What About Those Michael Jackson Concert Tickets?

At least one company has been left with a big mess on their hands in the wake of the death of Michael Jackson. AEG Live, the promoters behind Michael Jackson's comeback concerts planned to start next month, are facing the task of how to deal with refunding more than $85 million on sales of 750,000 concert tickets. Billboard magazine reported a concert executive saying this was potentially, "the biggest mess in the history of our business."

Law requires that the tickets for the Michael Jackson shows be refunded quickly. It seems that refund of primary ticket sales through Ticketmaster will be a comparatively simple process. However, contracts were also in place with secondary ticket sellers which results in higher priced tickets and a more complex route for refunds. However, those that bought tickets through an unofficial reseller such as eBay may never have their tickets refunded. An additional complication is that an unknown number of the tickets were sold internationally.

The money that AEG stands to potentially lose on refunds of ticket sales does not take into account what the company had already invested in the shows themselves. Estimates run in the range of $20 million for 22 sets, elaborate lighting and 300,000 pieces of Swarovski crystal added to costumes and sets. In March of this year, the London-based magazine Reinsurance reported that, because of the level of risk involved, no compay was willing to insure more than the first 10 shows of Michael Jackson's residency. The magazine indicated AEG stood to lose $492 million if the shows did not take place.

This afternoon AEG announced that they would reveal information about ticket refunds early next week.

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