At the time of his death, Michael Jackson, who was preparing to make a triumphant return to the stage, was close to financial ruin, with more than 500 million in debt.
When he died on June 25, 2009 at the age of 50 in Los Angeles, Michael Jackson had accumulated debts of more than $500 million, according to court documents recently filed in Los Angeles Superior Court, People reported.
Earlier this week, representatives for the late pop star’s estate, attorney John Branca and music manager John McClain, filed a motion in Los Angeles Superior Court seeking to pay more than $3 million to several law firms for services provided to the estate between July and December 2018. The motion details Jackson’s assets before and after his death.
“The executors faced extraordinarily difficult circumstances. Among other things, at the time of Michael Jackson’s death, Michael Jackson’s largest assets were subject to over $500 million in debts and creditor claims, with some of these debts accruing interest at extremely high interest rates. high and other debts in default,” the filing said.
Since the singer’s death, the executors of his estate have managed to significantly turn around his financial situation, claiming to have “resolved virtually all creditors’ claims and disputes and have succeeded in solidifying MJJ’s business as a significant entity in the industry musical,” with an estate now valued at more than $2 billion.
The “Thriller” singer had “over a half-dozen lawsuits pending worldwide” and more than “65 creditor claims filed against the estate, resulting in additional lawsuits, several of which have resulted in litigation,” the petition reads. After his death, the executors’ attorneys handled 15 lawsuits in the United States and participated in others in Europe and Japan, most of which they said were resolved or settled favorably.
Trial pending for alleged sexual assault of two children
“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, allowing the estate to avoid the loss of any assets to the lenders and ultimately satisfy the liabilities that existed at the time of Michael’s death,” the documents state.
In 2012, the executors also acquired a stake in EMI Music Publishing (which owns the copyright to songs by Carole King, Norah Jones and Motown classics), which it sold to Sony for $300 million in 2018, realizing a return on investment of more than 5,000%.
“While the Executors have eliminated the Estate’s debts, resolved substantially all creditor claims and litigation, and successfully consolidated the MJJ business as a significant entity in the music industry, there remain difficult business, tax, and legal issues that the Executors and their counsel continue to address,” the filing states. The motion also notes a pending final decision on a dispute with the Internal Revenue Service.
Separately, a legal battle is currently raging between the estate and Michael Jackson’s accusers, Wade Robson and James Safechuck, who have been granted a trial in August 2023. The two alleged victims, featured in the documentary “Leaving Neverland,” claimed that “the King of Pop” sexually assaulted them when they were children.
