AEG President Timothy J. Leiweke and Mayor Antonio Villaraigosa said in a joint statement that $1 million will be provided to the city's general fund, and the rest of the money will go to the Los Angeles Police Foundation for crime-fighting equipment.
"I applaud this team effort and thank everyone involved for doing what was best for the people and the City of Los Angeles," Mayor Villaraigosa said. "Through continued good corporate citizenship of AEG and the Michael Jackson estate, we will be able to promote and support important civic events that hold so much meaning for the people of Los Angeles and bring us together as a city."
Jackson died last June 25 at age 50 from an overdose of a powerful sedative he was using as a sleep aid.
The city's chief budget analyst says the city incurred $1.3 million in costs for police services, permits, transportation and cleanup during the July 7, 2009 memorial.
"In these challenging economic times, I appreciate AEG and the Jackson estate for making this contribution to our city," said Council Member Jan Perry. "Through this donation, they have proved once again that they are conscientious corporate citizens who are committed to Los Angeles."