Michael Jackson had a huge debt when he died. However, soon he became one of the highest-earning dead celebrities ever with a whopping net worth.
Michael Joseph Jackson was an icon to many. Dubbed as the King of Pop, Michael’s presence itself made people’s hearts skip a beat. He was not just an icon but a revolution himself. Over a four-decade career, Michael’s musical achievements broke American racial barriers. He soon turned into a dominant figure worldwide.
Michael was one of the richest entertainers and has been earning a lot of money since his childhood. But at the time of his death in 2009, he was under a huge debt due to financial losses. He used to earn USD 50 million to USD 100 million per year from his albums, world tours, and endorsements. What went wrong with Michael’s finances that he incurred such a huge debt? Let us read to find out.
Michael was the eighth child of the Jackson family and made his debut as a lead singer of the Jackson 5 at the mere age of six. From a tender age, Michael started performing on stage and by 1969-1970, his band released hits like I Want You Back. He saw success, including financial success, from an early age. While the kids of his age played outside, Michael used to have back-to-back training and recording sessions.
Though his life was marked by extreme fame, Michael was overshadowed by severe childhood trauma and loneliness. Despite his insecurities, Michael made his mark ever since he appeared on stage. By the age of 10, Michael was earning approximately USD 100,000 annually as the lead singer of The Jackson 5.
In 1978-1979, Michael embarked on a solo career from bubblegum pop to more complex tracks. With tracks like Off the Wall, She’s Out of My Life and Rock with You, Michael marked his transition. Michael was 20 at that time and was already earning approximately USD 5 million. Michael’s sixth album, Thriller, released in 1982, broke all the records.
With an estimated 70 million copies sold, MJ’s Thriller became the best-selling album of all time globally. It became the first album to generate seven top-ten singles, including Billie Jean and Beat It. Within two years of the release of Thriller, Michael Jackson earned over USD 134 million. The success of Thriller made him the top-selling artist in the industry.
Be it his albums, live shows, commercials or autobiography, Michael Jackson was swimming in wealth. In 2009, three weeks before his biggest global tour, This Is It, Michael passed away. He died at the age of 50 due to cardiac arrest, caused by a propofol and benzodiazepine overdose. At the time of his death, Michael was in more than USD 450 million in debt.
The main reason for Michael’s debt was his lifestyle. The tremendous cash inflow was offset by an equally draining cash outflow. Michael never compromised on his spending and would often spend USD 50 million on luxuries like jewellery, art, amenities, animals, and travel. He relied on loans for his expenses, reportedly took a $380 million loan, and over time, the interest on the loan rose, adding to his debt burden.
Michael Jackson’s death changed everything. Under the management of his estate, Michael’s finances were restructured. Michael’s much-anticipated This Is It tour could never happen, so the estate put together the rehearsal footage for Michael’s new tour and released his This Is It as a documentary in 2009. The documentary earned over USD 265 million at the global box office. The income was added with over USD 100 million plus surplus from DVD, soundtrack, and merchandise sales.
Michael’s biggest financial move came when he acquired the ATV Music Publishing catalogue in the 1980s. He later merged it with Sony to form Sony/ATV, giving him a 50% stake in a global music publishing giant. The catalogue with over 4,000 songs was sold to Sony Music for $750 million. Atop it, Sony also acquired Jackson’s own music rights for $600 million in 2024. Apart from this, Jackson’s beloved Neverland ranch was sold to his friend and billionaire Ron Burkle in 2020 for USD 22 million.
All the money was used to pay off Michael Jackson’s debt, legal expenses, and taxes. He eventually became one of the highest-earning dead celebrities ever. Michael’s current net worth stands at a whopping USD 3.5 billion.
What do you think about Michael Jackson’s whopping wealth?
Also Read: Why Did Lisa Marie Presley File Divorce From Michael Jackson? Truth About The High-Profile Marriage