Jackson refunds announced

LONDON – More than 750,000 Michael Jackson fans can get full refunds for the pop star’s canceled 50-night “This is It” concert extravaganza – or opt to receive souvenir tickets instead, the promoters announced last week.

In a move that could help recoup some of its losses from the ill-fated tour, Los Angeles-based AEG Live said fans could choose to receive the actual tickets, which it said feature graphics “inspired and designed” by Jackson himself. Fans have until Aug. 14 to take the ticket offer.

For those opting for a refund, all service charges paid to authorized ticket sellers will be included, the statement said.

Fans spent more than $90 million on tickets, which were priced between $82 and $124, though some went for hundreds of dollars on Internet auction sites.

AEG Live may be counting on die-hard fans to want to hold on to their tickets as bittersweet reminders of what might have been – or to cash in later should they become collector’s items. Many did just that after Elvis Presley died in 1977.

Elliott Parkin, a 27-year-old construction worker, said his friends plan to keep their tickets to honor Jackson.

“He’ll be remembered for his music above all else,” said Parkin, who had planned to attend one of the London shows.

Jackson’s death has left AEG Live, which operates the 02 Arena where the pop star was to have performed, with a colossal problem.

In addition to the money taken in by ticket sales, which must be refunded, the company had already paid Jackson millions and spent millions more getting ready for the planned July 13 premiere – not to mention that one of the city’s biggest arenas has been left with 50 open nights.

Promoters are generally required to take out insurance to cover concert cancellations or non-appearances, said Malcolm Tarling, a spokesman for the Association of British Insurers.

Many of the policies are extremely specific, allocating levels of payouts according to the reason for the cancellation – including the cause of any death. If a drug overdose was specified as a risk with lower coverage, AEG may be entitled to less money.

Much of the company’s ability to weather the financial storm caused by Jackson’s demise may depend on how much of its losses are covered by insurance.

And that will be determined in part by what the Los Angeles County coroner’s office finally determines as the cause of the mega-star’s death. Officials have warned it will be up to six weeks before a cause of death can be pinpointed because complicated toxicology tests are needed.

AEG Live has so far been tightlipped about the amount of insurance coverage it had for the concerts and which companies were the underwriters. Insurance market Lloyd’s of London says its member corporations underwrote some policies, but said AEG likely had multiple contracts, with several insurers all taking on a portion of the risk.

While these issues are being worked out, eBay executives extended a buyer protection program to cover anyone who bought a ticket through the company’s Web site.

“You’ll be covered for the full amount of the transaction, not just the face value of the ticket,” eBay spokeswoman Jenny Thomas said. That means people who paid three or four times the face value for a chance to see Jackson should get all their money back.