Court records reveal that the singer was more than $500 million in debt in 2009
A court document from Michael Jackson’s estate released this week revealed that the singer faced significant financial difficulties before his death in 2009. The King of Pop’s accumulated debts exceeded $500 million (about R$2.7 billion), according to the filing.
Creditors and processes
When he died at age 50, shortly before his “This is It” tour, Michael Jackson left behind a complex set of assets and liabilities. Known for his lavish lifestyle, he racked up significant debt, including spending on Neverland Ranch, art purchases, jewelry, and private jets. A forensic accountant revealed that Jackson was taking out more than $30 million a year in interest payments, mostly on debts to AEG Live, the company that organized his tours.
According to the document, filed in Los Angeles County Superior Court, Jackson still owed about $40 million to AEG Live. The file details that 65 creditors have filed claims following the singer’s death, resulting in multiple lawsuits, with high interest and fees adding to the debts.
The debt came to light when the administrators of Jackson’s estate, John Branca and John McClain, filed court documents to approve the payment of approximately $3.5 million to law firms for services provided in the second half of 2018. In archive, the executors claim that most debts have been repaid and most disputes have been resolved.
Millionaire agreements with Sony
During the 1980s and 1990s, Michael Jackson earned hundreds of millions of dollars from hit albums and global tours. A millionaire, he decided to purchase the Beatles’ music catalog for $47.5 million in 1985, a deal that proved to be one of the best investments of his life.
The content was later sold to Sony/ATV Music, which gave him a 50% stake in the company. In 2016, Sony purchased this stake for $750 million, paying for the property.
In 2023, Sony returned to negotiations with the artist’s rights holders, purchasing 50% of the singer’s music catalog for approximately $600 million. This transaction values the entire catalog at approximately $1.2 billion, which includes music performance and recording rights, as well as film projects.
So no matter how much debt he has, Michael Jackson still generates a lot of profit for his heirs. By the way, I am currently in dispute with the IRS following a tax audit of the estate’s recent dealings.
Source: Terra
Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.
