King Of Pop Lived In Luxury, Died In Debt

He Moonwalked His Way Into History But Michael Jackson's Financial Moves Were Not As Smooth

(CBS)  He moonwalked his way into history - but Michael Jackson's financial moves were not nearly as smooth, reports CBS News correspondent Ben Tracy.

The "King of Pop" sold an astounding 750 million albums. "Thriller" alone sold more than 100 million copies, the most successful studio album of all time.

But Michael Jackson's penchant for the opulent and the oddball led him to the brink of financial ruin. He also had to fund a team of lawyers to fend off continual lawsuits. By the time of his 2005 molestation trial, court records showed Jackson was $300 million in debt and spending $30 million more per year than he was taking in.

"He lost interest in how much was being made, how much he had and how much was lost along the way," said Jackson biographer Randy Taraborelli.

During one shopping spree captured in a 2003 documentary Jackson spent nearly $6 million.

He funded his elaborate lifestyle by borrowing against his three main assets: his Neverland valley ranch worth as much as $90 million; his own music catalog, as well as a second catalog he co-owned with Sony. It includes more than 250 Beatles songs. Jackson outbid Paul McCartney for the rights in the mid 80's.

In March Jackson announced his comeback, returning to the stage for 50 shows in London.

"This will be it," Jackson declared. "And when I say this will be it, it really will be it."

Seven hundred fifty thousand tickets sold out in just four hours - $85 million that now needs to be refunded. Jackson was expected to earn $20-30 million from the shows plus a potential $400 million for an expected worldwide tour.

He needed the money. Neverland and many of his possessions were almost sold at auction and the house paramedics showed up at yesterday was one Jackson was renting for a reported $100,000 per month.

In Hollywood, Michael Jackson's fans are gathering at a makeshift shrine. As for his will, the big question will be the fate of that music catalog containing the lucrative Beatles songs. It alone is worth an estimated $500 million.



More Michael Jackson coverage:

Quincy Jones: "I Miss My Little Brother"
Motown's Gordy On Discovering Jackson
Gary, Indiana Mourns Hometown Star
The Man With The Moves
King Of Pop Lived In Luxury, Died In Debt
Coroner: Cause Of Jackson Death Deffered
911 Caller: Jackson "Not Breathing"
KHOU: Texas MD With Jackson Amid Collapse
A Collection Of CBS Videos Of Michael Jackson
The Death Of Michael Jackson, Full Coverage

[kajexa]

I am soooooo sick of all you talking about how this man spent his money. HE EARNED IT!!!! If he could recoup all that he's GIVEN away in his lifetime, his debts would be more than paid! Give it a rest. Most importantly, let him rest!!!

Jackson Family Fan Forever!!!!!

[hennighg]

Sorry. I'm sad about his death, and sad about his life, and his celebrity is like Princess Di's, but PLEASE remember that this guy was a pedophile, too. Realistic reflection should include that.

amazing how it seems that becoming a super rich entertainer in the US seems to be a death sentence. Especially to the "SuperStars" that are treated like some sort of saints no matter what they do. I fondly remember enjoying MJ as a kid, during the the Jackson 5 days, Jackson and myself were born the same year. I lost interest in him by the 70s as I moved on to a bit harder Led ZeP sort of musical interest even though i do still like old motown stuff from the early 60s. Shame he had to die under the circumstances he did but when youve got that much money or at least a good line of credit its not hard to surround yourself with people that will say yes to anything you want. oh well Bout as simple as a b c.

[formrusmcsgt]

...court records showed Jackson was $300 million in debt and spending $30 million more per year than he was taking in.
----
The man was looney tunes.

[heaven4sure]

It was shocking and very sad to hear of Michael Jackson?s death. Our thoughts and prayers are with his children and his family. Michael gave a very stirring speech several years ago at Oxford. His speech was interrupted three times while he wept over the sadness of an empty life that so many people live. You can read a tribute to Michael Jackson as well as excerpts of his Oxford speech.

Copy and paste this link below into your browser to read more about Michael Jackson.

http://www.heaven4sure.com/MeandGodQuestions/LifeLessons/tabid/58/ctl/ArticleView/mid/387/articleId/26/Remembering-Michael-Jackson-19582009.aspx

[tmittelstaed]

Actually, technically Jackson didn't die "in debt" he died with the majority of his wealth tied up in non-liquid assets. Balancing his debts against his assets your probably going to come up positive.

