Personal Tragedy for Mick Jagger Could Cost Rolling Stones Millions of Dollars

Quote :

Billboard reports that the postponement of the Australian leg of the 14 On Fire tour for the Rolling Stones after the passing of Mick Jagger's longtime girlfriend, L'Wren Scott, could cost the band and multiple parties involved in staging the tour as much as $10 million. This would include deposits on venues to the storage of gear to lost revenue. However, some or of all of these costs could reportedly be covered by insurance policies.

The band had 60 trucks to transport equipment, and chartering their gear costs as much as $250,000, according to industry sources. But, since productions and tours such as this are covered by insurance policies, the Rolling Stones and their promoters most likely had multiple insurers. The costs each party faces is going to depend on the type of insurance they carried, but the specific policies included is unclear.

According to the report, when a cancellation of this type happens, the insured parties have to be able to show that the circumstances were beyond their control and unable to perform because of this. Policies for major tours usually allow artists to name individuals whose severe illness, injury or death would justify a possible cancellation. According to a Billboard source, Lists such as this generally include wives, children and sometimes parents and longtime companions. Premium costs rises in direct proportion to the number of people named. Due to Jagger's 13-year relationship with Scott, who was found dead of a suicide in her New York apartment on march 17, an insurer would have difficulty arguing that the band must perform.

The band's first Australian show was set for March 19 in Perth, but the performance and their six appearances for the territory were postponed after Scott's death. According to promoter Michael Gudinski, talks are now underway to bring the Stones back in October-November.

The Stones hadn't played in Sydney or Melbourne since 2006, or Perth and Adelaide since 1995. Gudinski said that the band had sole more than $150,000 tickets with a gross estimated to be in the range of about $40 million.

Read more at http://www.411mania.com/music/news/317139/Personal-Tragedy-for-Mick-Jagger-Could-Potentially-Cost-Rolling-Stones-and-Tour-Promoters-Millions-of-Dollars.htm#I2XVQ7J1xGOqWTHS.99