoon, Sir.
A. good afternoon.
Q. You've testified in court before, right?
A. yes, I have.
Q. And did you have a chance to meet with the attorneys to prepare for your testimony?
A. yes, I did.
Q. And how much time did you spend doing that, Sir?
Q. When you gave your deposition, was Mr. Putnam representing you?
A. yes, he was.
Q. How much time did you spend preparing for your deposition?
A. none, no time.
Q. Ok, did you rely on your attorneys to prepare you for your deposition?
A. no, because I didn't ... I didn't prepare for it.
Q. So you just figured it wasn't necessary to prepare?
A. no.
Q. You were too...
A. I just felt ... I didn't feel. They felt that it would be better if I went in without doing any
preparation with them.
Q. So your lawyers advised you to go into the deposition with no preparation; is that correct?
AEG objection: your honor, asks for attorney/client privilege; sustained
Q. So you did absolutely no preparation for your deposition, right?
A. no.
Q. Is that correct?
A. that's correct.
Q. And you knew that that deposition that you gave was the same as the testimony you're giving
here today under oath, didn't you, Sir?
A. no.
Q. You weren't ever ... You've never been told that a deposition is the same as giving testimony in
a court of law?
A. that's not the question you asked. You asked if ... If what I was asked in deposition is exactly
what you were going to ask me in court.
Q. No, I didn't ask that question. Could you please read back my question? And Mr. Phillips, I
want to tell you, Sir... If you don't understand a question, please don't answer it. Ok
A. ok
Q. And if you want me to repeat it, please tell me. Do you understand that?
A. I will do that. Thank you.
Q. Do you understand you can do that?
A. uh-huh.
Q. Yes?
A. yes.
Mr. Panish: could you please read back the question that I asked Mr. Phillips?
*question read back*
And you knew that that deposition that you gave was the same as the testimony you're
giving here today under oath, didn't you, Sir?
Q. Please answer that question.
A. in that ... In that case, a yes no answer, yes.
Q. And, Sir... You knew and the jury will be instructed, that the testimony in a deposition is the
same and to be considered the same as it's ... As if it were given on the witness stand in the trial,
correct?
A. correct, I was under oath, yes.
Q. No, it's the same. It's no different. You understood that, didn't you, Sir?
A. I understood that I was under oath. That's all I understood.
Q. You weren't told at the beginning of your deposition that the testimony in your deposition is
the same as if it were given to court, the same weight?
A. no.
Q. Ok and so then, Sir... You read that deposition and then you again signed it under penalty of
perjury, right?
A. that is correct.
A. that's correct.
Q. And did Mr. Leiweke left the company?
A. yes, he did.
Q. Was his employment terminated?
A. I don't know.
Q. You don't know why your direct report left the company?
A. no.
Q. You never asked him?
A. I thought it was something that it was between him and the company, so...
Q. You've been reporting to Mr. Leiweke for over 10 years; is that right, Sir?
A. almost 12.
Q. 12. Were you friendly with Mr. Leiweke?
A. loved him.
Q. And when Mr. Leiweke left the company after you and him working together 12 years, you
never once asked him why he left the company; is that correct?
AEG objection: relevance, your honor; overruled.
A. no.
Q. That's correct?
A. that's correct.
Q. And one of the people you report directly to is Philip Anschutz; is that right, Sir?
A. not ... Not directly. He's part of a committee now and when Tim was at the company, no, I
reported to Tim
Q. Sir... Did you testify under oath in your ... This case that Mr. Anschutz was one of your direct
reports?
A. now now that Mr. Leiweke is no longer at the company.
Q. Have you ever stated under oath that ... That Mrs. Jackson aided and abetted Joe Jackson to
extort money from AEG?
