Jessica Simpson: Hollywood’s Latest Diva

PEOPLE magazine pulled out as a sponsor of a party Jessica and Ashlee Simpson were set to host in Miami after the MTV Video Music Awards because Jessica made exorbitant demands that would have cost the weekly hundreds of thousands of dollars.

The Simpson sisters were going to host and perform Aug. 28 at the Setai resort. But an insider said: "Her demands became outrageous. She wanted everyone to set up shop at 6 a.m. and be there for like 24 hours. She wanted $20,000 for hair and make-up, $80,000 for a technical production budget which her father, Joe, was overseeing, and over 30 rooms at the Setai."

Another issue, according to a publishing source, was the ill-advised $200,000 contract Jessica signed recently giving OK! magazine exclusive access to the star.

"Her hosting the party for People magazine was a direct violation of her contract with OK! If she had gone through with it, she would have been sued." People execs decided Thursday night to back out.