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Someone's Pimping Britney's Ride

3/19/2008 8:37 PM PDT BY TMZ STAFF

TMZ has obtained documents in the Britney Spears conservatorship case, and what's clear is that Brit has too many wheels spinning.

The commissioner signed an order giving the co-conservators the power to sell some of Brit's cars. And get this, the Britster owns seven -- count them -- seven cars.

According to the documents, the cost of maintaining the vehicles is steep, what with insurance, maintenance and storage costs. The conservators say selling some of the rides "will save substantial expenses to the conservatorship estate."

The company that will sell the cars is going to make a sweet 5% commission.

111 COMMENTS

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31.

I HATE SEAL    

This is just the begining of her "Financial downfall" She will lose a lot because here father is an idiot crook, and this is the TRUE reason why they wanted sam out. Just wait and see!

2306 days ago
32.

Dee    

Oh, and I almost forgot. Some people are commenting that Britney's
cars need to be sold to "get her off the road". Isn't this a little
EXTREME for that. All Jamie Spears needs to do is to put the
vehicles in a garage in a house owned by her -- AND GET A LOCK. What
storage fees? If she has a garage at any house she owns or rents, the
storage is free - included in her living costs. If the vehicles are
locked up, and Britney is maybe excluded as the driver on on the
policy, the premium should go down. They should not be selling off
her personal property, unless she is having cash flow problems.
Otherwise, someone is going to make a little secret profits off her,
to which she is rightfully entitled. I don't think they are going to
publicly auction the cars, and put the money in an account for her.
Jamie should hire her a driver, maybe. She still has lots of money,
and they have no good reason to sell these cars. I can just imagine
the Spears family sitting around, talking in a Southern Twang of an
accent, "let's sell off them fancy cars and git us some grocery
money." Oh come on. Isn't there ANYONE who isn't after some money
from this woman? Britney has got some cash coming in - from the TV appearances & stuff. And there is all that money she had from before. This is not the time to sell off her stuff - unless someone else is looking for a piece of it. I wonder why that Commissioner Reva Goetz, didn't appoint a PROFESSIONAL conservator to handle the financial issues - someone licensed and bonded - and not her dad. Remember Britney did not want Jamie. I think I see why. He's left holding the cookie jar, and can't resist only doing the deals that are going to get him a little cookie crumb for himself. All her family & friends are all the same. Get a licensed and bonded professional conservator, with a reputation to protect. Britney can afford that - because it would actually help her.

2306 days ago
33.

devils_advocate    

I don't get why the outrage. It's not like they are selling her personal effects. They are just tidying up financials... And they said SOME of the cars, not all. She can buy more cars in August (?) with the money she's saved, from not having to pay so many fees, and cars that are newer in fact!


Conservatorship at least until July 31st.
+5 months insurance and taxes, and storage. [I assume the storage has to do with the cars that were towed away from her property - don't know why.]
+5 months of Britney not being allowed to drive around freely.

= 5 months of expenses + 5 months of depriciation

2306 days ago
34.

Alan    

ANOTHER GOOD MOVE. GO TO IT DAD, BUT BE FAIR. AL

2306 days ago
35.

Trade    

B's problem is in choosing people who are supposed to help to take care of her company,(BS, Inc.) She chooses wrong friends, wrong managers. Otherwise, the girl is gifted. These blood suckers, including the media should drop off.

2306 days ago
36.

Stop Blaming the Paps For Everything Brit Does    

Posted at 10:16PM on Mar 19th 2008 by britaculous

britaculous .... The outrage is generated by people who are financially illiterate. They don't understand cash flow, income and balance sheet. You don't see financial analysts or accountants on this BB bitching about the financial restructuring that the conservators are managing. Dee, for example, complains (Posted at 10:05PM on Mar 19th 2008 by Dee) that the Commissioner should have appointed a PROFESSIONAL (her emphasis) conservator to handle the financial issues, but what she cannot fathom is that the steps that Mssrs Spears and Wallet are taking have all the hallmarks of professional financial advisory services. The conservators have clearly employed highly skilled financial analysts/money managers, and are taking the advice to heart.

There is an article in today's New York Times about the economic effect on New York City from the belt-tightening of Wall Street investment bankers. High-end retailers and restaurants are feeling the pinch -- a 10% drop in just the last couple of months -- as Wall Street bankers are reevaluating their spending, particularly on luxury goods and services. In a deposition that I took two years ago, the manager of the investment banking group at a major bank testified that investment banks recruit from the top 2% of the MBA classes at the Ivy League and other top-ranked schools, like U.Chi, Stanford and Chapel Hill. So you have to assume that these Masters of the Universe might be just a tad bit more financially savvy than Britney Spears. If they are shedding unproductive assets and cutting luxury spending, what does that say? It says that Britney ought to be doing the same if she wants to preserve what she has.