A. are you talking about the all good...
Q. Sir... My question is ... Do you know what it means to say something under oath?
A. yes, Mr. Panish, I do.
Q. Ok, do you know what it means to sign something under the penalty of perjury?
A. yes, I do, Mr. Panish.
Q. Do you sign things under the penalty of perjury without reading them?
A. no.
Q. Did you ever sign under the penalty of perjury that Mrs. Jackson is trying to extort AEG live?
A. it's possible. I don't remember.
Q. You don't remember what you signed under penalty of perjury in this case, Sir?
A. I don't remember what document you're referring to.
Q. Well, Sir...
A. can you show it to me?
Q. Do you read things that you signed under the penalty of perjury?
A. of course. Do you know how many documents I sign a year, every year? So...
Q. Tell me, how many documents have you signed under the penalty of perjury in this case, Sir?
A. in this case, the deposition and that's probably the only document that I know of.
Q. Ok, so my question is, have you signed under the penalty of perjury any document saying
what I just said to you?
A. I don't remember saying that, so I can't answer.
Q. The answer is no, you don't recall; is that right?
A. correct.
Q. And Mr. Anschutz has never been concerned or talked to you at all about this lawsuit, right?
A. never.
AEG objection: lacks foundation; overruled.
Q. And he's authorized you to take all the steps that you've taken on behalf of AEG live in this
case, correct?
AEG: same objection; overruled.
A. I don't understand the question.
Q. Ok, do you know what it means to authorize someone to do something, Sir?
A. yes.
Q. Ok, what does it mean to you?
A. it gives you ... It's giving someone the ability to perform a job, to make decisions for the
company.
Q. Ok and you've been making ... Performing the job and making decisions on behalf of the
company relating to this lawsuit, haven't you, Sir?
A. relating to the lawsuit?
Q. Yes.
A. no, Ive just been preparing my testimony.
Q. Well, Sir... Is it ... You want to have your day in court, it was your decision to come here to
court and to accuse Mrs. Jackson of a baseless shakedown, right, Sir?
AEG objection: your honor; lacks foundation. Judge: argumentative. You need to rephrase
that.
Q. Sir... You believe this is a baseless shakedown and you want to come here and tell your side of
the story, right?
A. I believe you called me as a witness, so Im here.
Q. Do you want to tell your side of the story to let everyone know this is a baseless shakedown,
Sir?
A. I would ... Wish you wouldn't keep calling it a baseless shakedown because it's derogatory. I
know that's ... What I testified to...
Q. That's what your lawyer has been referring to it as, hasn't he, Sir... To your knowledge, a
baseless shakedown of AEG live?
AEG objection: your honor, it's argumentative and irrelevant; sustained.
Q. Sir... To your knowledge, have you been notified that your lawyer, Mr. Putnam, has been out
saying that this case is a baseless shakedown of AEG live, yes or no?
Mr. Putnam: may we have a sidebar, your honor? Judge: yes, let's have a sidebar.
Sidebar
Judge: you may continue.
Q. Mr. Phillips, you believe this ... You believe this case is an extortion, right?
A. yes.
Q. And you believe that AEG has absolutely no responsibility whatsoever for anything that
happened, correct?
A. correct.
Q. And you stated and you told Mr. Ortega when he was complaining about Mr. Jackson that
you checked everyone out, especially Dr. Murray, because AEG does, right?
A. because at the time, that's what I thought.
Q. No, no, Sir. Isn't it true that when Mr. Ortega was complaining about Mr. Jackson and his
health that you told Mr. Ortega that AEG checks everyone out, including Dr. Murray. Yes or no,
Sir?
A. it's not a yes-or-no question. First of all, in your question, Kenny Ortega was not complaining
about Michael Jackson at all. He wasn't complaining. He was...
Q. Sir... When Mr. ... Was concerned about Michael Jackson.
Mr. Putnam: can he finish ... Judge: well ... Are you finished? Brandon Randy Phillips: yes.
Judge: ok
Q. Sir... Did you ever tell anyone that AEG checks everyone out?
A. I wrote in an email to Mr. Ortega that on the doctor, Dr. Conrad Murray, I thought he had been
checked out ... That he had been checked out, because I thought at the time he had been and I
still think he had been, to an extent. But go ahead.
