Michael Jackson was facing financial troubles at the time of his death due to his exorbitant spending habits, according to a new report.
Court documents obtained by People Magazine revealed that the King of Pop, who was 50 years old when he died of a cardiac arrest due to accidental drug overdose in 2009, was over $500 million in debt.
Despite Jackson’s comeback efforts, which included new songs and intensive rehearsals, his extravagant spending habits left him in desperate need of money to pay off his debt.
According to the Los Angeles Times, certified public accountant William R. Ackerman testified during the 2013 wrongful-death trial on behalf of AEG Live, detailing Jackson’s finances. Ackerman revealed that Jackson’s annual debt was accruing at $30 million, primarily due to his lavish spending on charity donations, gifts, travel, art, and furniture.
“He spent a lot of money on jewelry,” Ackerman noted during his testimony, adding that Jackson was financially “tapped out.”
The debt had built up over the course of decades.
Jackson’s financial woes dated back to 1993, with mounting debts reaching $140 million by 1998. Between June 2001 and June 2009, his debt increased by approximately $170 million.
The New York Times reported that Jackson used his stake in a song catalog, which included Beatles hits, as collateral for about $270 million in loans from Bank of America. These loans were later sold to Fortress Investment Group in 2005, a company specialising in distressed debt.