[jetranger7]

Ya,, but what ya got to is a bunch of Idiots trying to buy up whatever they can, thinking, their going to get rich quick, rather it be Antique dealers or Collectors or bunch of wanna be get rich E Bayers,, who think they're really going to make a buck,, wait till they find out he ain't as popular with todays bubble gum chewin youngsters, as back in 1983, it ain't happinin, and that report by Amazon,, I wouldn't put a lot of trust intoi their gimmic sales B.S tell that much,, thats another ploy to try to decieve the idiots into thinking they'd better get over to that site and buy whatever they can get their hands a hold of now, because it won't be there later,, its all gimmics and smoke and mirrors for the almighty dollar and to decieve the naive brain dead public,,, which probably 75% will believe anything their told or read anyway,,, personally, I think those that think this moran was any kind of saint - should just give up 80% of their pay checks to the Jackson estate every month to help support it,, for whatever reason,,, bet the tune changes now,,, !

[obomba1]

He was a very troubled person. He needed help many years ago and never got it.

[pvperson3]

wdh3007, well since my portfolio has increased by 35% since Obama took the steering wheel of the country, I hope he keeps driving. His decisions have added $70,000 to my savings, thank you very much.

[pvperson3]

Whooooweee, I don't know which will be a bigger circus, the guardianship of his kids or his finances, this will still be going on a year from now.

[wdh3007]

One thing is for sure MJ and BO have something in common they both know about debt the only difference is BO is driving us into it for us.

[get_down]

No matter you are black or white - one has to admit that MJ is a super gifted artist and marvelous entertainer. He gave it all once he's on the stage. The title "King of Pop" suits him perfectly. So sad and too bad that he died so young at 50 - hardly eligible for him (had he lived) to draw SS benefit - not that he actually would need it. First with "King of R&R" Elvis died young and now "King of Pop" MJ too. I told my better-half earlier "No matter what you call me, just don't call me King of (anything)".

[riob678]

Michael Jackson was no doubt talented. His style was certainly unique. Unfortunately, he was not a very good judge of character, or what was in his best interest. His brother Jermaine is the only close relative who seems to have had a genuine concern for Michael's physical and financial well-being. The rest of the clan, advisors, and hangers-on all appeared to be living the good life on MJ's money.

[cattiej]

I remember seeing the TV program where Jackson was in Vegas and spent the $6 million at the gift shop..he bought almost everything there. The guy was surrounded by "enablers". No one told him NO, everyone had there hands in his pockets. Drugs probably made him crazy. I wonder if he gave any of the kids drugs. Jackson had so much plastic surgery, God will never recognize him. I think he already looked like a corpse. Time for the TV to be turned off today because that's about all that was on the tube.This guy was NOT a GOD..just think of how many people around the world he could have helped instead of building that stupid Neverland..Anyone who thinks this guy is just the greatest, doesn't have a lick of sense. Meanwhile, back to the war in Iraq, Iran and the people in our own country who have lost their jobs, their pensions, their health care, and their sanity. Now, that's the real world of today, not the false "special person".

[jwesel1]

"King Of Pop Lived In Luxury, Died In Debt" makes MJ a reflection of the US.

[Paul-Solomon]

Michael Jackson is bigger in death than he was in life. Amazon.com reports sales are through the roof, 721 times what they were yesterday before "The King of Pop" died. Like Elvis Presley, he will continue to make money for years to come. By dying, he is making the biggest comeback of his career. Ka-ching!

http://www.paulsolomon.blogspot.com

[AttentionDeficit]

Good career move

[get_down]

One thing I learned through out the years is one should try to manage one's assets by themselves. It's not difficult at all - all one has to know is knowing some simple Arithmetics and how to use a spread-sheet - heck when worst comes to worst - a pencil and some blank papers will do. Don't let a financial consultant manage your assets - trust me - your assets will only shrink instead of growing.

[toldyouso29]

I agree. Ed McMahon and James Brown were also superstars who appeared to have died in deep debt. Many stars rely on money and talent mgrs who rob them blind--most of them being lawyers. What most people do not know about lawyers is that they rarely go to jail for robbing their clients. If they "misappropriate funds" from a client to themselves, they usually get a suspended license for a few months, are ordered to attend counseling and are to pay a fraction back less expenses which they get to make up themselves.

Most money mgrs for stars are lawyers and lawyers and judges police themselves, they only end up in jail if they decide that a lawyer is not part of the old boys network any longer...check out any website about your states lawyers and look up disciplinary action--you will be surprised what they can get away with--stuff you and I would get serious jail time for.