The bizarre star is in debt for at least $200 million he has borrowed to maintain his preference for $10,000-a-night hotel suites at the Four Seasons, his $50 million Neverland ranch and assorted perks. Much of the loan came from Sony, and Jackson put up as collateral his 50% interest in Sony ATV, which owns 300,000 songs, including 200 Beatles titles. Jackson also owns songs recorded by Elvis Presley and other stars. His publishing holdings are now worth about $450 million.
Jackson needed a big hit with his latest album, Invincible. But in eight months it has sold just 6 million copies worldwide, a poor return for the $25 million he spent to produce it (on top of Sony's $5 million). Better-selling albums from, say, Britney Spears or 'N Sync cost less than $5 million to make. Jackson blames Sony for failing to promote the album. Sony contends it has spared no expense.
The singer doesn't look to be in imminent danger of going broke. Forbes estimates his net worth at $350 million, but he has heavy liens against his property, and his spending is out of control. Jackson spends millions a year on taxes and upkeep for Neverland and homes for relatives in southern California and Las Vegas. In the spring of 2002, he racked up a $100,000 hotel bill on a brief trip to New York. A Beverly Hills jeweler, who describes him as kind but careless with his money, has sued him for payment for a $2 million watch. Once, on the way to visit pal Elizabeth Taylor at the Bellagio in Las Vegas, Jackson made an impromptu stop to pick up a $10,000 bottle of perfume as a gift.
That kind of largesse can't last much longer unless Jackson's career reignites. For the first time in four decades he finds himself without a record contract, then there will be the multimillion dollar legal bills to pay. But the real culprit is--as Jackson himself sang so beautifully on an earlier album--"The Man In the Mirror."
]]>
| A Franchise in Decline | |
| Michael Jackson's earnings from album sales are ebbing. Here's an estimate of the singer's income and wealth. | |
| Off the Wall: | $37 million |
| Thriller: | $115 million |
| Bad: | $57.5 million |
| Dangerous: | $57.5 million |
| HIStory: | $35 million |
| Blood on the Dance Floor: | $10 million |
| Invincible: | $15 million |
| OTHER INCOME SOURCES: | |
| Tour earnings: | $100 million |
| Endorsements: | $30 million |
| Videos/films: | $20 million |
| Merchandise: | $25 million |
| Cumulative earnings: | $502 million |
| Assets: | $100 million (Neverland ranch; Encino and Las Vegas homes; other properties); $450 million (50% stake in Sony ATV and other music publishing) |
| Debt: | $200 million |
| Net worth: | $350 million |
More From Forbes
Michael Jackson To Open Neverland Ranch 08.29.03
Michael Jackson Settles Suit 06.12.03
Michael Jackson Heads For The Beach 01.17.03
Michael Jackson Finds A Champion 06.06.02