Posted on Friday, June 26th, 2009 at 7:16 am. Filed under The Daily Diva, the Diva Report. You can leave a response, or trackback from your own site.
26 Jun
ACCORDING TO THE LOS ANGELES TIMES:
Jackson’s death is a blow to concert promoter AEG. The L.A. company had sunk millions into the star’s comeback, despite warnings that it a was a major risk.
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 — an estimated $115 million, according to Billboard — as well as plans for a global three-year tour that the company had predicted would gross $450 million.
“They are taking a big hit,” said Gary Bongiovanni, editor of concert-tracking publication Pollstar. Among the company’s immediate priorities, he said, will be trying to find other acts to fill the O2, a 20,000-seat arena that does not rely on resident sports teams to occupy its seats. Jackson concerts were scheduled to run through March.
“They will be able to re-book some of those shows. But those in July, the building will probably be dark. You have an empty building, and that’s going to have an impact on their London operations, certainly,” he said.
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.”
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.
AEG Live billed “This Is It,” the sold-out concert series that was to have opened July 13 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 among many other venues, had also set aside 50 nights at its coveted European showplace, the O2 Arena. FOR THE COMPLETE STORY.
MICHAEL WAS GIVEN $10 MILLION UPFRONT!
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