Michael Jackson passed away with a staggering amount of debt exceeding $500 million, as revealed in a recent court filing from the King of Pop’s estate.
Prior to this filing, Jackson’s financial struggles were already well-known, stemming from excessive spending that resulted in substantial liabilities, including outstanding bank loans, missed property payments, and impending bankruptcy.
This financial burden was further exacerbated by expenses incurred for his anticipated This Is It tour residency in London, set to kick off in July 2009. The tour was considered a comeback for Jackson, marking his first major performance since the 1997 HIStory World Tour. Despite extensive rehearsals leading up to the 50-show engagement, Jackson tragically passed away on June 25, just weeks before the tour was to commence.
Following his demise, the estate remained accountable for approximately $40 million owed to tour promoter A.E.G. and other outstanding debts to 65 creditors who had claims against Jackson posthumously. Some of these claims resulted in legal disputes and accrued significant interest rates, as stated in documents filed with the Los Angeles Superior Court and reported by PEOPLE and Entertainment Weekly.
A subsequent filing in March by Jackson’s estate executors, attorney John Branca and music executive John McClain, highlighted the overwhelming debt burden faced by the estate at the time of Jackson’s passing. However, the recent filing indicates that the estate has successfully restructured and resolved the debts over the years, settling most creditor claims and lawsuits without incurring asset losses.
Despite these achievements, the estate continues to face financial and legal challenges, including an ongoing dispute with the IRS. In 2021, the agency alleged that Jackson’s estate owed $700 million in taxes and penalties, but the estate contested the claims and emerged victorious. Nevertheless, a motion for reconsideration is pending due to the valuation of Jackson’s music catalog.
The filing also itemizes background information and requests over $3.5 million in reimbursements to legal firms that provided services to the estate and its executors in 2018. During that year, the estate sold its ownership in EMI Music Publishing to Sony for $300 million.
