Net Worth Ranker
What Is Michael Jackson’s Net Worth?
At the time of his death in June 2009, Michael Jackson’s net worth was estimated to be a negative $500 million. This staggering debt was the result of years of lavish spending and significant borrowing, despite earning substantial sums throughout his career. However, after his death, his estate experienced a remarkable financial turnaround, generating over $2 billion in revenue.
Financial Details of Michael Jackson’s Career
During the peak of his career, from 1985 to 1995, Michael Jackson earned between $50 million and $100 million annually. This income was derived from various sources, including record sales, concert tours, endorsements, and merchandise. He sold over 750 million albums worldwide, with 35 million sold in the year following his death. His album “Thriller,” released in 1982, remains the best-selling album of all time, contributing significantly to his overall earnings.
Despite his substantial income, Jackson’s extravagant lifestyle led to significant financial strain. His annual expenses were estimated at $50 million. A $12 million settlement was paid to Debbie Rowe, and a further $20 million was spent settling a child molestation case. Legal fees also amounted to tens of millions of dollars.
One of Jackson’s most significant assets was his music catalog. His company, Mijac Music, owned the rights to his own songs and those of other artists, including Sly and the Family Stone, Jerry Lewis, and Ray Charles. In 1984, he acquired ATV Music Publishing, which included the Beatles catalog, for $47.5 million. This acquisition gave him control over thousands of songs, allowing him to generate revenue through licensing and royalties.
In 1995, Jackson merged ATV Music with Sony’s music catalog, creating Sony/ATV Music Publishing. Sony paid him $95 million for a 50% stake in the company. Over time, Sony/ATV grew to control millions of songs and became a major player in the music publishing industry. In 2016, Sony acquired Michael Jackson’s estate’s 50% stake in Sony/ATV for $750 million. Today, Sony/ATV controls millions of songs and is worth between $2-4 billion.
Jackson’s financial difficulties were further compounded by a $380 million loan from Bank of America, secured against his 50% ownership stake in Sony/ATV. The annual interest payments on this loan amounted to tens of millions of dollars. The funds were rapidly depleted, leading to a substantial increase in his debt.
The Lavish Spending of Michael Jackson
Michael Jackson’s lifestyle was characterized by excessive spending. Neverland Ranch, purchased for $19.5 million in 1987 (equivalent to approximately $44 million today), required $10 million annually for maintenance. An additional $35 million was spent on remodeling the property into an amusement park.
Neverland Ranch, located in Los Olivos, California, spanned 2,700 acres. It featured a 12,600-square-foot French-Normandy-style mansion with five bedrooms, eight bathrooms, a dance studio, and a 50-person movie theater. The property also included a four-acre lake, tennis courts, a basketball court, barns, and multiple guest houses, totaling 22 structures.
In addition to real estate, Jackson spent heavily on luxury items, including Bentleys, antiques, art, exotic animals, and diamond-encrusted gloves. He also invested between $50 million and $100 million in unreleased movie and music projects.
Jackson’s collection of luxury cars included several Rolls-Royce models, such as a Rolls-Royce Silver Seraph and a Rolls-Royce Corniche. He also owned a Bentley Azure and a Cadillac Fleetwood limousine. Each of these vehicles was customized to his specific preferences, adding to their overall cost.
Jackson also owned a Gulfstream III private jet, registration number N134MJ. This jet allowed him to travel comfortably and discreetly between his various properties and engagements around the world. The cost of operating and maintaining the jet further contributed to his high expenses.
His lavish spending habits ultimately led to significant financial difficulties. By the time of his death, Jackson was heavily in debt, with little hope of repaying the loan or maintaining his lifestyle. This financial pressure contributed to his decision to undertake the “This Is It” comeback tour, which was ultimately a contributing factor to his death.
Posthumous Earnings and Estate Management
Following Michael Jackson’s death, his estate was managed by executors who implemented a financial recovery strategy. Their primary objective was to restore the estate’s solvency to avoid selling his music catalog. Jackson’s will stipulated that 40% of his assets be divided equally among his three children, 20% be allocated to various children’s charities, and 40% be used to support his mother, Katherine. Upon Katherine’s death, her 40% share will pass to Jackson’s children, eventually giving them 80% ownership of the estate.
Since Jackson’s death in 2009, his estate has generated over $700 million, surpassing the earnings of any living artist during that period. The executors immediately sold Jackson’s future music rights to Sony for $250 million, which was the largest record deal in history at the time. Additionally, they produced a movie called “This Is It” from thousands of hours of personal home video, which grossed over $500 million worldwide.
Jackson’s estate also entered into endorsement deals with Pepsi and partnered with Cirque du Soleil to create two Las Vegas shows based on his music and image. These shows generate significant revenue for the estate through a 50/50 partnership.
The estate also manages tens of thousands of personal items and memorabilia, stored in three warehouses in Southern California. These items will be available to Jackson’s children once they reach the age of 18, allowing them to decide what to keep and what to auction off.
The estate’s 50% stake in Sony/ATV Music Publishing continues to generate substantial dividends. As of 2022, the estate earned $75 million, consistent with the $75 million earned in 2021. In 2020, earnings were $48 million, $60 million in 2019, $400 million in 2018, $75 million in 2017, $825 million in 2016, and $115 million in 2015.
In December 2020, billionaire Ron Burkle purchased Neverland Ranch for $22 million. This sale marked the end of an era for the property, which had been on the market since 2015.
