Fans were livid after waiting for hours Saturday to discover that the R and B artist was not going to perform at an event at Tolleson Park called Soulfest.
"Everybody just started grabbing chairs and throwing them up on the stage," said James Douglas.
On his Facebook page, Saturday night Kelly apologized to his fans in Arizona saying he did not perform because he was not paid by the promoter.
"This is nothing personal against my fans, but this is business y'all," said Kelly.
Promoter Aubrey Morris spoke with FOX 10 by phone; he insists he paid Kelley.
He e-mailed copies of wire transfers that he says proves Kelly was paid $70,000 up front. The promoter said he would pay the rest after the event. He also said he lobbied with Kelly throughout the evening to try and get him to perform.
"Between that and our draw, we would pay him, and we would like him to take the stage for his fan base, and he refused to do that," said Aubrey Morris.
Fans were upset because they paid between $60 to $300 for VIP tickets.
It's not the first time Kelly has not shown up for concert engagements.
He's accused of sending an impersonator, R. Jelly to perform in his place at a Louisiana concert in 2013. His fans were not amused.
Just last month more trouble when a Dallas promoter sued Kelly who he says took $100,000 in pre-payment, but didn't show up to perform.