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 troubles were well-known due to his lavish spending habits, which resulted in him owing millions in bank loans, missed property payments, and facing potential bankruptcy.
His financial struggles were further exacerbated by the expenses incurred in preparation for his This Is It tour residency in London, set to commence in July 2009. This tour was anticipated as a comeback for Jackson, marking his first major show since the 1997 HIStory World Tour. Tragically, Jackson passed away on June 25, less than three weeks before the scheduled shows.
Despite his passing, Jackson’s estate still owed approximately $40 million to the tour promoter A.E.G. and various other creditors who filed claims against him posthumously. Some of these claims led to legal disputes and accumulated high interest rates, as per documents filed in Los Angeles Superior Court and reported by PEOPLE and Entertainment Weekly.
In a separate filing from March, the executors of Jackson’s estate, attorney John Branca and music executive John McClain, acknowledged the overwhelming debt burden that the estate faced at the time of Jackson’s passing. Subsequent efforts to renegotiate and restructure these debts led to their elimination and the resolution of most creditors’ claims and lawsuits without losing any assets.
However, ongoing financial and legal challenges persist, including a pending resolution with the IRS over tax obligations. In 2021, the agency claimed Jackson’s estate owed $700 million in taxes and penalties, but the estate successfully disputed these claims. The motion for reconsideration based on the value of Jackson’s music catalog is still pending.
These circumstances were outlined in the filing, which also seeks reimbursement of over $3.5 million to legal firms that provided services to the estate and its executors in 2018. During that year, the estate sold its stake in EMI Music Publishing to Sony for $300 million.