Q. Sir... You wrote to Mr. Ortega that Dr. Murray was a successful doctor, did you not?
A. because that's what I was told.
Q. And you also wrote to Mr. Ortega that AEG checks everyone out, didn't you, Sir?
A. yes, I did.
Q. And that wasn't true, was it, Sir?
A. in retrospect, he ... Not 100 percent, no.
Q. Have you heard ... Is there such a thing as partial truth in your world, Sir?
A. no there's what ... There's what I thought at the time versus what I learned afterwards.
Q. Ok, Sir... Have you ever heard of the truth, the whole truth and nothing but the truth?
A. yes, Sir.
Q. Did you just take that oath, Sir?
A. yes, I did.
Q. Now, Sir... AEG live is a wholly owned subsidiary of the Anschutz entertainment group,
correct?
A. that is my understanding.
Q. Is it unreasonable to expect the CEO to know whether or not his company is a subsidiary of
another?
A. Mr. Panish that might be the way it was set up. I'm assuming that's what it is. I'm not 100
percent sure how the company is characterized for tax reasons.
Q. Well, Sir... As the CEO, you're responsible for the profit and loss of AEG live, aren't you?
A. that's correct.
Q. And, Sir... Isn't it true that AEG live does not lose money on anything. We're a business, we're
all about making money. Didn't you say that, Sir?
A. amongst other things. You're taking things out of context. Yes, that's probably a statement I
did make in some interview.
Q. Well, let's re-read the question and I ask you to answer my question. ...
A. ok
Q. Whether or not you've ever made that statement, Sir. Ok
A. yes.
Mr. Panish: so let's hear it again, please.
*question is read back*
Q. And, Sir... Isn't it true that AEG live does not lose money on anything.
A. we're a business, we're all about making money?
A. yes.
Q. By Mr. Panish: and you said that to Forbes magazine, didn't you, Sir?
A. probably.
Q. Wasn't that one of the articles you reviewed to prepare for your testimony?
A. no, it wasn't.
Q. Ok and Sir... When you said that, you were discussing the LiveNation/Ticketmaster deal,
weren't you, Sir?
A. in that article, correct.
AEG objection: lacks foundation.
A. that is correct.
Judge: overruled, he said he knew.
Q. And you were critical of LiveNation for spending ridiculous amounts of money to do deals
with certain artists, correct?
A. because they ... It caused the ticket price to go up. Yes. The answer is yes.
Q. Ok, Mr. Phillips, if you don't understand the question, you don't have to answer it. Ok
A. ok,
Q. Could you try to please answer my questions?
A. yes.
Q. Ok and if you don't understand, it's ok, I can ask it again.
A. I got it. I understand.
Q. I won't be offended. I don't always ask the best questions. Ok
A. you got it.
Q. All right. So let's start here. In 2009, you were worried about massive unemployment biting
into the June and July ticket sales for the Michael Jackson this is it tour, correct?
A. Id have to look at the article. I don't think I was referring to the Michael Jackson tour.
Q. So you don't remember saying that in the article, Sir?
A. Id have to read the article, Mr. Panish.
Q. My question again, Mr. Phillips was, you don't recall making that statement in the article?
A. I don't remember the article, Mr. Panish. Did you purposely make the copy so light I could
barely read it?
Mr. Panish: you know, I could tell you that I honestly didn't. But this one might be better, so let
me use this one. Your picture looks good, though.
Brandon Randy Phillips: that's the nicest thing you've said to me today.
Mr. Panish: just give me a chance, Mr. Phillips.
AEG objection: your honor, we have an objection to this. It doesn't appear to be on their
exhibit list.
Mr. Panish: it doesn't have to be on the exhibit list to refresh his recollection, does it?
AEG: as long as it's just being used to refresh.
Judge: ok
Mr. Panish: well...
