How Michael Jackson's estate went from debt to billions

News.com.au

2 days ago

When Michael Jackson died in 2009, he was over $US500 million in debt – now he is roughly $A768 million richer today.
The King of Pop died of cardiac arrest caused by acute Propofol intoxication 16 years ago at the age of 50.
At the time of his death, the singer owed money to more than 65 creditors, People reports.
According to The US Sun, the Grammy-winner struggled financially and became technically homeless – staying with friends' while his home, Neverland, went into foreclosure.
Since his passing, the 'Thriller' hitmaker's net worth has generated a staggering $US2 billion ($A3.07 billion).
Here's a closer look at how Jackson's empire financially turned around and what became of his properties.
How did Michael Jackson blow his money?
According to Celebrity Net Worth, the 'Moonwalker' star had earned between $US50 million and $US100 million ($A76 million and $A152 million) a year from 1985 until 1995 through touring, record sales, endorsements and merchandise.
But, the singer spent the money just as fast as he earned it. His lavish lifestyle reportedly cost about $US50 million ($A76 million) a year.
The Grammy-winner's then home, Neverland, cost $US19.5 million ($A29 million) to buy and hefty $US10 million ($A15 million) a year to maintain.
Jackson splashed $US35 million ($A53 million) remodelling the compound into his own amusement park.
He blew his fortune on gifts, travel, antiques, art, zoo animals, jewellery and furniture – as well as making huge donations to numerous charities.
The 'Billie Jean' hit maker forked out between $US50 and $US100 million ($A76 million and $A152 million) on movie and music projects that never got off the ground.
He used 50 per cent of his ownership stake in music/publishing company Sony/ATV as collateral, as well as taking out a $US270 million ($A411 million) loan.
However, the pop sensation managed to spend the entire $US270 million ($A411 million), plus an extra $US120 million ($A183 million) within a few short years.
Before his death, Jackson had been in the middle of preparing for his 'This Is It' tour, which added some strain on his finances.
The musician died close to the tour's inception, which left his estate financially liable for $US40 million ($A61 million) to the tour promoter, AEG.
How did Michael Jackson's empire go from debt to billions?
Following Jackson's death, his executers began working to stabilise the pop star's financial situation.
His lawyers went through personal home videos from the last year of the singer's life to produce a movie called 'This Is It'. To date, the film has made over $US500 million ($A762 million).
After the success of 'This Is It', Pepsi struck a deal to license Jackson's image.
Cirque du Soleil produced two Las Vegas shows around his music and image, where Jackson's estate is 50/50 partners with the entertainment company on both shows.
In 2023, Jackson's estate pulled in around $US115 million ($A175 million), largely thanks to the success of the Broadway show 'MJ: The Musical'.
Based on the music icon's life, the show raked in roughly $US85 million ($A129 million) just from ticket sales.
Last year, Sony Music Group reportedly purchased half of Jackson's music catalogue in a deal that valued his songs somewhere above $US1.2 billion ($A1.8 billion), according to Billboard.
The deal would also be the biggest ever for the work of a single musician, the BBC reported.
Sony's deal with Jackson's estate does not include royalties from the Broadway play and other theatrical productions featuring his music.
The news came just as an upcoming biopic about Jackson's life and career starring his nephew, Jaafar Jackson, is set to hit the big screen this year.
'The Wiz' actor's estate still earns a 50 per cent stake in the music licensing company Sony/ATV, which owns the rights to the Beatles catalogue. His share earns an eight-figure sum.
To date, the singer has sold over 750 million albums, including 35 million that were sold in the year following his death.
According to Parade, Jackson has been the highest-earning dead celebrity on the planet.
What happened to Michael Jackson's properties?
Neverland
Jackson purchased the property, originally named Zaca Laderas Ranch, and later known as Sycamore Valley, in 1988.
He had discovered the property after Beatle Paul McCartney had stayed there while they were making the music video for smash hit 'Say, Say, Say'.
The 'Who Is It' singer renamed the estate Neverland after the character of Peter Pan, the boy who never grew up.
The musician spent millions transforming the estate into a Disney-style amusement park.
He was said to have installed a railroad, merry-go-round, arcade and ferris wheel.
The property also had a zoo filled with tigers, crocodiles, elephants, giraffes, orangutans and a bear.
