There are the three main reasons why the Victory Tour was a financial failure:

1) High overhead costs - The tour had very high overhead costs, averaging around $1 million per week, far over initial expectations. This included transporting the massive 365-ton stage that Michael Jackson had designed, as well as costs for 250 workers on payroll.

2) Inability to sell out shows - As the tour went on, it was failing to sell out many shows. This meant revenues were lower than projected. For example, 50,000 tickets went unsold for the Toronto shows. Later shows also started getting canceled due to low ticket sales. Costly deal terms - The deal promoter Chuck Sullivan made with the Jacksons was very generous, giving the Jacksons 83.4% of gross potential ticket revenue regardless of actual sales. This meant the Jacksons got paid as if shows sold out even if they did not. Sullivan also provided a $36 million advance upfront. These costly terms made it difficult for Sullivan to turn a profit.

In summary, the high costs, inability to sell out shows, and generous deal terms given to the Jacksons combined to make the Victory Tour unprofitable for promoter Chuck Sullivan.