Concert promoter in trouble after Jackson's death
Posted
Jun 26 2009, 12:45 PM
by
Kim Peterson
Rating:
Michael Jackson's unexpected death has created major problems for promoter AEG Live. The U.S. entertainment company had signed Jackson to a 50-concert run at London's O2 arena starting next month.
The shows were to be the start of a grand comeback for Jackson. More than $85 million in tickets have already been sold, and as much as $30 million had already been spent on production, Billboard reports. The run would have been the highest-grossing single concert engagement in history, the magazine adds.
If AED did in fact pay Jackson a $10 million advance, as some in the industry estimate, then AEG stands to lose up to $40 million, Billboard reports. Nonappearance insurance will help, but probably won't cover anywhere close to the full amount.
"It's either horrible or really horrible" for AEG, a concert business executive tells Billboard.
The Times Online reports that AEG is facing a liability of up to £300 million. Jackson had originally scheduled an initial run of 10 shows, but demand was so high -- with 1 million people wanting tickets -- that AEG expanded to 50 concerts.
And AEG reportedly said it would "self-insure" the shows if insurance companies balked at the likelihood that Jackson would complete all 50 performances.
"Reinsurance magazine, which found that there was low demand in the London insurance market for the policy to cover all dates promoted by AEG Live, placed the liability at about £300 million," reports the Times Online.
It's unclear whether AEG was able to persuade insurers to sign on to the project.
