Posted on 06 Jul 2009
On Thursday concert promoter AEG Live's chief executive stated that insurance will help cover any losses on the now-canceled Michael Jackson concert series if the pop star died accidentally -- including of a drug overdose -- but not if he died of natural causes.
Randy Phillips said the company took out $17.5 million in insurance coverage through Lloyd's of London.
That would fall short of the $25 million to $30 million Phillips said AEG Live spent on Jackson's advance, producing the 50-date series at The O2 arena, covering some of Jackson's debts, and paying his staff and rent on the Holmby Hills mansion where he lived.
Phillips added, however, that 40 percent to 50 percent of concert ticket-buyers have so far decided to receive tickets as memorabilia in lieu of a full refund, a pace that is on track to help the company at least break even on its expenses.
The sold-out concerts had garnered some $85 million in ticket sales, but AEG has offered full refunds on the face value and surcharges.