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Jacko's Death Could Cost Comeback Promoter Millions

Star's death may invalidate insurance on 50-gig London comeback

By Rob Quinn,  Newser Staff

Posted Jun 26, 2009 5:05 AM CDT

(Newser) – Michael Jackson's death will be either "horrible or really horrible" for the promoters who set up his 50-concert comeback, depending on how watertight their insurance is, industry insiders tell Billboard. AEG Live has already paid out an estimated $30 million in production costs, as well as a $10 million bonus to Jackson, and now faces the costly and complicated task of refunding $85 million in ticket sales.

AEG execs said last month that the company was well-insured and that Jackson had passed the medical with "flying colors." But a traditional nonappearance policy was never written, according to one source. Even if AEG had such an insurance policy, the promoter might not be able to get a payout if it turns out that Jackson's death was drug- or alcohol-related—or due to a pre-existing medical condition, said the source.

An electronic billboard advertising Michael Jackson's series of London concerts in July is seen on the Dome, which houses the London O2 Arena.
An electronic billboard advertising Michael Jackson's series of London concerts in July is seen on the Dome, which houses the London O2 Arena.   (AP Photo/Alastair Grant)
People watch a live broadcast of  Michael Jackson as he announces a series of concerts on an electronic billboard near the London O2 Arena.
People watch a live broadcast of Michael Jackson as he announces a series of concerts on an electronic billboard near the London O2 Arena.   (AP Photo/Alastair Grant)
Michael Jackson speaks at a press conference at the London O2 Arena.  Jackson, 50, died in Los Angeles yesterday.
Michael Jackson speaks at a press conference at the London O2 Arena. Jackson, 50, died in Los Angeles yesterday.   (AP Photo/Joel Ryan, file)
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COMMENTS
Showing 3 of 12 comments
Jojo
Jun 26, 2009 10:47 AM CDT
This is nothing compared to the fight that will be coming among his own family members. How many of the brothers have filed bankruptcy? Whatever money there is will be fought over, as well as all his possessions, knowing they could be sold for a lot of money also.
drlarrymitchell
Jun 26, 2009 10:19 AM CDT
Oops!
Fondue
Jun 26, 2009 8:03 AM CDT
If I had tickets to this final tour, I would definitely be keeping them.

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