More than 15 years after his death, new reports have revealed that pop superstar Michael Jackson was more than $500 million in debt at the time of his death.
According to documents recovered by media such as People and E! News, which date back to June 21, 2009 but were revealed until now, the “King of Pop” had a large debt due to the singer’s investment in the tour that “This Is It” was about to start.
Jackson had incurred considerable expenses in connection with preparations for his “This Is It” concert tour.
Michael Jackson went into debt for his comeback and his “tastes”
According to the documents, which were filed in Los Angeles County Superior Court after the actor’s death, Jackson owed nearly $40 million to concert promoter AEG.
During the civil liability trial that began in August 2013, 4 years after the celebrity’s death, it was also revealed that the “Thriller” singer already had a debt, dating back to 1998, of nearly $140 million.
Due to the above, and between the years of 2001 and 2009, the singer’s debt increased to $170 million dollars due to the interest on the loan, which went from 7% to 16.8%. Given this factor, The New York Times also mentioned that the singer used as collateral for the loan he acquired the catalog of The Beatles songs that he had, which has an approximate value of nearly $270 million dollars.
However, Michael Jackson’s debts have also reportedly increased due to the singer’s excessive spending on a large number of gifts, trips, art, furniture and large donations to charities.
During the trial process, the executors of the dancer’s will revealed that his estate was on the verge of bankruptcy. Despite this, the same executors managed to renegotiate the existing debts, which allowed the loss of assets to be avoided.
The singer’s death, as in many other cases, caused his estate to increase to the point where it now amounts to more than 2 billion dollars. According to experts, the debt has been completely eliminated and all creditor claims and litigation have been resolved.
Today, thanks to the organization “Michael’s Trust,” which provides monetary benefits from various charitable institutions, the singer’s children, Prince, 27, Paris, 26, and Bigi, 22, have unique economic advantages.
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