Court documents filed in Los Angeles on June 21 obtained by People claim that “king of pop” Michael Jackson owed more than $500 million to more than 65 creditors shortly before his death.

Michael Jackson owed more than $500 million at the time of his death- Photo 1.

Michael Jackson owes more than $500 million

Michael Jackson had “more than half a dozen pending lawsuits worldwide” and more than “65 creditor claims filed on the singer’s estate resulting in additional lawsuits,” the lawsuit states.

According to the new filings, Michael Jackson’s executors can “negotiate and restructure financial agreements,” including an agreement with Sony over Michael’s rights to certain artists’ music, at a “significantly reduced interest rate” to avoid further losses and pay off debts.

The $750 million deal allows Sony to acquire Sony/ATV, which holds the rights to nearly 3 million popular songs by artists including John Lennon, Paul McCartney, David Bowie, Taylor Swift…

Michael Jackson owed more than $500 million at the time of his death- Photo 2.
Michael Jackson has “accumulated” a lot of debt in part due to excessive spending habits

According to the petition, even after the financial issues have been resolved, Michael Jackson’s estate manager still owes a significant amount of money because of “business, tax, and legal matters that Michael’s executor and counsel still have to deal with.”

The filing also records a final decision pending in a court battle since 2021 with the tax authority (IRS).

Jackson’s three children, Prince (27), Paris (26) and Bigi Jackson (22) – the beneficiaries of the singer’s estate – have been blocked from receiving money from their trust funds until the dispute with the IRS is resolved.

Court documents obtained by Page Six earlier showed that the tax audit identified an “undervaluation of the property,” owing “$700 million in taxes and penalties.”

However, a spokesperson for Michael’s estate told Page Six: “In the annual reports provided to the probate court, which are made public, anyone can see that the estate gives Michael’s mother and children a huge amount of money to support them in life.

The estate has a close relationship with Michael’s children and whenever they need anything, the estate manager works with them to make sure that they are well cared for, just as Michael intended.”

In February 2024, Sony Music invested more money in Michael’s management company by buying the music superstar’s music catalog that includes hits such as Beat It and Billie Jean – for at least $600 million.

Michael Jackson nợ hơn 500 triệu USD vào thời điểm qua đời- Ảnh 3.
Prince, Paris and Bigi Jackson (from left) have been blocked from receiving money from the trust

The Los Angeles Times previously reported that Michael Jackson had “accumulated” a lot of debt partly due to his overspending habits.

Accountant William R. Ackerman testified at the Smooth Crime singer’s wrongful death trial in 2013 that the singer spent a lot of money on charitable donations, gifts, travel, art and furniture.

Michael’s spending habits were shown in a 2003 interview with Martin Bashir. At that time, he was shopping comfortably at an antique store in Las Vegas.

In March 2005, just three months before his death, prosecutors in Michael Jackson’s sexual abuse trial called him a “shopaholic” on the brink of bankruptcy.