One of the contentious issues at the lawsuit between the Jackson family and AEG Live has been how much money Michael Jackson would have theoretically made if he hadn't died in 2009. An expert for the Jackson's testified that the pop star could have made $1.6 billion in just a few years, but another expert for the defense valued his potential earnings much lower. It may be a moot point however, as an accountant Monday that Michael was in state of crippling debt when he passed.
Jackson continued to pile up loans to pay for his expensive lifestyle, including charitable donations, gifts, travel, art and jewelry. His Neverland Ranch cost absurd amounts to run, between its massive staff, private zoo and train. The biggest drain on his finances was paying interest on his previous loans however. By 2009, Jackson was paying more than $30 million a year in interest on loans.
Jackson reportedly had more than $30 million in debt by 1993. By 1998, that number had increased to $140 million. By the time of Jackson's death, he was between $400 and $500 million in debt. "He was tapped out," said William Ackerman, the accountant. Furthermore, Jackson's grandiose tours had stopped turning a profit. The "Dangerous" tour barely broke even and the "HIStory" tour lost $11.2 million.
The seemingly only profitable aspect of Jackson's life was his ownership of the Sony/ATV music catalogue, which the IRS valued to be worth several hundred million dollars more than the pop star's cumulative debt.
The Jacksons are suing for up to $40 billion, and AEG isn't sparing any expense to avoid the settlement. Jackson's ex-wife Debbie Rowe will be the next witness called to the stand for the defense.
