Court documents filed on June 21 and reviewed by People reveal that Michael Jackson was more than $500 million in debt at the time of his death. The musician died on June 25, 2009, at the age of 50 following a cardiac arrest. His death was ruled a homicide after an autopsy established Jackson’s demise was caused by a combination of sedatives and propofol, an anesthetic.
Jackson’s debts were reportedly the result of his penchant for expensive jewelry and accessories; accrued debts of roughly $30M each year; and fees related to the terminated concert tour which Jackson was mounting at the time of his death. Jackson owed about $40M to concert promoter AEG when he died, which fell to his estate to pay off. At the time, there was “little hope of generating income from [Jackson's] already highly leveraged assets."
But back in the ‘90s, Jackson was already racking up extreme debts. He owed $140M in 1998, and from June 2001 until June 2009 the amount ballooned to $310M. A March 2024 court filing revealed that Jackson was on the verge of filing for bankruptcy when he died.
After Jackson’s passing, "65 creditors' claims were filed in the estate spawning additional lawsuits, of which several resulted in litigation," according to the documents. "The Executors were able to renegotiate and restructure financing arrangements that existed at the time of Michael's death, at substantially reduced interest rates, enabling the estate to avoid the loss of any assets to the lenders and ultimately to satisfy the encumbrances that existed at the time of Michael's death.”
Still, multiple law firms are petitioning to be paid for their work with Jackson’s estate from July 1 until December 31, 2018. The total amount owed to the various firms is $3.5M.
"Although the Executors have eliminated the Estate's debt, have resolved virtually all of the creditors' claims and litigation, and have successfully solidified the MJJ business as a significant entity in the music industry, there remain challenging business, tax and legal issues that the Executors and their counsel continue to deal with," the petition states.
Another notable legal battle facing the estate is an impending trial stemming from two men accusing Jackson of sexual molestation. Also named in the suit is the singer’s MJJ Productions, which is alleged to have instituted policies allowing Jackson to be alone with underage children.
The case was allowed to proceed last August, but a trial date has not been set. Jackson’s estate denied any wrongdoing in their filings. They did not immediately respond to a request for comment from Men’s Journal.
Jackson was well-known throughout his life for his extravagant spending. His infamous Neverland Ranch was festooned with a working train station, an amusement park complete with roller coasters and a Ferris Wheel, a lake, and a zoo. The property fell into disrepair before Jackson’s untimely death, but has since been rehabbed .
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