The music and entertainment promoter AEG, which was hired to manage Michael Jackson's farewell 50-concert British tour, had an insurance policy that covered some expenses were Jackson to die of a drug overdose, the celebrity site TMZ reported Friday.
Large insurance policies covering entertainers are not uncommon, and are used by promoters and corporate owners as a hedge against massive financial losses that could occur should a star pass away. But according to the report, the policy didn't cover death by natural causes -- only death by overdose.
AEG CEO Randy Phillips purportedly stated that the $17.5 million policy issued by Lloyd's of London didn't cover death by natural causes and will fall far short of the money spent on Jackson's advance, producing the show and some of Jackson's debt and staff expenses.
Those costs are estimated to be between $25 and $30 million. Estimates for sales on Jackson's tour are said to have been in the neighborhood of $50 million.
-John Byrne