Neverland included a 1200 sqm residence, 50-seat movie theatre building, guest quarters, barn and a pool house.
The six-bedroom, nine-bathroom home spans a massive 1170 sqm and features an expansive master suit with private loft and two master bedrooms, as well as three separate guest homes.
Other luxurious features include two fireplaces, a butler's pantry, spa bath, sauna, and breathtaking mountain views.
It is also a short 8km drive to the nearest town, and two hours from LA.
Jackson lived at the property until 2005. After he was acquitted of child sex charges, he moved out of Neverland and relocated to Bahrain.
He transferred the property to Sycamore Valley Ranch Company LLC in 2008 to cover debts he had run up.
In 2015, the property was renamed Sycamore Valley Ranch and put on the market for $US100 million ($A128 million).
After five years and numerous price cuts, the sprawling property finally found a buyer.
Billionaire and friend of the late pop star Ron Burkle purchased the 2700-acre (1092Ha) estate for $US22 million ($A28 million).
It was considered a 'bargain' far below its initial asking price of $US100 million ($A128 million).
Trump Tower
Jackson once had a luxurious apartment in Trump Tower.
The four-bedroom, four-and-a-half bathroom condo, sat a few floors below Donald Trump's penthouse in the complex.
It boasts floor-to-ceiling windows, granite and marble floors, and a wood-panelled library — plus use of the building's doorman, concierge, valet and maid service.
Listing broker Dolly Lenz said neighbours claim Trump rented it to Jackson for a while, charging $US110,000 ($A167,000) per month in 1994, after Jackson had secretly married Lisa Marie Presley, Page Six reports.
The Donald and the King of Pop were buddies.
'I know him well. He lived in my building,' Trump previously told CNN. 'We never had one problem. He's a good guy.'
After Jackson's death, The US President wrote in TIME: 'He was an amazing guy, but beyond all else, he was the greatest entertainer I've ever known.'
Fans regularly camped out downstairs for a glimpse of MJ and Presley.
'Some residents say Jackson rented it because he would be able to go in the elevator directly to the garage and leave stealthily out of the building,' Lenz says. 'That was a big allure.'
Las Vegas
South Monte Cristo Way
Jackson lived in Las Vegas for about a year starting in 2006.
According to The Wall Street Journal, the King of Pop paid $US50,000 ($A76,000) a month in rent for the spacious pad.
The 17,000-square-foot mansion sits on a one-acre corner lot in the exclusive Lakes neighbourhood, just a 15-minute drive from the famous Strip.
The home is two stories with eight bedrooms – including a man-in-the-mirror-approved 2,500-square-foot master suite – and 7.5 bathrooms.
The focal point of the grand entryway is an indoor fountain and a curved staircase.
There's also a spiral staircase. Outside, there's a pool, spa, summer kitchen and tennis court.
The home hit the market this year for $US11 million ($A16 million), according to 1027vgs.com.
'Thriller Villa'
Jackson reportedly lived at the Las Vegas property with his three kids.
He never owned the home, but rented there from 2007 to 2009, selling agent Kristen Silberman of Sotheby's International Realty told Mansions Global.
Owner Aner Iglesias, a supermarket mogul, nicknamed the property 'Thriller Villa' after his famous tenant.
The almost 2,400 sqm home was built in 1952 under the guidance of Iglesias, who was inspired by Spanish architecture.
The lounge, reportedly Jackson's favourite room in the house, has a rustic yet regal feel with exposed wood beams, a large stone fireplace and a Murano glass chandelier.
The biggest showstopper in the 10-bedroom home is the 74-seat Medieval-style chapel, complete with handpainted sky scene ceiling and a Crown of Thorns chandelier.
When Jackson lived at the property he used the chapel as more of a theatre.
An elevator connects the top level of the house, which holds the large master suite complete with a bar.
Jackson is said to have used the original mirrors in the bedroom to practice his choreography.
The home also has a second bar, two kitchens and a huge barbecue area with multiple tables and chairs to cater large gatherings.
The luxe residence was last listed for sale in 2016 with a $US9.5 million ($A14.4 million) price tag.
Beverly Hills
Jackson's last home in Holmby Hills, Los Angeles, was leased to him by AEG, after he signed a deal for a comeback tour.
Situated in a secluded Los Angeles neighbourhood, the home boasts seven bedrooms, 13 bathrooms, and 12 fireplaces.
The residence features a wine cellar, theatre, tasting room, spa with a gym, elevator guesthouse, along with a pool and gardens.
The mansion where the King of Pop died finally sold for $US18.1 million ($A27.6 million) in 2012, according to the Wall Street Journal.