Who was paying Dr Conrad Murray?

Michael 14 May 2009



There seems to be a lot of confusion in the media, as the wrongful death lawsuit trial begins, over who was paying Dr Murray.

I have read Michael's contract, and as explained in my post The AEG Contract - Good or Bad?, Michael was to pay all 'This Is It' production costs from his 90%, and as that includes his manager's salary, it therefore it seems likely that it includes Dr Murray's salary.

However, the confusion has arisen because AEG Live had an advances agreement, as Michael would not be receiving any any money from the shows until the profit from the 'This Is It' shows started coming in. The advances included money for renting the Carolwood house, and probably the rent for Foxbury Manor where Michael was due to be staying in Kent, during the shows.

Dr Murray's salary could also be paid from these advances, although in fact Murray was not paid a dime, nor was his contract signed by Michael.

So in summary, Michael was paying Dr Murray, but AEG Live was providing funds via advances.

But then there is further confusion caused by the email from AEG Live Co-CEO Paul Gongaware which was sent on 14 June 2009 to Kenny Ortega :

 

"We want to remind (Murray) that it is AEG, not MJ, who is paying his salary. We want to remind him what is expected of him."

It may have been a misunderstanding on Paul Gongaware's behalf, but this email suggests that it was AEG who was giving Murray his orders and also paying his salary. This is a pivotal part of the lawsuit, so let's wait and see what the actual truth is.