Did Jacko die broke?

[pscot]

Nobody quite knows, but one thing is certain: with three minor children and a numerous, squabbling family, he lawyers will get fat on whatever is left.

http://blogs.wsj.com/wealth/2009/06/26/what-is-michael-jacksons-estate-worth/

It’s well known that Michael Jackson died with piles of debt.

Despite his millions of records sold, he spent money faster than an Arab prince, but without the recurring oil income. A recent article by Ethan Smith in the Wall Street Journal said Mr. Jackson had debts of up to $500 million.

Still, Mr. Jackson made one smart financial bet during his life: buying the 50% interest in a music publishing catalog that includes the rights to 251 Beatles’ songs. Estimates for that stake range from $500 million to $1 billion, if you also include the rights to his own songs.

[kestrel91316]

1. On the bright side, now that MJ is dead he can't SPEND anymore,

so the income from his assets is rapidly refilling his estate's coffers as we speak. The royalties are pouring in even now. By the time the estate gets settled it will probably be many millions in the black.

That guy knew how to waste money better than anyone I've ever heard of. He was like the lottery winners who blow millions almost overnight.

[rocktivity]

2. Doesn't Sony own a piece of the Beatles catalog?

Michael called Sony "evil" after borrowing a lot of money from them--using the catalog rights as collateral.

And rumor has it that The Beatle's re-inherit the catalog after Jackson's death. Knowing that they were on less and friendly terms, I'll bet Michael never dreamed that he wouldn't outlive them.

:headbang:
rocktivity

[get the red out]

3. Joe won't be broke

He is trying to make as much money off his dead son as he can before the body gets cold.

[theoldman]

4. I think people forget that assets may not be liquid.

I can borrow money against my house and therefore be in debt. If I die and leave my house to my children they can sell it, pay off my debt, and spend the rest. This is the situation with MJ.

[AndyA]

5. The Holmby Hills rental house he fell ill in cost him $100,000/month

I guess he needed something big for security reasons, but that does seem a bit wasteful to me.

You can't take it with you, so you might as well spend it while you can. I'm sure there will be enough for his kids when all is said and done.

[niceypoo]

6. He was spending about 30$ mil more than he had coming in

every year, from what I have read. The upcoming tour had a lot to do with his debts and it was estimated he could have made 400$ mil from a world tour.

[IADEMO2004]

7. MJ estate should hire whoever runs Elvis's estate or trust

Elvis is still making millions a year.

[Po_d Mainiac]

8. Who said Elvis is dead?

How else would Krispy Kreme have grown so quickly? :evilgrin:

[tomreedtoon]

9. But Elvis's career was much more fruitful.

I don't mean that he was "better" - I don't want to get into comparing talents. I also don't want to get into the inevitable race arguments.

Elvis, simply, did a lot more. Jackson stayed a hermit, didn't pal with his fans, didn't associate with him. In his book about Jackson, "Trapped," Dave Marsh mentioned that during the Victory tour, during a sentimental ballad, Jackson turned his back to the audience and sang to a TV camera that was mounted upstage. You could only see him on a monitor. He wanted adulation, not contact, from his fans.

Also, Colonel Parker made Elvis work a lot more. Vegas shows, a double handful of crappy movies, TV specials, releases and re-releases of albums. His image and voice were available in a lot of different ways. Jackson only made one movie, as I recall; The Wiz. A flop. His "Victory Tour" was expensive and exclusionary. If you can name an album Jackson did after "Bad," I'd be surprised. His so-called London shows, had he lived to do them, might have given him a more populist appearance, being closer to his fans; we'll never know.

You can criticize Elvis's behavior pretty thoroughly; Goldman did that in his biography. But it didn't stick to him as badly as Jackson's scandals stuck to him.

[cbdo2007]

10. Um...no he's not broke.

Just the Sony/ATV music publishing contract can wipe out all of his debt.

Then, there is all of his royalties and unreleased songs and merchandise which will surely bring in tens of millions of dollars per year.

Yes, add all of that to the fact that he can't spend any more, and his finances are definitely in the +

Worldwide, look for his estate to be bringing in as much as Elvis over the next decade at least.

[MADem]

11. Total up his assets, and deduct at least four hundred million from it, maybe more. NT

[mrbill]

12. don't forget the estate taxes ........

If his estate was worth say a billion bucks with the Beatles catalog, his catalog, the warehouses full of stuff he collected, his interest in Neverland, the descendible right of publicity, etc when he died less $500 million in debts, that's a worth of $500 million.

Estate tax on $500 million less $3 million = $497 million @ .45% = $223,650,000.

The lawyers and the IRS are going to have fun sorting this out.