The Big Day Out is reeling mid-tour, plagued by detailed rumours that organisers have inflated attendance figures and that its owners, AJ Maddah and Texas-based company C3, are likely to face off in court as they face losses between $8 million and $15 million.

Several senior music industry sources have also told Fairfax the touring festival's chief executive officer, Adam Zammit, was sacked this week with two shows remaining: Adelaide on Friday and Perth on Sunday. It is believed Mr Zammit's plane tickets to Adelaide were cancelled, but another source said he has since been re-hired.

Confetti covers the crowd as Arcade Fire play their final song at the Big Day Out in Sydney. Credit:Rachel Murdolo

Mr Zammit, who was appointed in November 2011, was in charge of the day-to-day planning and operations of the event, and it is believed he oversaw several clear-outs of long-standing Big Day Out staff.

One source claimed the only Big Day Out so far to achieve attendance of 30,000 was the Auckland event, run by promoter Campbell Smith. The Australian legs, promoted by Mr Maddah, achieved much lower numbers, believed to be around half 2013 attendance figures. Sydney is believed to have drawn 27,000, Melbourne 26,000 and the Gold Coast 23,000. Organisers are believed to have told media 35,000 attended in Sydney and the Gold Coast and have reportedly faced questions from the management of headliners such as Pearl Jam over their estimates.