JESSICA and Ashlee Simpson are seeking a new sponsor for their MTV Video Music Awards after-party because Jessica's outrageous demands have forced People magazine to pull out.

The singing sisters are planning to host a huge party and perform together at the Setai resort, Miami on 28 August (05) and assumed People would be happy to pick up the bill - but the magazine baulked when they realised the extent of Jessica's planned extravagance.

An insider tells, "Her demands became outrageous. She wanted everyone to set up shop at 6am and be there for 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."

And People were further upset when Jessica signed a $200,000 (GBP112,000) contract allowing OK! magazine exclusive access.

A Simpson representative says, "There were discussions with People about their VMA after-party, but Jessica and Ashlee were unable to do the party with them because of other sponsors involved with the event that would create conflicts with Jessica's master licensing deal and Ashlee's contract with Thermasilk.

"Both girls are extremely conscious of their business deals and would do nothing to violate those relationships."