Report: Phil Anschutz has already recouped all losses from canceled Michael Jackson tour

In a June blog," I described Mile High gazillionaire Phil Anschutz as "among the sharpest businessmen to ever call Colorado home" -- and he's proven it again by the way he's turned a possible financial bath into what looks like an impressive windfall. AEG Live, one of Anschutz's many companies,...

By Michael Roberts

October 26, 2009

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In a June blog," I described Mile High gazillionaire Phil Anschutz as "among the sharpest businessmen to ever call Colorado home" -- and he's proven it again by the way he's turned a possible financial bath into what looks like an impressive windfall. AEG Live, one of Anschutz's many companies, was slated to promote the Michael Jackson tour that never was -- and because the firm had been unable to secure insurance for all the dates, the gigs' cancellation seemed likely to cost Anschutz in the tens of millions.

So how has he managed to turn all that red ink black? A little film called This Is It.

The documentary, built from rehearsal footage of the aborted tour, is scheduled to open on Friday, and theaters all over the world have already sold out early screenings. That's good news for Anschutz, as outlined in a Bloomberg story:

Jackson's estate gets 90 percent of profit from the movie after Sony is paid for its role, including marketing and distribution fees, according to two people with knowledge of the arrangement. Concert promoter AEG Live, owned by Denver billionaire Philip Anschutz, gets the remaining 10 percent.

The promoter recouped about $36 million it invested in Jackson's canceled tour from the $60 million Sony paid for rehearsal footage, according to one of the people.

Are these numbers accurate? An interview request has been left with AEG Live's Michael Roth; when and if he replies, I'll update this item. In the meantime, though, it appears that what looked to be a rare misstep by Anschutz has landed him in a very good place. As usual.

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Michael Roberts began his career with Westword in 1990 as music editor. In 1999, he took on a new role, full-time media reporter, as author of a column called The Message. In 2008, he became the lead writer for Westword's news blog, The Latest Word, a position he held until January 2023. Michael continues to freelance for Westword, covering everything from business to sports and the media; he also contributes to Jazziz, a national music magazine. He holds a bachelor's degree from what is now Colorado Mesa University and master's degrees from the University of California, Los Angeles, and Northwestern University.

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