Properly Using the EPR Formula

I'm having problems wrapping my head around the 20 db of headroom (or more) for Concert applications.

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Hello all!

I was wondering if someone could help me grasp some concepts here.  Recently I've been trying to further my knowledge of properly spec'ing power amps for speakers with the EPR formula instead of using "rule of thumb" principles.  

For my test case, I used the following variables:

Lp = 98 

H = 20

Ls = 96

D2= 30

Dr = 3.28 (coverted to ft)

Wref = 1

When I do the formula, I get an answer of 13213 Watts.

The speaker using data for is has an AES power rating of 300W, peak rating of 1200W.

First .....am I correct?  

Second...if I am correct that seems like extreme overkill. Would anyone spec an amplifier that big for a speaker so small? I would think one could turn down the sensitivity of the amp to get below the peak rating of the speaker, but to me it seems a bit much.

Thanks in advance.