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| AEG Live set to make profit on Jackson's legacy |
| Press Trust of India / Los Angeles Jul 03, 2009, 20:17 IST |
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Michael Jackson's sudden death had left AEG Live, the promoter of his comeback concerts, in shock but what initially looked like a huge financial blow to the company may turn out to be a blessing in disguise.
But with plans to turn Jackson's last rehearsal videos into albums and televised tribute, a commemorative ticket plan and insurance money, the company may end up making profits, reported Los Angeles Times quoting AEG Chief Executive Randy Phillips.
Jackson died weeks before his much awaited sold-out comeback concerts series in London's O2 arena.
"For the record, this great company I work for is not bankrupt. They're not going out of business and they're certainly not in trouble. I'm heartbroken, but the company is fine," Phillips said.
The company had shelled out between $25 million and $30 million in preparation for the shows.
The company, which had sold 7,50,000 tickets for $85 million for the show, promised to refund the tickets after Jackson's death but gave the pop star's fans the option of a special ticket that featured a three-dimensional image of Jackson instead of a full refund.
So far about 40 per cent to 50 per cent have opted for the souvenir ticket and if the rate of ticket-holders choosing the memento over money holds, the company will break even, said Phillips.
The AEG filmed Jackson's rehearsals in high-definition video and with a growing interest in popstar's musical legacy, the videos are likely to fetch huge money.
The footage is now secured in a vault in AEG's Staples Center. Jackson's estate would get the "lion's share" of any profits from a documentary, but AEG would also get a cut, Phillips said.
"We have the most compelling intellectual property on the last days of Michael Jackson. We have enough audios to two live albums," Phillips said.
The company is also considering a televised tribute so that "Michael's last great work" reach an audience, both live and on DVD.
The company, which had bought a $17.6 million policy covering the first 23 shows, is also expecting to recover some of its preproduction costs, which included salaries for nearly 200 employees, stages, aerial dancers, elaborate illusions and the price of top-shelf talent such as show director Kenny Ortega and choreographer Travis Payne.
Phillips said the insurance payout would depend upon a coroner's determination of how Jackson died.
"If it was an accidental death, then we have a claim," Phillips said and if the toxicology results show that prescription drugs caused the death, "we claim the full $17.6 million", he added.
Jackson was to perform 50 shows for his 'This Is It' shows in over a period of nine-months, beginning from July 13.
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