Jackson's Death Is A Blow To Concert Promoter AEG
June 26, 2009 at 5:08 AM (PT)
A tragedy for his family and a heartbreak to his fans, MICHAEL JACKSON's death also represents a blow to the L.A. concert promoter that staked its reputation on and sunk tens of millions of dollars into a lavish comeback that will never happen, reports THE LOS ANGELES TIMES.
"AEG LIVE billed 'This Is It,' the sold-out concert series that was to have opened JULY 13th in LONDON, as the most expensive and technologically advanced arena show ever. It had invested more than $20 million to mount a production that was to have included up to 22 sets, elaborate light shows and high-wire acts. The company, which owns the STAPLES CENTER in L.A., among many other venues, had also set aside 50 nights at its coveted European showplace, the O2 ARENA.
"With JACKSON's death, AEG will have to refund the $85 million worth of tickets that were sold. Gone are the company's expected profits, as well as plans for a global three-year tour that the company had predicted would gross $450 million.
"AEG struggled to get affordable insurance for the shows, given JACKSON's history of canceling tours and his 12-year hiatus from performing. Chief executive RANDY PHILLIPS vowed to self-insure the shows if carriers wouldn't, and ultimately the company secured coverage for what PHILLIPS called "the first $23 million."