Brandon Randy Phillips: ok
Mr. Panish: ok
Q. Does that refresh your recollection where you discussed about the massive unemployment?
A. give me a second to read it.
Q. Take your time.
A. yes, I see it.
Q. Does that refresh your recollection?
A. yes, it does.
Q. Now, Sir... LiveNation, in your business...
A. ok, is there ... Is there a part that said the Michael Jackson tour in here. Because I didn't read
that...
Q. I didnt...
A. Im just curious.
Q. Unfortunately, Mr. Phillips, I get to ask the questions.
A. oh, I know.
Q. If you want me to go up there, Id be happy for you to question me; but I don't think they're
going to allow that. So Im happy to answer any questions you want to ask me outside of court;
but right here, Im not allowed to do that. Ok
A. ok
Q. If you want to, outside, Im happy to answer everything you want to ask me.
A. I understand.
Q. Now, Mr. Phillips, Sir... LiveNation, in your business, is number 1, right?
A. LiveNation is the largest concert promoter in the world, yes.
Q. Is that a yes?
A. that's a yes.
A. no, no.
Q. They went out of business?
A. they did go out of business.
Q. Ok, you didn't have anything to do with that, though, right?
A. no.
Q. Ok and you described Michael Jackson as the greatest star in contemporary music, correct?
A. that is correct.
Q. And you've described him as a genius and that there's no other entertainment like him in the
world today, correct?
A. correct.
Q. And you knew that it would be a monumental achievement for AEG live to get Michael
Jackson, correct?
A. correct.
Q. And you knew that it wasn't going to be easy to get Michael Jackson because he hadn't done
any touring in approximately 12 years, correct?
A. correct.
Q. And you've wanted Michael Jackson ever since AEG opened the o2 arena in London in
2007?
A. that is correct.
Q. And the concept with the o2 is have the mountain come to Mohammed, right?
A. yes.
Q. I think that's how you described it.
A. yes that was our strategy.
Q. So in other words, Mr. Jackson. Mohammed, would come to o2, and the world would come
to him and hed not have to travel, right?
Q. I've tried for a long part of this time now not to argue; so please, I just ask you on my behalf
don't do that because Ill start doing it. Ok
A. you've got it. We have a deal.
Q. Didn't Michael Jackson say, in 2007, he wasn't ready to go on tour?
A. Michael Jackson never said that to me. Raymone Bain and Peter Lopez said that to me.
Q. And then in June 2008, Tom Barrack ... Who was the CEO of Colony Capital, correct?
A. correct.
Q. And you know Mr. Barrack, correct?
A. well, I met him through this. I didn't know him...
Q. My question was do you know Mr. Barrack?
A. I do now, yes.
Q. If it's not clear, let me know.
A. no. I'm trying to make it ... I understand.
Q. And Mr. Barrack is a very good friend with Mr. Anschutz, isn't he?
A. yeah, I believe they had done deals together before.
Q. Right. And Mr. Anschutz and Mr. Barrack talked on the cell phone when Mr. Anschutz was in
Africa, correct?
AEG objection: lacks foundation, calls for hearsay; sustained.
Q. Are you aware whether or not Mr. Barrack and Mr. Anschutz had a telephone conversation
while Mr. Anschutz was in Africa?
AEG: same objection; overruled, if he knows.
Brandon Randy Phillips: well, I ... I think Mr. Barrack was in Africa. I don't think Mr. Anschutz
was in Africa.
Q. Ok, flip it around. Mr. Barrack was in Africa. Did he call Mr. Barrack from Africa to talk to
him?
AEG: same objection.
Brandon Randy Phillips: you're getting it confused again. Mr. Anschutz was in Denver and Mr.
Barrack was in Africa.
Mr. Panish: I said that. Mr. Barrack is in Africa.
Brandon Randy Phillips: right.
Mr. Panish: Mr. Denver ... Mr. Anschutz is here, United States.
Brandon Randy Phillips: Tom Barrack called Phil Anschutz, Im not sure where he was. Ok
Q. Because they had a personal relationship?
AEG objection: lacks foundation. Judge: if he knows; overruled.
