Michael Jackson’s death: compensation of the “This Is It” tour cancellation fees

The American singer died at 50 while he was working on the “This Is It” concerts scheduled to take place in London.

The AEG producer had underwritten an insurance policy in a Lloyd’s syndicate in order to cover the potential cancellation or the deferral fees. Unfortunately, after the the singer’s death, the insurer refused to take the refund in charge.

Michael Jackson’s death and concerts’ cancellation

Happening only three weeks before his onstage comeback, the king of pop’s death has cost tremendous losses to AEG. Nearly 900 000 tickets had been sold and 30 million dollars payed for the production fees of the 50 concerts planned in the O2-Arena (London). Moreover, prior to his passing the star had received a ten-million-dollar USD prepayment.

The process of preparing a show requires the underwriting of different insurance policy within which a coverage for cancellations or event deferral. AEG and Michael Jackson Company, the two organizers of the tour, made no exception to this rule. In April, 2009, that is four months before the beginning of the tour, the organizers covered the first 13 concerts at the Lloyd of London for 17.5 million USD. Michael Jackson, the tour’s backbone, was then undergoing a medical examination to attest to his good health and his ability to handle the show.

After the singer’s death due to a Propofol overdose, an anesthetic whose usage is prohibited outside hospitals, the insurer refused to cover the expenses. The insurance company claimed that the singer had made a misrepresentation of his health state while underwriting the policy. At that moment, recourse to justice had become inevitable especially after the media had published e-mails between Randy Phillips, AEG Live’s manager and Tim Leiweke AEG’s president. Those mails confirmed that Michael Jackson was suffering from psychological disorders and administered himself medications that prevented him from moving. Harsh condition for a dancer.

Bombshell in 2011, that is three years of judicial proceedings, the Lloyd agreed to settle the claim amicably. The terms of compensation had not been released.

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