By: Phoebe Huang

When Michael Jackson died in 2009, his total debts amounted to about 500 million dollars, according to a court filing in March 2024 by the pop star’s estate that provides details of his finances.

Jackson owed about $40 million to the tour promoter A.E.G., according to a Los Angeles County Superior Court filing. And A.E.G was just one of 65 creditors who made claims against Jackson after his death, leading to some lawsuits. Many of these debts had also been accumulating interest at very high rates.

In the court filing, the executors state that they have cleared the estate’s debt and resolved nearly all the issues. They have payed back most of the money to the original banks and companies who gave Jackson money.

So where did all this debt come from? Jackson was known for his extravagant lifestyle and reckless spending. He accumulated millions in debt from his estate in Southern California and his liking for expensive art, jewelry, and private jets. Of these extravagances, the most known is his Neverland Ranch, which some sources say could cost up to $30 million and included a zoo, carnival rides, and a big mansion. A forensic accountant testified that Jackson was paying over $30 million annually in interest.

The Jackson estate had also conflicted with the IRS after a recent tax audit. In another court filing this year, the estate reported that the federal agency accused them of pricing their debt too low and demanded an extra $700 million in taxes and penalties.

Jackson made most of his money throughout the 1980s and 1990s through some of his sold-out concerts at some of the biggest stadiums in the world and albums everybody crazed over at the time. He also bought the Beatles’ song catalog for $47.5 million in 1985 and later sold it to Sony for a 50 percent share in their company.

However the case ends up, it seems clear that Michael Jackson has left behind not only a legacy in pop music but also financial chaos.