Upon his death from a drug overdose in 2009, many might assume Michael Jackson was financially prosperous. However, the true picture was quite different. The King of Pop was, in reality, facing significant financial difficulties, burdened by a debt of at least $450 million. Despite this, his prospects were improving before his untimely passing, as he was preparing for a major global concert series titled ‘This Is It’. Tragically, Jackson died just a month before the inaugural show in London.
Michael Jackson’s income surged significantly in the late 1980s, escalating from $37 million annually to $125 million. This financial boost stemmed from the immense success of his 1987 album ‘Bad’, its accompanying tour, his 1988 autobiography ‘Moonwalk’, and his acquisition of the ATV Music catalogue, which included The Beatles’ songs. These substantial earnings continued through the late 1990s, built on a career total of 400 million records sold by the pop superstar.
Nevertheless, this enormous influx of cash was counteracted by an equally substantial outflow. According to Forbes, he spent approximately $50 million each year on luxuries such as jewelry, art, amenities, exotic animals, and travel. He also made generous contributions to various charitable organizations and medical facilities, particularly those treating burns, a cause close to him after he suffered a severe burn accident in 1984 during a Pepsi commercial shoot.
His $450 million debt at the time of his demise included $40 million advanced by AEG Live, the promoter for the ‘This Is It’ tour, alongside a $270 million loan. Creditors filed an astonishing 65 claims against Jackson both in the US and internationally. Compounding these issues, his estate also faced the burden of accumulating legal fees required to resolve these numerous claims.
Micheal Jackson was in 0 million debt at the time of his death.
How did Michael Jackson estate bounce back?
Michael Jackson’s estate adeptly capitalized on his unparalleled legacy, ultimately transforming him into one of the highest-earning deceased celebrities. Since the highly anticipated ‘This Is It’ tour never materialized, the estate compiled rehearsal footage for Jackson’s intended new tour and released the 2009 documentary, ‘Michael Jackson’s This Is It’.
The outpouring of posthumous affection and fan devotion for Jackson propelled the documentary to over $265 million at the global box office, further supplemented by more than $100 million from DVD, soundtrack, and merchandise sales. The estate garnered $200 million from the documentary, thereby settling a substantial portion of the outstanding debt.
Subsequently, Jackson’s ATV catalogue, comprising over 4,000 songs, was sold to Sony Music for $750 million. In 2024, Sony also acquired half of Jackson’s individual music rights for $600 million. Jackson’s enduring legacy was further monetized through releases of new albums featuring unreleased music, touring shows, stage productions including Cirque du Soleil, and, most recently, a Hollywood biopic.
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While Jackson leased numerous properties globally, including a lavish apartment in Trump Towers, his cherished Neverland Ranch, located on the outskirts of Los Angeles, California, was sold to his friend and billionaire Ron Burkle in 2020 for $22 million. All these generated revenues were channeled into repaying debts, covering legal expenses, and settling taxes. Following these comprehensive settlements, the current net worth of the Michael Jackson estate stands at an impressive $3.5 billion, marking this as the most lucrative period of Jackson’s career, over 15 years after his passing.
A still from Michael Jackson’s This Is It.
Michael: Make or break?
Drawing inspiration from the transformative impact of ‘Michael Jackson’s This Is It’, the estate subsequently invested in ‘Michael’, a Hollywood biopic starring Michael’s nephew, Jafar Jackson, as the King of Pop. The estate meticulously planned its strategy, renegotiating terms with Sony regarding Jackson’s music catalogue to benefit from an anticipated surge in his music’s popularity after ‘Michael’s’ release. This foresight proved accurate, as seven of Michael Jackson’s tracks, from “Billy Jean” to even “They Don’t Care About Us” (which is not featured in the film), began dominating music charts just three days post-biopic’s global debut.
They also enlisted Billy Graham, known for his previous support of another musician’s biopic, Bryan Singer’s ‘Bohemian Rhapsody’ (2018), which earned Rami Malek an Oscar for his portrayal of Queen’s lead singer, Freddie Mercury. That film garnered over $940 million worldwide, also sparking a significant increase in Queen’s music chart presence. Mercury’s estate and the surviving Queen members, who shared in the film’s profits, saw their revenue climb from $24 million in 2017 to $94 million in 2019, followed by over $85 million in dividends over the subsequent four years. This renewed popularity further enabled Queen to sell their catalogue to Sony Music for more than $1.2 billion in 2024.
Jafar Jackson as Michael Jackson in Michael.
Currently, ‘Michael’ has achieved a worldwide opening of $217 million, including $97 million from North America and Canada alone. This performance surpasses the domestic opening weekend of ‘Bohemian Rhapsody’ by $45 million ($52 million). However, unlike ‘Bohemian Rhapsody’ which was produced on a budget of $55 million, ‘Michael’s’ reported production budget is a significantly higher $200 million.
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Originally, the biopic was already slated as one of Hollywood’s most expensive, with a $150 million budget. Yet, this escalated to $200 million due to a critical oversight by the Michael Jackson estate. The film’s initial third act explored the child sexual abuse allegations the popstar faced in the early 1990s, but the estate belatedly realized that a settlement with the accuser legally prohibited any depiction of these events in film and television projects.
Consequently, the estate was compelled to contribute between $25 million and $50 million to completely reshoot the third act of ‘Michael’. The estate has already received $10 million upfront for co-producing and licensing the music. Furthermore, they hold an estimated 25% stake in the profit sharing. Given the film’s current box office trajectory, they could potentially earn an additional $40 million from global sales.
This Isn’t It: Sequel in the making
While the Michael Jackson estate might merely break even on ‘Michael’, considering their maximum $50 million investment for reshoots, their earnings are projected to multiply significantly in the coming years. The success of ‘Michael’ has effectively introduced the King of Pop to a new generation, promising to drive future sales through royalties, stage performances, merchandise, and the development of a potential franchise.
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Although not officially confirmed, a sequel to ‘Michael’ is reportedly in development. As the current film concludes in 1998, the subsequent installment will cover the remainder of his life. Consistent with the settlement clause with the accuser, the sequel will continue to omit any mention of child sexual abuse allegations against him. This preserved clean image of Michael Jackson is expected to further enhance and extend his legacy. So much so that Lionsgate chairman Adam Fogelson has indicated to The Associated Press that a third film in the ‘Michael’ franchise is “not inconceivable”.
DISCLAIMER: This article provides an editorial overview of Michael Jackson’s financial legacy and the commercial performance of related film projects. It is intended for informational and entertainment purposes only and does not constitute financial advice, investment recommendations, or a definitive legal account of estate settlements.