Michael Jackson’s promoter looks to turn a profit

Between unreturned tickets, rehearsal footage and insurance money, AEG should more than recover its losses


 

The L.A.-based concert promoter AEG Live spent $25 million to $30 million preparing for Michael Jackson’s comeback tour. It also sold $85 million in tickets. So many figured that Jackson’s death would ruin the company. However, there is a chance that AEG might not just recoup its losses, but turn a profit. To start, the company has offered fans either a full refund or a special souvenir ticket. Almost half have opted for the ticket—a number that could help the promoter break even. AEG also stands to recovers losses through an insurance policy. It can file a claim if Jackson is found to have died accidentally or from prescription drugs. Lastly, there is footage from rehearsals that will almost certainly be turned into a documentary. AEG would be entitled to a cut of the proceeds. Even in death, the Michael Jackson franchise will likely be very lucrative.
Los Angeles Times


 
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Michael Jackson’s promoter looks to turn a profit

  1. The FT had a very interesting article about this dilemma in their weekend magazine today. They argued that the best financial outcome for someone who was neutral would be to take the refund, as there was no guarantee that the souvenir ticket will offer more financial reward or satisfaction.

    I think it is pretty poor ethics from AEG not to be offering these tickets for free in addition to the refund, but from a economic point of view it is pure genius. They give out a souvenir that will cost 10p to print, instead of paying back £75. Of course they probably won't recoup all the money they have spent already, but it will help them to avoid bankruptcy.

    I've written more about this situation and scenario at my website, http://www.london-insider.co.uk