Michael Jackson was in a major debt of $500 million at the time of his death

After Jackson's passing, the financial strain did not end. The burden of the cancelled tour fell on his estate, which owed roughly $40 million to concert promoter AEG.

Michael Jackson, the legendary King of Pop, passed away on June 25, 2009, at the age of 50, due to apparent cardiac arrest in Los Angeles. However, court documents filed on June 21 revealed a shocking detail: Jackson was over $500 million in debt at the time of his death.

Just the night before his untimely demise, Jackson had been diligently rehearsing for six hours at the Staples Center in Los Angeles. This intense preparation was for his much-anticipated comeback tour, the This Is It residency at the O2 Arena in London. Scheduled to run from July 2009 to March 2010, the tour was supposed to mark Jackson's return to the spotlight. He had written new songs and invested countless hours in perfecting his performances. Yet, behind the scenes, financial troubles loomed large.

Jackson's extravagant lifestyle had led to an annual debt increase of $30 million, as reported by the Los Angeles Times. William R. Ackerman, a certified public accountant, testified in August 2013 during the wrongful-death trial against AEG Live.

Ackerman's testimony stated, "He spent a lot of money on jewelry. He was tapped out," Ackerman stated, emphasising the extent of Jackson's financial mismanagement.

Jackson's debt issues began as early as 1993, and by 1998, he owed a staggering $140 million. From June 2001 to June 2009, his debt further ballooned by approximately $170 million. The interest on Jackson's loans was also a significant burden, fluctuating between just under 7% to as high as 16.8% annually.

In a bid to manage his mounting debts, Jackson used his stake in a valuable song catalog, which included the Beatles' hits, as collateral for about $270 million in loans from Bank of America. This debt was eventually sold in 2005 to Fortress Investment Group, a company specialising in distressed debt.

After Jackson's passing, the financial strain did not end. The burden of the cancelled tour fell on his estate, which owed roughly $40 million to concert promoter AEG. The recent probate petition highlighted the grim reality: there was little hope of generating sufficient income from Jackson's already highly leveraged assets to cover these debts.

Jackson's story is a poignant reminder of the complexities and contradictions in the lives of even the most celebrated individuals. Despite his immense talent and global fame, his financial life was fraught with challenges that ultimately left him deeply in debt. This revelation adds another layer to the legacy of a man whose music continues to inspire millions around the world.