Michael Jackson owed over $500M to his creditors at the time of his death, court documents reveal
LOS ANGELES, CALIFORNIA: Michael Jackson was deep in debt at the time of his death.
The music legend, who died of cardiac arrest in 2009, had over $500 million in debt, according to the court documents filed on Friday, June 21.
Michael Jackson's financial woes
According to the petition presented in Los Angeles County Superior Court, Jackson had millions in debt and he desperately needed to pay off his accruing debt of $30 million per year.
Estate executors attorney John Branca and A&R executive John McClain, along with their legal counsel, Jonathan Steinsapir and Saul Ewing, claimed in a March 2024 filing that Jackson's estate was saddled with debt and was on the verge of bankruptcy when he died. The estate is now valued at over $2 billion.
The petition filed in court allows payment to compensate the executor’s attorneys and reimbursement of costs for the period between July 1, 2018 and December 31, 2018.
The executors claim that "Michael Jackson's most significant assets were subject to more than $500 million of debt and creditors' claims with some of the debt accruing interest at extremely high interest rates, and some debt in default."
They also allege that the singer "had additionally incurred considerable expense in connection with preparations for his concert tour 'This is It'" and, as a result, "his untimely death -- virtually on the eve of that concert tour -- left his Estate with financial liability approximating $40 million to the concert promoter, AEG, and little hope of generating income from his already highly leveraged assets."
Certified public accountant WIlliam R Ackerman testified as a defense witness on behalf of AEG Live in the wrongful-death trial in August 2013, reports LA Times.
"He spent a lot of money on jewelry. He was tapped out," said Ackerman back then, according to ET.
What else did the court filing say about Michael Jackson's financial troubles?
The court petition further claims that “"Michael Jackson or one or more of his entities was the named defendant in a number of lawsuits in several states, including California, and several foreign countries" and that "more than 65 creditors' claims were filed in the Estate spawning additional lawsuits."
Attorneys for the executors behind Michael's estate reason that all the trouble arised because prior to his death. "Michael Jackson had changed business managers, lawyers, and personal managers several times in the years immediately prior to his death, most recently in the weeks and months prior to his death, and the transfer of files to his last team of advisors and representatives was in transition at the time of his death," the attorneys stated.
