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US pop star Michael Jackson gestures during a news conference - Source: Reuters -
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Along with a vast musical legacy and legions of adoring fans,
pop superstar Michael Jackson leaves behind a mountain of debt and
an unfulfilled comeback many hoped would rake in millions and erase
his financial troubles.
The King of Pop died suddenly at the age of 50, after a career
spanning 40 years that included the biggest-selling pop album of
all time, Thriller.
Despite taking in hundreds of millions of dollars as one of the
most successful pop musicians of all time, Jackson racked up about
$774 million of debt, according to sources cited by The Wall Street
Journal earlier this month.
His top assets, however, including copyrights to his own songs and
a stake in the Beatles' song catalogue, are worth more than $1.5
billion, according to a music industry source.
Jackson's career and image were tarnished by his mounting financial
and legal troubles in recent years.
Known for huge shopping sprees for toys and antiques, Jackson was
accused by an accountant during his 2005 trial on child molestation
charges of spending $30 million to $40 million more than he was
bringing in per year.
The lavish lifestyle was made possible in part by a $310 million
loan secured by his stake in the Beatles catalogue.
Jackson owned the music in a joint venture with Sony Corp known as Sony/ATV.
Jackson refinanced those loans in 2006 in a bid to stave off
insolvency.
In addition, Jackson last November had to hand over the title on
his Neverland estate in California to a company made up of himself
and Los Angeles-based real estate investment trust Colony Capital
LLC, the firm that holds his $35 million loan on the
property.
Colony Capital has been sprucing up the ranch and planned to sell
it, according to the Journal. Colony Chief Executive Tom Barrack
told the newspaper last month the estate could fetch $108 million
to $123 million or more if Jackson's career were revitalized.
In a statement, Barrack said he was deeply saddened by Jackson's
death, but did not comment on the impact on Colony's
business.
Planned big comeback
To help turn around his financial fortunes; Jackson was planning a
major comeback in London this summer, 12 years since his last
tour.
AEG Live, which was promoting the 50-concert run at the 02 Arena,
stands to lose as much as $61 million if its insurance is not
substantial enough to cover what it has already spent on the
production, Billboard reported, and one attorney said the company
would not be able to recover any of those costs from Jackson's
estate.
"The concert promoters can't sue the estate," said Bob Rasmussen,
dean of the Gould Law School at the University of Southern
California.
"Once he dies, he doesn't have any obligation to perform."
AEG, wholly owned by privately held Anschutz Co, will also
certainly miss out on the $619 million the company estimated it
could raise through a 3 1/2-year plan to work with Jackson.
But Jackson's greatest financial returns may come in the wake of
his death.
His long-term record company, Sony Music Entertainment, will likely reissue special versions of some his biggest-selling albums and possibly even rare recordings.
What's your reaction to Michael Jackson's death? Discuss it on the message board below. Or if you have a special story to share about him email us at interactivenews@tvnz.co.nz
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Post new commentmotukowhai said on 2009-07-08 @ 22:20 NZDT: Report abusive post
"If we looked at mortality as the whole of existence, then the pain, sorrow, failure and short life would be a calamity; but if we look upon life as an eternal thing stretching far into the premortal past and on into the eternal post-death future, then all happenings may be put in proper perspective." Quote by President Spencer W. Kimball. Take your rest now Michael and do so in peace.
Vaai said on 2009-07-08 @ 14:01 NZDT: Report abusive post
REST IN PEACE KING OF THE POP WE LOVE YOU
jaxlino said on 2009-07-08 @ 12:31 NZDT: Report abusive post
the media killed the princess and they did the same thing with Michael, do they have any respect? now Michael can rest and just watch upon his children ..i saw Miss Rowe being pressured by the media and gosh thats how much in your face they are!! they darn right wanna know your business..I know it's their job but they don't need to ruin peoples lives.. michael i have three words for you.. "GO GET EM"
jaxlino said on 2009-07-08 @ 12:22 NZDT: Report abusive post
RIP my friend, and hope you haunt the media stalkers.. they ***** with your life now it's your turn for revenge..sad to say I honestly and personally think he topped himself because of the media on his tail constantly and they let the whole world know his business, we loved his music, his children and his family not his personal indepth life, he was tired and couldn't fight no more, he had a huge debt that no-one gave a toss about, and now hes gone, all the media is like poor michael... whatever!
boyracer said on 2009-07-08 @ 11:00 NZDT: Report abusive post
Some people will always look at the negative side of things! Thats just the way they are. MJ was a VERY talented individual (Not just a singer and dancer), His message is in his songs (which comes from the heart). I was watching the memorial service this morning and thinking to myself how many people he touched on positively and what he means to them. His music will no doubt live on, and people will know in 20+ years who sang his songs!