Fire in a crowded theatre

Nobody panic!!!

If someone were to yell 'FIRE!' in a crowded theatre, they should be taken out in cuffs. It's pretty clear cut. Yelling 'FIRE!' would be reckless and wrong. It would likely cause panic and cost lives. 

But now, let's say that an actual serious fire breaks out backstage during a full house performance. Imagine if the manager went to the front of the audience and said: 

Folks, I hate to interrupt the show, but you might have noticed a bit of smoke in the theatre. There's nothing to worry about. Believe me. The Chinese restaurant next door burned some egg rolls--that's what a lot of people are saying--so we'll see what happens with that. What I can tell you is that we have this under control. The smoke is going to go away very, very soon. If you hear a fire alarm, don't worry about it. That just means that the system is working perfectly and I can tell you the alarm system I installed is the best one anywhere. Nobody has a fire alarm like we do. The best. So everybody please stay in your seats and enjoy the show!

What should happen to that manager?