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Discussion: Gaga Could Lose $30 million Due to Cancellation
Member Since: 10/1/2011
Posts: 33,423
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Gaga Could Lose $30 million Due to Cancellation
Star takes a big financial hit after injury forces her to clear her calendar
By Steve Knopper
Rolling Stone
Lady Gaga's canceled Born This Way Ball -- which was set to run 22 more nights at arenas through March 20 -- will lead to nearly $30 million in refunds, according to estimates based on Pollstar data. And that's not counting the huge potential income losses from merchandise, food, beer and parking sales. "It was definitely a blow," says Bernie Punt, sales and marketing director for the Bryce Jordan Center at Pennsylvania State University, which had nearly sold out its 12,500 capacity for Gaga's March 2 gig. "Trust me, I've been hearing nothing for the past 48 hours of so many saddened fans that were looking forward to this. Everybody bought those tickets for Christmas or Hanukkah gifts."
Gaga announced on Tuesday that she was forced to cancel all remaining dates on the tour due to a labral tear to her right hip, which will require surgery. Her world tour in 2012 had grossed $161.4 million, according to Pollstar, behind only Madonna, Bruce Springsteen, Roger Waters and Coldplay; her early dates this year had consistently sold out between roughly 9,000 and 15,000 tickets at each U.S. arena. As pop star injuries go, this wasn't as devastating as Bono's back surgery before a U2 tour in 2010 -- but Gaga's tour, at least so far, has been completely canceled rather than postponed, so the revenue is gone.
"It's such a huge disappointment," says Alipa Patel, marketing and communications manager for Copps Coliseum, where Gaga canceled this weekend's show in Hamilton, Ontario. "It's pretty marquee for a city like Hamilton to get a Lady Gaga. We've had a lot of big names come through, like Bruce Springsteen and Elton John, but with Lady Gaga being so current, it was really something that was going to put us on the map."
Neither Gaga nor her promoter, Live Nation, are likely to fully absorb the financial losses on their own: The cancellations were due to doctor's orders, so insurance would almost certainly kick in. (Gaga's agent and manager, as well as Live Nation reps, declined to comment for this story.) Jordan Center's Punt, though, notes that his advertising costs won't be recouped. The Gaga show was announced last fall during a Penn State home football game of 100,000 fans, a rarity on campus.
"Really the biggest loss is opportunity," says Gary Bongiovanni, editor-in-chief of Pollstar. "She's hot right now, and she has to sit on the sidelines. It's hard to predict what the real impact's going to be."
http://t.entertainment.msn.com/cost-...llar30-million
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Member Since: 5/21/2012
Posts: 13,571
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Aslong as she gets better and comes back it doesn't matter. She has enough money.
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Member Since: 3/15/2009
Posts: 4,228
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awwwww
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Member Since: 1/13/2012
Posts: 17,447
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She has lotsa money anyway.
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Banned
Member Since: 6/11/2012
Posts: 3,819
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Nope, everyone is taking billboard's article and twisting it. Because gaga was injured during the tour, insurance will cover most of it. The rest will be fronted and Gaga won't have to pay a dime.
It's unfortunate that so many venues were relying on this and won't be able to make any money now. It really puts into perspective how massive her tour was. It's also funny that people are claiming the tour wasnt selling when all of these spokespeople for the venues have said they were looking forward to Gaga's massive show at their venues.
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Member Since: 10/1/2011
Posts: 33,423
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Quote:
Originally posted by LDYGG
Nope, everyone is taking billboard's article and twisting it. Because gaga was injured during the tour, insurance will cover most of it. The rest will be fronted and Gaga won't have to pay a dime.
It's unfortunate that so many venues were relying on this and won't be able to make any money now. It really puts into perspective how massive her tour was. It's also funny that people are claiming the tour wasnt selling when all of these spokespeople for the venues have said they were looking forward to Gaga's massive show at their venues.
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That's one thing I was a little unsure about, her insurance will cover 30 million dollars for lost tour costs What kind of insurance is this?
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Member Since: 9/11/2010
Posts: 14,221
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She could've lost more money had she kept pushing herself though. Like career ending injuries maybe. So it's all good. It happens. She's human. Her life and health >>>>>>>>> $30 million.
She should finish these dates around album release time and give these people a sneak peak at some of the new ARTPOP songs to make it up to them. I wouldn't be surprised if she did.
But she better not tour again until next year.
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Member Since: 12/2/2011
Posts: 52,765
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so with the cancellation of the tour and the end of the BTW era does this mean ARTPOP era will start earlier than expected
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ATRL Administrator
Member Since: 6/29/2002
Posts: 77,601
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It's more like they didn't make the $30 million that they could've made. There's no $30 million that needs to be covered. They got it by selling tickets and now they have to give it back to the people who bought them. I don't understand the need for a dramatic article.
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Member Since: 8/30/2011
Posts: 21,667
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Quote:
Originally posted by KingsOfLeon1994
so with the cancellation of the tour and the end of the BTW era does this mean ARTPOP era will start earlier than expected
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let's hope
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Banned
Member Since: 6/11/2012
Posts: 3,819
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Quote:
Originally posted by jayyyxtee
That's one thing I was a little unsure about, her insurance will cover 30 million dollars for lost tour costs What kind of insurance is this?
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Yes, the insurances are big.
However, the money they're talking about is basically the 200,000 tickets being refunded. They're not really losing that money because they never made it. Any other costs will be covered.
Quote:
Originally posted by KingsOfLeon1994
so with the cancellation of the tour and the end of the BTW era does this mean ARTPOP era will start earlier than expected
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No, Gaga has already has a date set and is sticking to it.
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Member Since: 9/1/2012
Posts: 2,748
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Damn, it was going to come within a hair of the Monster Ball's gross with half the shows. But she still made an amazing tour gross nonetheless.
Even making $100 million in one tour is such an amazing achievement that very few artists ever make and she does it so effortlessly
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Member Since: 12/2/2011
Posts: 52,765
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Quote:
Originally posted by LDYGG
Yes, the insurances are big.
However, the money they're talking about is basically the 200,000 tickets being refunded. They're not really losing that money because they never made it. Any other costs will be covered.
No, Gaga has already has a date set and is sticking to it.
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What date is that ?
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Member Since: 4/15/2011
Posts: 13,926
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I wouldn't care if it was $100 million. She has not taken a decent break since she came out, she needs this.
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Member Since: 7/21/2010
Posts: 12,818
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So what. Your health comes first.
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Member Since: 2/27/2012
Posts: 12,567
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Does that kind of money even matter to her? I think the break is worth it.
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Member Since: 10/1/2011
Posts: 33,423
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Quote:
Originally posted by KingsOfLeon1994
so with the cancellation of the tour and the end of the BTW era does this mean ARTPOP era will start earlier than expected
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I'm inclined to believe later rather than sooner
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Member Since: 12/13/2011
Posts: 12,192
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And this is why people have insurance
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Member Since: 3/18/2008
Posts: 40,057
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Oh no!
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Member Since: 5/28/2012
Posts: 11,243
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It's not like she lost money, she just didn't make it.
Hope she recovers soon
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