The death of Michael Jackson, the most successful recording artist in history, could cost AEG Live up to £300m.
AEG owns the O2 venue in London, which was scheduled to host the singer for 50 nights, with the first gig planned for 13 July.
The singer’s death means that not only will AEG have to refund more than a million tickets bought for the 50 dates, but the company is also faced with the prospect of having the 23,000-capacity venue empty for the best part of nine months. The last of Jackson’s 50 shows were scheduled to take place in March 2010.
The largest cost facing AEG from the cancellation, however, will come as a result of AEG's decision to self insure the 50 dates. The action means that the group will be unable to recover any of its losses.
Jackson was also planning to open a casino in Las Vegas, themed around his most successful album, Thriller.