Fifteen years after Michael Jackson died at the age of 50, it was revealed the King of Pop was over $500 million in debt at the time of his unexpected death.
The Los Angeles Times reports that while testifying, William R. Ackerman, a defense witness on behalf of AEG Live in the wrongful death trial in 2013, revealed that Jackson had spent money on donations to charity, gifts, travel, art, and furniture.
With a noticeable chuckle, Ackerman told the jurors, “He spent a lot of money on jewelry.”
Describing Michael Jackon’s Neverland Ranch as a “mini-theme park” Ackerman said had its own maintenance staff, zoo, and train that traveled around the famous property. The accountant stated the property was a huge drain on the pop star’s income.
However, Ackerman said when it came to Michael Jackson’s largest expenditure, it was the interest expense. “He spent a ton of money on interest,” Ackerman observed.
Ackerman then pointed out that the biggest expense for Michael Jackson was $30 million in annual payments on his debt. The interest grew from less than 7% to 16.8% annually. He noted that as early as 1993, the King of Pop owed $30 million, which grew to $140 million by 1998.
When he died, Michael Jackson owed between $400 million and $500 million. The accountant further observed that Michael Jackson did not have any loans after 200.
However, he was three to four months behind on payments for the San Fernando Valley home where his mother lived in at the time of his death. “He was tapped out,” Ackerman noted.
Michael Jackson died on June 25, 2009, after suffering from cardiac arrest. The medical emergency was caused by a propofol and benzodiazepine overdose. His personal physician had given him the drugs to help him sleep.
Michael Jackson’s Estate Was on the Verge of Bankruptcy When He Died in 2009
In a March 2024 filing, estate executors attorney John Branca and A&R executive John McClain, along with their legal counsel, Jonathan Steinsapir and Saul Ewing, claimed that Michael Jackson’s estate was on the verge of bankruptcy when he died.
Despite the previous struggles, the estate is now valued at $2 billion.
“Exercising the powers granted in Michael’s will as confirmed by the probate court, they entered into business transactions involving the estate’s assets that skyrocketed the estate’s value to over $2 billion,” the appellate brief revealed, per PEOPLE.
Michael Jackson’s mother Katerine Jackson has been fighting with the estate attorney since late last year. She filed a lawsuit after the estate refused to pay her legal bills.
Her grandson, Bigi (formerly known as Blanket), had been the one to make the call about the estate’s decision. The attorneys further claim Katherine has already been paid millions by her son’s estate.
Bigi previously argued that the estate shouldn’t be paying Katherine’s bill. He said it would be “unfair” to force him and his siblings to pay.