Michael Jackson was over $500 million in debt at the time of his death on June 25, 2009, according to court documents filed on Friday, June 21, and obtained by PEOPLE. The King of Pop died at age 50 of apparent cardiac arrest in Los Angeles, just a day after a six-hour dress rehearsal for his planned “This Is It” residency at the O2 Arena in London.
Despite his preparations for a major comeback, Jackson’s spending habits had left him deeply in debt, accruing around $30 million annually, as reported by the Los Angeles Times. Certified public accountant William R. Ackerman testified in the 2013 wrongful-death trial that Jackson spent lavishly on charity donations, gifts, travel, art, and furniture, noting, “He spent a lot of money on jewelry. He was tapped out.”
By 1993, Jackson had begun accruing significant debt, and by 1998, he owed $140 million. From June 2001 to June 2009, his debt increased by approximately $170 million, with loan interests ranging from 7% to 16.8% annually. Jackson used his stake in a song catalog, including the Beatles hits, as collateral for $270 million in loans from Bank of America, later sold to Fortress Investment Group in 2005.
Randy Phillips, former CEO of AEG Live, told Rolling Stone in 2009 that Jackson aimed to clean up his finances and was ready to stop living like a vagabond and earn money again.
After Jackson’s death, his estate faced significant financial liabilities, including a $40 million debt to concert promoter AEG. However, estate executors John Branca and John McClain, with their legal team, managed to renegotiate and restructure Jackson’s debts. Their efforts prevented the loss of any assets and ultimately satisfied the encumbrances existing at Jackson’s death. Notably, they secured an interest in EMI Music Publishing, later sold to Sony Corp. for approximately $300 million in 2018.
Jackson’s estate, now valued at over $2 billion, continues to handle various legal issues. Executors have requested over $3.5 million in legal fees for work done in 2018. They have resolved most creditors’ claims and litigation, solidifying the MJJ business as a significant entity in the music industry.
One ongoing legal battle involves accusers Wade Robson and James Safechuck, who were granted a trial in August 2023. Their case against Jackson’s companies, MJJ Productions and MJJ Ventures, claims complicity in alleged sexual abuse. Jackson’s estate denies any wrongdoing, maintaining confidence in Jackson’s innocence.
Jackson’s attorney, Jonathan Steinsapir, expressed disappointment with the court’s decision to proceed with the trial but remained confident that the truth will ultimately prevail, quoting Jackson: “Lies run sprints, but the truth runs marathons.”