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(NewsNation) — Jennifer Lopez may be having her worst year ever, but she may have gotten a multimillion-dollar consolation prize.
I’m told that while Lopez canceled her “This Is Me…Now/Live” tour, she got to keep some of her megawatt signing bonus, which insiders say was a cool $10 million.
A 2020 report in Rolling Stone noted that due to COVID, Live Nation changed its pay structure with artists. Previously, an artist would have kept 100% of an advance if a tour was canceled, but now, “if a show is canceled due to poor ticket sales, the artist will receive just 25% of a predetermined guarantee.”
Lopez’s tour was canceled after poor ticket sales, with Live Nation announcing on May 31: “Representatives for (tour promoter) Live Nation announced today that the Jennifer Lopez US Summer 2024 Tour ‘THIS IS ME…LIVE’ is canceled, citing … ‘Jennifer is taking time off to be with her children, family and close friends.’”
But did she cancel (which, according to strict Live Nation terms, “if an artist cancels a performance in breach of the agreement, the artist will pay the promoter two times the artist’s fee”), or was she allowed to save face and issue an excuse rather than admit to slow sales? I’m told it was the latter. (Although to be fair, she is having a helluva year, and going on tour singing love songs about a marriage that is crumbling is not fun).
If Lopez’s advance was $10 million, she would have pocketed $2.5 million.
However, a source close to Lopez vehemently refuted that the singer kept any money.
“The tour was in progress; people needed to be paid,” the source said. “Unraveling a tour is not easy (or cheap).”
“People were already on salary. Any money is held in escrow and is doled out by the bank to pay vendors, dancers, (etc), as well as severance for work they now won’t be doing. Any other money remains (in escrow) until the (next) tour. And there will be a next tour. And everyone who worked on this tour will be rehired for the next one.”
Meanwhile, my Live Nation source detailed just how tour cancelations go down.
“It always starts with the venue/Live Nation saying to the artist’s manager and says how bad the sales are and then the manager says, ‘Let’s hang in there — I think they’ll pick up as we get closer.’”
But, like the “This Is Me…Now” tour, sales didn’t pick up. Seven cities were canceled from her “This Is Me…Now” tour due to poor sales and even after the tour was rebranded as “This Is Me… Live,” they were still slow. (The Lopez source disputes this saying, “The majority of tickets on any tour are sold three to five weeks before the concert date, Lopez canceled her tour before then. This is about her health and well-being. Not money.”)
The Live Nation source continued: “When it doesn’t pick up, Live Nation has to say to the artist and the manager, ‘Do you really want to go into a venue that is half full?’ Once that happens, the artist starts doubting themselves and finds a way to cancel… saving Live Nation major money.”
But while $2.5 million is a lot of money for most people, for a large corporation like Live Nation, the money spent on pre-marketing and advances is a tax write-off — and it saves them from shelling out for a huge tour that isn’t selling.
“Michael Rapino (LiveNation CEO) is a genius for being able to get out of deals like this,” the insider added.
Live Nation declined an on-the-record comment. Lopez’s rep didn’t return emails.
However, the source close to Lopez insisted the multi-hyphenate entertainer will be back; just not this year.
“She will go on tour with LiveNation, and she will have a Vegas residency… but not until the Fall of 2025 at the earliest. She has a lot on her plate right now and needs to regroup.”
At this point, one’s heart has to go out to Lopez, who has seemingly had the worst year ever.
So far this year alone, Lopez has had to endure:
- February 16: “This is Me… Now” debuts alongside her accompanying documentary “The Greatest Love Story Never Told” (which follows her love story with Ben Affleck), and a “companion” musical film “This Is Me Now… A Love Story.” All of which flopped and the album is Lopez’s worst performing ever.
- March 13: Seven cities were canceled from her “This Is Me…Now” tour due to poor sales.
- April 2: With lagging sales, Lopez’s tour is rebranded as “This Is Me… Live,” featuring her greatest hits instead of the treacly love songs from her latest album.
- April 11: Lopez goes back to work filming “Kiss of the Spider Woman,” while Affleck leaves for Los Angeles.
- May 6: Lopez co-chaired the annual Met Gala and showed up alone after Affleck refused to attend (Claiming he was filming in L.A.). On what was supposed to be a glorious homecoming for Lopez, she appeared gaunt and furious, snapping at reporters on the red carpet.
- May 12: Lopez spent Mother’s Day 5,643 miles away from Affleck in Paris with her daughter Emme while Affleck was hanging out with his children in L.A. next to his ex-wife, Jennifer Garner.
- May 15: Lopez spotted house hunting with her producer Elaine Goldsmith-Thomas despite Lopez and Affleck dropping $60 million in cash for a Beverly Hills mansion last June.
- May 24: Lopez’s Netflix movie “Atlas” premieres and is panned.
- May 28: Affleck attends his daughter Violet’s graduation without Lopez.
- May 29: It’s reported her $90 million deal with MGM in Las Vegas is kaput.
- May 31: Live Nation announces tour cancellation.
- June 2024: Lopez and Affleck put their $60 million house on the market. He is reported to be staying in a rental, alone.