SINGAPORE, Feb 11 — Concert promoter Midas Promotions has sued LAMC Productions for alleged reneging on an agreement on a joint venture to bring stage comedian Russell Peters to Singapore in 2012.

The company claims it is entitled to 50 per cent of the profits from the two sold-out shows, which it estimates at S$500,000 (RM1.5 million) or more.

LAMC Productions, however, contends that there is no joint venture to speak of since Peters agreed to stage his Notorious World Tour at the Singapore Indoor Stadium on May 5 and 6, 2012, on a percentage deal, instead of on a flat fee basis as the two promoters had agreed on.

In the hearing that started yesterday, the court heard that Midas Promotions’ founder and managing director Michael Hosking approached LAMC Productions around March 15, 2012, with a proposal to co-promote Peters’ show.

Over a phone conversation with LAMC Productions’ co-owner and co-director James Ross Knudson, Hosking said both agreed to each submit a flat fee of US$200,000 separately to Peters’ agent, and that whichever party got the show would split the cost and profits on a 50-50 basis.

The co-owner and co-director of LAMC Productions, Lauretta Alabons, who took the witness stand today, said she reluctantly went along with this agreement to “save face for her husband (Knudson)” even though she was already in talks with Peters’ agent since December 2011.

Peters’ agent eventually rejected the offers from both companies, insisting on a percentage deal instead.

Alabons claimed it was clear that Peters’ agent would only agree on a percentage deal and did not want to work with Midas Promotions.

Since there was no discussion for Midas Promotions and LAMC Productions to work together based on a percentage deal, as it “would not have made financial sense”, there was no joint venture to speak of, said Alabons. In her affidavit, Alabons said a second show date on May 6, 2012, was only added around April 11, 2012, as the show for May 5, 2012, sold out in early April.

A second show “was not contemplated” at the time when Hosking first approached LAMC Productions, she said.

Hosking claimed that LAMC Productions “would have made about S$500,000 or more in terms of profits from the show based on our estimate of the overheads and costs, and our knowledge of the fact that both shows were sold out at a venue where the capacity was set up for in-excess of 10,000 per night”.

Alabons, however, revealed that LAMC Productions’ net revenue from the show on May 5, 2012, was S$122,137.74.

Midas Promotions and LAMC Productions previously worked together to bring musical acts Placebo and Justin Bieber to Singapore in March 2010 and April 2011, respectively.

The hearing for the case continues. — TODAY