Michael Jackson, the legendary King of Pop, was reportedly mired in over $500 million of debt at the time of his death in 2009, according to court documents filed in Los Angeles on June 21.
The documents, obtained by People, reveal that Michael Jackson owed money to more than 65 creditors and had multiple lawsuits pending worldwide. These debts and legal issues significantly impacted his estate, which had to navigate complex financial waters to mitigate further losses.
Michael Jackson’s executors successfully renegotiated and restructured financing arrangements, including a crucial deal with Sony. This $750 million agreement allowed Sony to acquire Sony/ATV, which owned the rights to nearly 3 million iconic songs by artists such as John Lennon, Paul McCartney, David Bowie, and Taylor Swift, at reduced interest rates.
However, despite these efforts, Jackson’s estate continues to face financial challenges. The executors are still dealing with ongoing business, tax, and legal issues. Michael Jackson’s three children—Prince, Paris, and Bigi—have not been able to access their trust funds due to an unresolved IRS dispute.
Documents obtained by Page Six highlighted a tax audit that revealed the estate owed $700 million in taxes and penalties due to asset undervaluation. The financial turmoil continues to overshadow Michael Jackson’s legacy, leaving his estate to untangle a web of fiscal complications.
