New court documents reveal that Michael Jackson was half-a-billion dollars in debt at the time of his death, prompting moves to seek back pay.
According to filings obtained by HuffPost, despite the King of Pop’s estate now being valued at $2 billion, Jackson faced substantial debts – to the tune of $500 million – before his sudden death in 2009. These financial challenges were worsened by lavish spending and high-interest loans.
According to certified public accountant William R. Ackerman, testifying in a wrongful-death trial, Jackson’s expenses included charitable donations, gifts, travel, and jewelry, leaving him financially strained. His estate, burdened with liabilities from canceled tours and legal disputes, has since restructured debts and capitalized on music catalog assets, securing deals with Sony Music and navigating complex legal battles.
In a filing dated March 2024, estate executors attorney John Branca and A&R executive John McClain, along with their legal counsel Jonathan Steinsapir and Saul Ewing, maintained that the estate was burdened with debt and teetering on the brink of bankruptcy at the time of Jackson’s death.
The petition highlights that Jackson faced “more than half a dozen lawsuits pending worldwide.” In addition, “65 creditors’ claims were filed in the Estate spawning additional lawsuits, of which several resulted in litigation.”
“Although the Executors have eliminated the Estate’s debt, have resolved virtually all of the creditors’ claims and litigation, and have successfully solidified the MJJ business as a significant entity in the music industry, there remain challenging business, tax and legal issues that the Executors and their counsel continue to deal with,” the petition continues.
Now, in court documents filed on Friday (June 21), Branca and McClain are petitioning the court to approve estate funds for reimbursing the executors’ attorneys for legal, negotiating, and operational expenses incurred in 2018. They contend they faced exceptionally difficult circumstances managing Jackson’s assets but acted promptly to resolve much of his debt since his death.