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Michael Jackson's Death Could Cost Millions
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by stevesmys | June 26, 2009 at 10:24 am
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Michael Jackson's death could cost people invested in his upcoming concert series millions of dollars.
While ticket holders who bought from primary and secondary vendors can expect full refunds for their purchase, promotional company AEG could be facing a liability of £300 million (US$496 million).
Jackson's "Farewell" tour was set to begin on July 13.
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concert promoter AEG Live faces the daunting task of refunding $85 million in ticket sales for the 50 sold-out concerts lined up for this summer in London at the O2 Arena.
According to the Los Angeles Times, AEG had invested a reported $20 million in production costs for the shows, billed as the "This Is It" concerts, which were scheduled to begin on July 13. AEG's profits for the concerts were expected at around $115 million, with a three-year worldwide tour also planned that could have grossed $450 million.
The arena, which was earlier this week preparing to put more tickets on sale for Jackson’s final tour beginning 13 July, now faces being empty for the next nine months.
Customers who bought tickets through Ticketmaster and See Tickets, or secondary vendors such as Seatwave and Viagogo, can expect full refunds, though they will have to apply direct through those sites or the phone lines for the refund.
However, fans who bought from private sellers through auction sites like eBay may have to rely on that seller to pay them back. Those who cannot get a refund through their seller but who paid through PayPal may still get a refund.
"The first thing is to contact the seller to see if you can get your money back, but following that if you paid through PayPal you will be covered by insurance," an eBay spokeswoman said. "You need to make a claim within 45 days."
Tickets for the shows sold out almost immediately, with some tickets selling for over £1,000 (US$1,600) despite concern that Jackson could not complete all 50 dates due to health concerns.
Despite his death, Jackson's concert site has yet to remove the promotional material for the 50 shows. On the day of his death, all 50 shows were still listed.
The King of Pop has not been without monetary controversy during his career.
The King of Pop was once a brand ambassador for fashionable trainer brand LA Gear, after signing a new deal with record label Sony, reportedly worth $100 million, making it the richest record deal in history.
He also outbid Paul McCartney for the publishing rights to the Beatles songs — which meant every time one of their tunes was played or performed in public, he received half the royalty.
But perhaps most famous was his nine-year deal with PEPSICO, which ended suddenly when Jackson suffered severe burns while filming a TV commercial for the drinks company. The deal, at the time, was worth around $10 million.
The accident made the singer "unbalanced", according to his long time showbiz pal David Gest.
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at 02:02 on July 31st, 2009
hi^^
bye
bye!