Michael Jackson Net Worth? How Rich He Really Was?

Michael Jackson was one of the most successful and influential entertainers of all time. At his peak, he earned tens of millions per year through album sales, tours, endorsements and more. However, Jackson also spent money freely, funding an incredibly extravagant lifestyle. By the time of his unexpected death in 2009, Jackson was actually $500 million in debt according to Celebrity Net Worth. In this article we talk about Michael Jackson Net Worth.

Incredibly, in the decade since Jackson’s passing, his estate has gone on to earn over $2 billion thanks to posthumous projects, financial investments and more. This article will explore the ups and downs of Michael Jackson’s net worth during his lifetime and after his death.

Michael Jackson’s Lavish Lifestyle

During his lifetime, Jackson earned an estimated $500 million from his own music, concerts, videos and endorsements. In the 1980s alone, he likely earned between $50-100 million per year.

However, Jackson spent money just as quickly as it came in. His lavish lifestyle cost an estimated $30-50 million per year to maintain. Some examples of Jackson’s excessive spending include:

• $17 million to purchase the sprawling Neverland Ranch estate plus $5 million in annual maintenance costs
• $20 million to settle a child molestation lawsuit in the 1990s
• $65 million invested in various unfinished film and video projects
• $12 million divorce settlement paid to ex-wife Debbie Rowe
• Tens of millions spent on exotic animals, artwork, antiques, custom cars and more

Jackson also wasted between $50-100 million on creative projects that never ended up being released. His excessive spending was enabled by yes-men hangers on and a shocking lack of financial literacy.

Jackson had massive debts looming. He took out a $380 million loan from Bank of America against his stake in the Sony/ATV music catalog. However, not even this eight-figure cash injection could sustain his spending for long.

Michael Jackson’s Net Worth at Time of Death: -$500 Million

When Michael Jackson unexpectedly died on June 25, 2009, he was $500 million in debt according to most estimates.

Jackson still owned 50% of Sony/ATV Music Publishing – a catalog now worth $2-4 billion – but he had leveraged much of his stake to secure loans. The interest payments alone were costing him tens of millions per year. Other assets like his own music catalog and Neverland Ranch had also been used to secure loans.

In essence, Jackson had managed to leverage away much of the fortune and assets he had worked so hard to build. His lavish spending had finally caught up to him and despite soon embarking on an ambitious “This Is It” comeback tour, he passed away before he could get out of the financial hole he had dug.

The King of Pop was subsequently buried in debt – an incredible fall from grace for one of music’s greatest success stories.

Posthumous Earnings Power of Jackson’s Estate

Ironically, dying ended up being one of the best financial moves Michael Jackson ever made. His estate, led by executors John Branca and John McClain, began aggressively repairing Jackson’s battered finances soon after his death.

The first priority was regaining sole ownership of Jackson’s incredibly valuable music catalogs. This was achieved by securing new recording contracts and refinancing debts with Sony and others using the income streams as collateral.

Jackson’s estate also struck several posthumous project deals that proved massively successful:

• “This Is It” Movie & Soundtrack: Grossed over $500 million worldwide
• Las Vegas Cirque Du Soleil Shows: Two theater shows still running, co-owned by estate
• Sony Music Distribution Deal: $250 million contract, largest in history at the time

Additionally, Jackson’s memorabilia and likeness became extremely valuable in death. Everything from costumes to cars were exhibited in museums before being sold at auction for tens of millions.

Licensing deals with Pepsi, video games and other brands also brought in tens of millions on top of music and ticket sales.

Estate Earnings Milestones & Net Worth

In the years immediately following Jackson’s death, estate earnings were strong enough to pay off his mammoth debts. Indeed, between 2010-2020, Jackson’s Estate likely brought in close to $2 billion.

2010 Earnings:
The estate earned approximately $310 million in the third quarter of 2010. This includes revenue from the “This Is It” documentary and soundtrack, which grossed over $500 million worldwide​​.

2011 Earnings:
In 2011, Michael Jackson’s estate earned around $145 million, making him the highest-earning deceased celebrity that year. This income was driven by music sales, licensing deals, and other ventures​.

2012 Earnings:
The estate continued to generate substantial income, again earning around $145 million in 2012. These earnings were bolstered by the ongoing popularity of Jackson’s music and various merchandising and licensing deals​​.

2014 Earnings from Cirque Du Soleil Shows:
In 2014, the estate earned over $140 million from two successful Cirque Du Soleil shows, “Michael Jackson: The Immortal World Tour” and “Michael Jackson ONE.” These shows were co-produced by the estate and were major revenue generators​.

2016 Sale of Sony/ATV Stake:
A significant financial milestone occurred in 2016 when the estate sold its remaining 50% stake in the Sony/ATV music catalog to Sony for $750 million. This sale played a crucial role in eliminating the estate’s debt and securing its financial future​.

Consequently, by 2016 Jackson’s estate had zero debts and his heirs were already receiving disbursements. Today, Forbes estimates the total net worth of Jackson’s estate at $2 billion. That will continue to grow thanks to assets like the Sony/ATV catalog, which alone is worth $2-4 billion.

The King of Pop is now likely the richest and highest-paid dead celebrity on the planet – a shocking turnaround from his finances at the time of his tragic death. I sincerely hope you find this “Michael Jackson Net Worth? How Rich He Really Was?” article helpful.