Britney's estate is estimated at $40 million. Look at the zillions of posts on TMZ crying out about how Britney's estate has been ravaged by her family, her "friends" like Alli and Sam, all those who take advantage of her. Well, guess what? Her estate is shrinking ALL BY ITSELF. Yep. That's right. The estimated fortune is based on projections of the stream of revenue from royalties she receives every time an album is sold, downloaded onto someone's mp3, or played by a radio station. An asset is valued by projecting the free cash flow for a period of years -- say, five years -- and then discounted for risk and present value. A few years ago several magazines like Fortune and Business Week estimated Britney's worth at $100 million. At that time, Britney was a hot commodity. She had released several albums, had singles on the charts, was getting airtime on stations, was featured on music awards shows, was on concert tours promoting sales of her music. The analysts were plugging the royalties numbers into a model to derive a five-year discounted cash flow, and probably were also assuming that Britney was wisely investing her earnings as a hedge against inflation and to grow her estate. But what has happened since? Britney stopped touring, released "Best of" album, cut a CD that has seen lukewarm sales at best. What else has happened is the passage of time -- a five-year projection of cash flow in 2004 is now reduced to a one-year projection. Since Britney blew through $20 million on her own, and has not been saving or reinvesting, and the cash flow is disappearing, her assets will wither away if not replenished.

When corporations face declining revenues, PROFESSIONAL financial advisors recommend a restructuring of assets and liabilities. Unproductive subsidiaries are sold off, weak-selling products are taken off the market, etc. Well, what some of the simpletons on this BB refuse to see is that the conservators, treating Britney's empire like a business, are doing precisely the same thing that a well-advised corporation would.

This is an oversimplified example of what the conservators are doing, but suppose Brit's estate consisted of a single automobile that she bought for $125,000 last year and has a fair market value of $100,000 today. Next year its value will decline to $80,000, plus she will have expended insurance, taxes and maintenance of another $5,000. Her estate will decline to $75,000 next year if she keeps the car. But if the car is sold today, for $100,000, she will net $95,000 after the commission. She will also save $5,000. Now if she invests that $100,000 conservatively, let's say in a one-year CD earning 4%, next year Brit will have $104,000. Her estate will have grown!

2306 days ago
37.

Justa Hillbilly    

Britney is getting screwed by EVERYONE!! I feel sorry for her ATM, and if she's smart, she will keep playing along, and then cripple them all!!!!.. It's total BS

2306 days ago
38.

Nor Cal Reader    

To "Dee" #32 &33-- That was the most intelligent, common sense posting on this entire "Britney" deal I have EVER seen!! Bravo! (Or is it Brava!?)

2306 days ago
39.

Me, myself and I    


Phew, I was worried that this particular blog consisted of only anti-Spear parents and pro-Lutfi people. Then I read britaculous and lawdawg posts. I have to thank those two for that.

I can see that the anti-Spear parent people are desperately trying to convince all of us that Jamie Spears and Kevin Federline are trying to secretly "steal" Britney's money to start a restaurant. The ONLY time I've ever seen this information, is from other bloggers on different sites. There has been no legitimate story on this at all.

On X-17, I saw their post that Sam Lutfi is challenging the conservatorship over Britney because the judge did not attend an accredited law school. He's doing this as his own lawyer. How much more ridiculous can this get? Why isn't Sam completely out of Britney's life? He is nothing to her. Not a manager. Not a loved one. Not a family member. Out of 26 years of her life, he has only known her for 6 months.

In my opinion, Sam needs some intensive mental health treatment himself.

2306 days ago
40.

jbird    

The fact that SHE was nuts, should create a condition where the sales contracts are null and void.

2306 days ago
41.

Nor Cal Reader    

To: DIANE T-- I'm with you too. You are not alone.

2306 days ago
42.

Me, myself and I    


Nor Cal Reader,

Thanks, I know that I'm not the only sane person on this post!

2306 days ago
43.

candygirl    

she earned it ,she should have a choice!!!!! we love you brit

2306 days ago
44.

ParisNauseatesMe    

The post by lawdawg at 11:03 PM on 03-19-2008 is well worth reading.

If you take the time to read it you should understand that this is for B Spears' financial benefit. No one's cheating her. Too bad she didn't have such a financial advisor from the get-go.


2306 days ago
45.

Nor Cal Reader    

DIANE T-- I know what you mean. Some of these people scare the bejeebers out of me! I'm bailing for the night. Good luck.

2306 days ago
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