The king of pop was obviously also the king of debt. According to court documents filed this month and revealed by PeopleMichael Jackson had accumulated a whopping $500 million in debt by the time of his death in 2009.
It seems that despite his global success, the star’s substantial income did not match his lifestyle.
The Los Angeles Times believes that the singer of Heal The World had to cover $30 million a year. And thanks to the report of the chartered accountant William R. Ackerman, we know a little more about the expenses of the father of Paris, Prince and Bigi. There are certainly the bursts of generosity, in donations to charities and gifts, but also the trips, the acquisition of art or furniture.
“A lot of money in jewelry”
But that’s not all. “He spent a lot of money on jewelry,” Mr. Ackerman added, which isn’t really surprising given the amount of artillery that considerably weighed down the star’s spectacular outfits.
And with the interest on these debts and the loans taken out, “he was out of breath,” said the accountant, who must not have been unemployed during all these years. The interpreter of Thriller had in fact “more than half a dozen lawsuits pending around the world” and more than “65 creditor claims”.
Poisoned gift
It was therefore to Paris, Prince and Bigi alias Blanket, beneficiaries of the estate, that the heavy burden of settling the paternal debts fell.
“The executors were able to renegotiate and restructure the financing arrangements that existed at the time of Michael’s death, at significantly reduced interest rates, which allowed the estate to avoid the loss of assets to the lenders and , ultimately, to satisfy the charges that existed at the time of Michael’s death,” the filing reads.
Obviously, the situation has improved significantly, but “although the executors have eliminated the estate’s debts, resolved almost all of the creditors’ claims and disputes, and managed to consolidate the estate, he MJJ business as a significant entity in the music industry, there remain difficult business, tax and legal issues that the executors and their attorneys continue to address. »
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The executors are now seeking reimbursement for “legal, negotiation and various other operating costs” over the past six years.
Earlier this month, Michael Jackson’s estate agreed to sell its share of the singer’s music catalog to Sony Corp for $750 million (€701 million). This should considerably ease their sentence.
