Posted in industry | music on June 25, 2009

Michael Jackson O2 concerts

Michael Jackson's planned 50-show run at the O2 Arena in London would have been the highest-grossing single concert engagement. Now it's a major problem for the promoter AEG Live.

More than $85 million worth of tickets have already been sold for the series of performances, which have the now sadly ironic title "This Is It." As much as $30 million has already been spent on production, according to sources close to the situation. So what's at stake for AEG, the world's second-largest concert promoter, can't be overstated.

Concert business executives have estimated that AEG paid Jackson an advance of as much as $10 million. That, plus the production costs, would mean AEG stands to lose as much as $40 million if nonappearance insurance isn't substantial enough to cover this contingency. For AEG, "it's either horrible or really horrible," a concert business executive says....

...AEG Live CEO Randy Phillips told Billboard May 12 that his company was well-insured. "We have one policy in place and we're negotiating for an even larger binder," said Phillips, who couldn't immediately be reached for comment regarding Jackson's death. "We have insured the production costs. In order to get the first part of the insurance in place, [Jackson] had to have a physical, and he passed it with flying colors." AEG CEO Tim Leiweke made similar comments in March at the Billboard Music & Money Symposium... [Billboard]

PREVIOUSLY: Michael Jackson fans gathering outside Apollo Theater

Jermaine Jackson (who Fox News called Randy) just spoke to news reporters. That Fox News video below...

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Comments (16)

I'm gonna go learn Billie Jean on guitar.

Posted by Anonymous | June 25, 2009 10:42 PM

money, money, money, monnnneeey

Posted by Anonymous | June 25, 2009 10:47 PM

They should just get Prince to fill the dates.

Posted by Anonymous | June 26, 2009 12:10 AM

first off, RIP MJ.

secondly, the possibility of a large concert promoter losing $40 million dollars gives me a fucking erection. i understand everyone needs to make money, BUT those concert promoters have been fleecing concertgoers with increasingly ridiculous ticket prices and service charges and, as far as i'm concerned, can all go to hell.

so suck on that, this is what it feels like to get cleaned out.

Posted by schadenfreude | June 26, 2009 12:14 AM

If AEG goes down, Live Nation/Ticketmaster will become an even bigger monopoly. Concertgoers will get screwed even more. You're unable to see the big picture.

Posted by Anonymous | June 26, 2009 12:32 AM

schadenfreude, your a fucking moron.

Posted by Anonymous | June 26, 2009 12:35 AM

How on earth did AEG think that Jackson would have been able to fulfill FIFTY shows even if he had lived. Nobody has ever done fifty arena shows in a row. Especially not someone who hasn't toured in over a decade. What were they thinking in the first place? If he had lived, he would have been unable to finish off the run probably due to exhaustion anyway. Didn't he pull out of only a couple of shows recently somewhere and it resulted in a lawsuit?

I know he had a physical and was given the a-okay, but his past shenanigans and his fragile mental state should have been a clue to AEG not to gamble on that many shows anyway.

I never thought he'd be gone before the first show was scheduled, but when the shows were first announced, I knew that they would all not be performed.

Posted by Anonymous | June 26, 2009 12:58 AM

if you look at the dates, they gave him time in between shows. he also probably would have lip synced for some of the songs. the dancing of course would be tiring though.

Posted by Anonymous | June 26, 2009 1:47 AM

I had a 50 foot erection, one foot for each show he was supposed to perform. In th end, I truthfully only had a 6" boner so that means MJ was destined to perform only 1/2 show.

How could the promoters be dumb to think this was going to happen? I love MJ and more power to him and sorry about his passing, but this is not a shocker. He had severe problems: money, boys, painkillers, and every other fascist of life. I love the man and mourn it but this can't be a conquientance. Attack heart I'm sure means foul play of innocent born drugs instead of boys for once but still. To ask a non-performer to play 50 straight shows is too much after the initial 10-show run. The pressure caught up to him like the sale at K-Mart for little boys pants that were half-off. You can't ask a perv to ignore that temptation for too long or a creditor.

RIP - MJ but tie yourself off if you didn't see this coming. If you are under 25 he didn't effect your life so quit broadcasting his well being. The man has been a sick pervert for 15 years no if, ands or butts.

Posted by Never thought MJ would be on a concert 50-stay tour | June 26, 2009 2:39 AM

He's been dead to me since HIStory. Just sayin'...

Posted by Anonymous | June 26, 2009 3:41 AM

"secondly, the possibility of a large concert promoter losing $40 million dollars gives me a fucking erection. i understand everyone needs to make money, BUT those concert promoters have been fleecing concertgoers with increasingly ridiculous ticket prices and service charges and, as far as i'm concerned, can all go to hell."

Those concert promoters have to pay for all the costs of the show and bear all the risk of the show not being successful. If you want to blame someone for getting "fleeced", I'd first look at the artists you are paying money to see. Their guaranteed payment is more likely the reason you are paying more and more for concert tickets. Go look at how much money Live Nation makes sometime. Not exactly the healthiest company.

Posted by Anonymous | June 26, 2009 9:31 AM

Tom Sneddon is a cold man

Posted by Anonymous | June 26, 2009 9:41 AM

Tens of MEHllions of dollars!

Posted by Anonymous | June 26, 2009 9:55 AM

To paraphrase John Lennon, Michael Jackson has been dead since the '80's.

Posted by Anonymous | June 26, 2009 11:39 AM

I enjoyed this post.

Posted by traffic mavericks | November 5, 2009 8:48 AM

ugh, anyone have an extra for the wurst boat tonight? i am decidedly not on a boat
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