Court documents show Michael Jackson was more than $500 million in debt at the time of his death

At the time of his death on June 25, 2009, Michael Jackson was owed more than $500 million, based on recent court documents obtained by Michael Jackson. People Thursday.

The King of Pop, who died at the age of 50 from cardiac arrest, reportedly had “excessive spending habits” and was having to repay “an accumulating debt of $30 million a year,” People magazine reported, citing Los Angeles Times.

On the night of Jackson’s death, he rehearsed for six hours at the Staples Center for his upcoming “This Is It” residency at the 02 Arena in London. The “Beat It” singer reportedly underwent several “grueling” dress rehearsals in preparation for performances scheduled for July 2009 to March 2010.

When Jackson’s family sued AEG-Live for wrongful death in August 2013, auditor William R. Ackerman testified on behalf of the company, based on the LA Times. During his testimony in a downtown Los Angeles courtroom, Ackerman spoke about Jackson’s funds, revealing that the singer spent money on travel, gifts, furniture, art and charitable donations.

“He spent a lot of money on jewelry,” Ackerman told jurors at the time. “He was exhausted.”

Jackson began racking up debt as early as 1993, based on the LA Times. By 1998, he reportedly owed $140 million, and Jackson’s debt grew by nearly $170 million between June 2001 and June 2009. Interest on Jackson’s loans rose during that time, starting from nearly 7% to 16.8% annually, based on Ackerman’s testimony.

This New York Times in 2006 reported that Jackson used his shares of the song catalog – which included songs by The Beatles – as collateral for nearly $270 million in Bank of America loans per person. said Randy Phillips, former CEO of AEG Live Rolling Stone that Jackson “wanted people to see his work, not just talk about his lifestyle.”

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“Michael was a very smart marketer,” Phillips said in a 2009 interview. “People say he was weak and manipulative, but he was powerful and manipulative. He was ready,” Phillips told the publication. “He desired to get his funds in order. He was able to stop living like a bum and calm down and make cash again.

Jackson’s estate was reportedly saddled with the late singer’s debt after his death. Concert promoter AEG was owed about $40 million, based on the estate’s petition, based on People , “and (there was) little hope of generating income from (Jackson’s) already heavily indebted assets.”

According to documents filed in March 2024, foreclosure attorney John Branca, A&R executive John McClain and their legal advisors Jonathan Steinsapir and Saul Ewing claimed the estate was on the verge of bankruptcy at the time of Jackson’s death. Michael Jackson’s net price is currently valued at over $2 billion, based on People magazine.