CNN: LONDON, ENGLAND JUNE 26, 09

FANS PROMOTERS COUNT COST
OF CANCELED JACKSON CONCERTS
By Hilary Whiteman

(midway though article)
Back in March, tickets for an initial run of ten concerts
sold out at the astonishing rate of 11 tickets per second,
a feat Chris Edmonds, the Managing Director of Ticketmaster
UK called a "live entertainment phenomenon."

Demand for the tickets prompted organizers to add another
40 dates to the schedule. The London shows were to be the
first step in a multi-phase package with Jackson, including
plans for a 3-D live concert film and a 3-D movie based on
Jackson's "Thriller" music video.

It's not known at this stage how much of the cost of
Jackson's canceled concerts will be shouldered by
promoters AEG Live. The company is yet to issue
a statement on the matter.It is thought only part
of Jackson's 50-date London engagement was covered
by insurers. One of those was Lloyds of London, whose
spokesman Louise Shields told CNN "any losses are not
likely to be significant."

Mary Craig Calkins, partner at Howrey law firm in Los
Angeles told CNN it was likely Jackson was covered by
essential element insurance, a common form of cover
in the entertainment industry to guard against losses
associated with the main act.

The policy would normally cover ticket sales and
production-related expenses. "He was hiring dancers
for the production, there's pyrotechnics, there's the
music, there's the equipment, there's the venue, "
Calkins told CNN.

"It's a bigger than life tour so you would expect the
expenses to be huge... You would expect the insurance
company to conduct a very thorough investigation.

It's a lot of money at stake," she said.

Fans, promoters count cost of canceled Jackson concerts - CNN.com