It is quite a thought that AEG, Michael Jackson’s event management company, was unable to get insurance for at least 30 of the concerts, which were due to start next month after obtaining limited cover for between 10 and 20 of up to $250 million.
Insurers declined to take on the financial risk of the shows not going ahead, apparently concerned that the singer, who appeared frail at the unveiling of the concerts in March, would not be able to complete the run of concerts.
AEG’s chief executive, Randy Phillips advised that the company owned by the American billionaire, Philip Anschutz, was willing to “self-insure”, and shoulder the potential cost himself. By doing this, it shows the determination of AEG’s plan to get Michael Jackson on top of the music business, which he dominated.
Randy Phillips also advised, “It’s a risk we’re willing to take to bring the King of Pop to his fans,” insisting Jackson had passed a thorough medical examinations “with flying colours”. AEG declined any allegations of pushing the pop star to his limits when practicing for events.
Ray Waddell, a live entertainment expert from Billboard magazine, recently reported that the limited cover AEG managed to obtain did not include Jackson’s non-appearance despite this typically being a basic component of such policies. He said that “if AEG had a policy, that doesn’t mean Jackson’s death, and the losses incurred, would be covered,” He also commented, “If Jackson’s death was a pre-existing condition, drug or alcohol related, a normal cancellation policy would not cover that, even if he had passed a medical exam.”
The original buyers of all 750,000 tickets for the concerts, which were priced at £50-£75, are expected to be given a full refund. However, fans that bought tickets for thousands of dollars through internet auction websites like eBay, will not get their money back. Tickets for the concerts sold out in one morning, after being bought at a rate of 11 per second. This incredible rate of ticket sales shows that the king of pop had retained his title as the king of global music.
The concerts would have been based at London’s O2 arena, however due to the passing away of the star, O2 management advised the public, “At this moment our thoughts are with Michael’s children, family and friends. We will announce ticketing details in due course.” AEG and the O2 must now either find acts big enough to fill the 15,000-capacity arena for the 50 dates, which span in July, or let the venue sit empty.
Predicting the financial fall out would be messy as well as expensive, ultimately, AEG may have to file a claim against Jackson’s estate. Also, since the king of pop has hundreds of millions of dollars of debt, and a couple of multimillion-dollar lawsuits pending, the worth of that estate is very much in doubt.