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Rediff News  All News  » Movies » 50 'farewell' gigs: Company faces £300m liability

50 'farewell' gigs: Company faces £300m liability

June 26, 2009 11:22 IST

King of pop Michael Jackson's death has brought AEG Live, the entertainment company that persuaded him to sign up for 50 "farewell" concerts at the O2 arena, under a liability of 300 million pounds.

According to reports, AEG Live had agreed to "self-insure" Jackson's shows after most insurance companies expressed doubt whether the frail singer would be able to complete the residency.

A report published in Reinsurance magazine, which found that there was low demand in the London insurance market for the policy to cover all dates promoted by AEG Live, reckons that the liability could be around 300 million pounds.

The first 10 gigs are believed to have been placed on the London insurance market at a value of 80 million pounds, reports Times Online.

The report further reveals that rather than lowering expectations for the shows, the company kept saying that Jackson would present the most spectacular live show seen on an indoor stage.

Jackson's death may have serious implications for Seatwave, the company that traded in about 10,000 Jackson tickets on the secondary market, in partnership with the O2 arena, often for a price far above face value.

A message placed on the company's website read: "We at Seatwave are saddened by Michael Jackson's death. Our condolences go to his family and we appreciate the great legacy he has left us."

Meanwhile, AEG Live has announced on its official website that fans who could not make the dates rescheduled after the opening dates had been cancelled would get a full refund.

That promise will now be honoured for one million customers.

Ticketmaster, which also sold Jackson tickets, is also said to have a policy to refund the face value of the ticket as well as the booking fee.

Text: ANI