How Mick Jagger's Tragedy Could Cost the Rolling Stones Up to $10 Million
By
postponing the Australian leg of their 14 On Fire Tour following the
death of Mick Jagger's longtime
girlfriend L'Wren Scott, the Rolling
Stones and multiple parties involved in staging the tour potentially
could be on the hook for as much as $10 million, industry sources tell
Billboard. That includes everything from deposits on venues to the
storage of gear to lost revenue, though it's possible that some or all
of those costs will be covered by insurance policies.
Moving a tour the magnitude of a Stones outing is an epic, expensive
affair, potentially involving millions of dollars in travel,
transportation and other expenses. While some production work would have
been done on the ground, the band had 60 trucks on hold to transport
its equipment, and just chartering the gear could have cost as much as
$250,000, say sources.
Typically, such productions are covered by insurance policies, and
for 14 On Fire, the Stones and their promoters likely had multiple
insurers, say industry sources. The exposure each party faces will
depend on the type of insurance they carried. It is unclear what any of
the specific policies include.
For a cancellation of this sort, insured parties must be able to show
that the circumstances were beyond control, and that the act is unable
to perform for that reason, says a music industry manager/producer
experienced in megatours. Policies for major tours usually allow artists
to name individuals whose severe illness, injury or death would justify
cancellation. These lists generally include wives, children and
sometimes parents and longtime companions, says a source. The cost of
the premium rises in direct proportion to the number of people named.
Given Jagger's 13-year relationship with Scott, who was found dead of a
suicide on March 17 in her New York apartment, it would be difficult for
an insurer to argue that the band must perform.
The Stones' representatives were unavailable for comment. On March
18, the singer posted a statement on his official website that read in
part: "I am still struggling to understand how my lover and best friend
could end her life in this tragic way."
Scott, 49, was a glamorous fashion designer with a high-wattage
clientele including Madonna and Nicole Kidman, but her business is said
to have been crumbling under $6 million in debt. She had recently been
with Jagger on the set of the James Brown biopic he is producing.
In the case of a death like Scott's, the canceling artist typically
is required to reschedule, provided those costs are less than the claim.
The first show of the band's Australian leg had been slated for March
19 in Perth. That performance was quickly postponed, as were the
remaining six appearances for the territory. Australian promoter Michael
Gudinski, whose Frontier Touring is presenting the band locally with
AEG Live, says talks are underway to bring the band back in
October/November.
Regardless of the level of insurance on 14 On Fire, the Stones' visit
to the territory is likely to be financially profitable. The band
hadn't played Sydney and Melbourne since 2006, or Perth and Adelaide
since 1995, and demand was high. The Stones had sold more than 150,000
tickets, according to Gudinski, with a gross that Billboard estimates to
be about $40 million.
If history is a guide, it is unlikely the cancellations will dampen sales for the fall
replacement dates.
In 2006, after the Stones' Keith Richards fell out of a tree in Fiji
and injured his head, the Stones postponed 15 European dates of their A
Bigger Bang Tour while Richards recovered from brain surgery. That tour
went on to gross $558 million, second only to U2's 360° Tour.
14 On Fire is largely a continuation of last year's 50 & Counting
Tour, which grossed $126 million from 23 shows in North America, along
with appearances at London's Hyde Park and the Glastonbury Festival.
