Michael Jackson passed away leaving behind a significant debt of over $500 million, as per a recent court filing from his estate. Jackson’s financial troubles were no secret, stemming from extravagant spending habits that led to outstanding bank loans, missed property payments, and near bankruptcy.
These financial burdens were worsened by the expenses incurred while preparing for his This Is It tour residency in London, set to kick off in July 2009. The tour was anticipated as a comeback for the King of Pop, marking his return to the stage after more than a decade. Unfortunately, Jackson tragically passed away on June 25, just weeks before the scheduled shows.
Despite his death, Jackson’s estate remained liable for debts, including a hefty $40 million owed to the tour promoter A.E.G. and multiple claims from creditors. These claims resulted in lawsuits with high interest rates, as revealed in court documents obtained by PEOPLE and Entertainment Weekly.
In a subsequent filing, Jackson’s estate executors acknowledged the overwhelming debt left behind by the star’s passing, yet they managed to negotiate and settle most of the claims without losing assets. Nonetheless, challenges persist, including an ongoing dispute with the IRS over taxes and penalties estimated at $700 million.
The filing also details a request for over $3.5 million in reimbursements to legal firms that assisted the estate in 2018. Despite the financial struggles, the estate made a significant sale in that year, offloading its stake in EMI Music Publishing to Sony for $300 million.
