Michael Jackson passed away 15 years ago and now his financial situation at the time of his death has come to light.
According to court documents filed on June 21 and obtained by People, the King of Pop was $500 million in debt at the time of his death.
Additionally, the Los Angeles Timesreports that Jackson’s spending outpaced his revenue and that he was accruing debt of $30 million a year. They go on to note that public accountant William R. Ackerman offered a look into the singer’s finances and told jurors in the wrongful-death trial of Jackson in 2013 that the singer spent money on such things as donations to charity, gifts, travel, art and furniture.
“He spent a lot of money on jewelry. He was tapped out,” Ackerman said.
Reportedly, Jackson’s money problems started long before his passing, and as early as 1993 he had debt. By the time 1998 rolled out, he reportedly was $140 million in debt. However, his debt increased exponentially between 2001 and 2007 where it grew by about $170 million.
It didn’t end there as loans to the singer had their interest rates increased as well. They went from 7% to 16.8% annually, Ackerman said.
Prior to his passing, Jackson was planning on going on tour. However, once he passed away the financial liability fell onto his estate, where he owed $40 million to concert promoter AEG.
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Additionally, Jackson had “more than half a dozen lawsuits pending worldwide” and “65 creditors’ claims were filed in the Estate spawning additional lawsuits, of which several resulted in litigation,” the court documents show.
In March, People reports that the estate was on the verge of bankruptcy, which is now reportedly valued at nearly $2 billion.
The news comes as Katherine Jackson and Michael’s son Bigi “Blanket” face off in court over legal bills.
