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Topics: Michael Jackson, Music, Entertainment, Business, Money
Emily Brown
Topics: Michael Jackson, Music, Entertainment, Business, Money
New court documents filed by the executors of Michael Jackson's estate have revealed the pop star was more than $500 million in debt when he died.
Jackson spent decades in the spotlight before his death in 2009, having released more than a dozen number one songs and multiple albums, as well as appearing on tours for his fans across the globe.
The singer's fame meant that he died with an estimated net worth of between $482 million and $500 million, according to varying reports, but it's now been revealed that he actually owed a similar amount in debt.
The news comes through a petition filed by Jackson's executors, John Branca and John McClain, who are seeking authorization to pay various legal firms for services they provided to the estate in 2018.
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The filing, obtained by Entertainment Weekly, provides details about Jackson's assets before and since his death, and claims his debt has caused issue for the executors.
The petition explains: "The Executors have faced extraordinarily challenging circumstances.
"Among other issues, at the time of Michael Jackson’s death, 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."
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Further costs had accrued as Jackson prepared to make a comeback with his This Is It residency, which was set to begin in London just a couple of weeks after the date of his death.
After Jackson died, the executors claim they have managed to resolve 'virtually all of the creditors’ claims and litigation', while also solidifying 'the MJJ business as a significant entity in the music industry'.
One of the ways the executors helped to get the estate in a better financial position was by buying a stake in EMI Music Publishing for $50,000 in 2012, and selling it for $300 million in 2018.
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The estate has also made gains with the help of projects like MJ the Musical on Broadway, and the upcoming biopic film, Michael.
Now, Branca and McClain are hoping to compensate law firms who provided services that year for more than $3 million.
Their request comes after Jackson's three children, Paris, Bigi and Prince, were cut off last month from receiving money from their dad's estate amid a dispute with the IRS.
As the value of Jackson's estate had to be determined, Branca and McClain rejected a request that a portion of it could be distributed to the Michael Jackson family trust, meaning the kids were cut off pending the resolution of the issue.