Brandon Randy Phillips: they had a business relationship. I don't know what it was beyond that.
Q. And that was in late ... Late august of 2008; is that right?
A. that's correct.
Q. And did you learn that Colony Capital had purchased the note on the Neverland Ranch?
A. I did.
Q. And did you know that Mr. Barrack was one of the principals of Colony Capital?
A. yes.
Q. And that Mr. Anschutz then called you and told you to meet with Mr. Barrack, right?
A. that is correct.
Q. Do I have that right now?
A. you've got it.
Q. And then you went to the Colony Capital offices in century city, correct?
A. correct.
Q. Was Mr. Jackson at that meeting?
A. no.
Q. Was anyone representing Mr. Jackson at that meeting?
A. no.
Q. Was that meeting in June of 2008?
A. I think it was ... I think it was later than that. I think it was in august of 2008. That's my
recollection.
Q. Ok, let me see if I can refresh your recollection, Sir. I'll show you and exhibit
A. correct. Ok, so it had to be June.
Q. Have you seen that before, Sir?
A. yes.
Q. Does that refresh your recollection that the meeting was in June of 2008 and not august?
A. I believe so.
Q. Ok
A. I believe so.
Q. Ok, let's look at this email who wrote this email, Sir?
A. I wrote this email.
Q. You're Randy Phillips, right?
A. yes, I am.
Q. And who are you writing this email to?
A. to Richard Nanula, who I believe is a partner in Colony Capital.
Q. Ok and who else were you copying on this?
A. a guy named p. Fuhrman, who Im not sure who that is; Tim Leiweke; Paul Gongaware; John
Meglen and rob hallett.
Q. Ok, we know everyone but hallett. Whats his position?
A. rob hallett is the head of AEG live London.
Q. Ok and what was the subject of this email, Sir?
A. it was a summation of the proposal we had made to Raymone Bain and Peter Lopez and I
extracted it to the time period going forward, but this was basically a strategic plan that I had
prepared for Michael Jackson.
Q. Ok, but there is a meeting where you're laying out your plan and nobody was there
representing Mr. Jackson, correct?
A. not at this time point, no.
Q. Is that correct, Sir?
A. correct.
Q. And this is where you said that Michael Jackson was not fast and a total perfectionist, right?
A. correct.
Q. And you wanted to make sure that you had as much control as possible in dealing with Mr.
Jackson, correct?
A. in terms of his spending, yes.
Mr. Panish: could I ask that the question be please reread?
*question is read back*
Brandon Randy Phillips: and, again, that's ... That's what I wrote and I was ... I was referring to
his spending.
Mr. Panish: ok
Q. But you didn't write that in that line, did you, Sir?
A. no; but if you read the entire thing, you'll get the point.
Q. Well ... Well, let's read this, Sir. Why don't you read the sentence ... You wrote this whole
email, didn't you, Sir?
A. yes, I did.
Q. And you don't write things in emails that aren't true, do you, Sir?
A. of course not.
Q. That would be wrong, to write something that's not true in an email, wouldn't it, Sir?
Q. Sir... All I asked you was, did you have an understanding of whether Mr. Tohme, or Tohme
Tohme, was working with Michael Jackson. Thats all I asked you.
A. yes.
Q. And what would the answer to that be?
A. yes.
Q. So based on your understanding, you went to a meeting with Colony Capital. Colony capital
held the note on the Neverland Ranch, correct?
A. correct.
Q. They told you to contact Tohme tome, correct?
A. correct.
Q. Tohme Tohme was a longtime business associate and consultant for Colony Capital, correct?
A. correct.
Q. And he was also working with Mr. Jackson, correct?
A. that is correct.
Q. Did you think that was a little bit of a conflict of interest, Sir?
A. no.
Mr. Panish: I guess we're at the ... Unfortunately, Sir... Im not going to be able to ask you any
more questions today. Tomorrow. But if you want to ask me in the hallway, Ill be available.
Brandon Randy Phillips: very kind of you.