Michael Jackson was $385 million in debt when he died in 2009.
This information was revealed during the lawsuit started by Katherine Jackson, the King Of Pop’s mother, against the concert promoter AEG Live.
A forensic accountant ventured into Jackson’s accounts during the wrongful death trial, and William R Ackerman, who testified as a defence witness in the case, admitted that the singer was “tapped out” financially.
The LA Times reported that Ackerman revealed that Jackson spent a vast sum of money on furniture, art, charity, gifts, travel and other lavish items.
Ackerman stated, “He spent a lot of money of jewelry,” as well as admitting that Neverland Ranch, which he referred to as “a mini-theme park,”cost Jackson a fortune to maintain.
Ackerman revealed that he had to spend money on maintenance staff, as well as other employees for the zoo and train, the latter of which traveled around his property.
Ackerman added “consistently, his largest expenditure was interest expense. He spent a ton of money on interest.”
The LA Times reported that the musician’s biggest expense was the $30 million he paid off on his debts, while his interest on this sum continued to grow and grow over the years. At times it was as little as 7%, but it sometimes rose to around 16.8% annually.
In 1993, Jackson owed around $30 million, however by 1998 this sum had risen to $140 million. From June 2001 to June 2009, this debt then grew even further to $170 million, and by the time of his death Ackerman revealed that Jackson actually owed somewhere between $400 million and $500 million.
At the time of his death, Jackson wasn’t able to be granted a new loan and he was already several months behind the payment of his mother’s San Fernando Valley home. Ackerman will continue with his testimony over the next few days whilst the trial continues.
[Image via landmarkmedia /Shutterstock]
