Michael Jackson’s 10 most extravagant purchases
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On his death in June, it was reported that Michael Jackson was in $400 million of debt. Now, it looks as if the debt will be easily cleared. By some estimates his estate will make more than £100m this year alone, thanks to a surge in the number of fans buying records and memorabilia, and the release of This Is It, the film about the final days of his life.
But how did Jacko manage to lose so much money in the first place? Times Money reflects on some of his more excessive spending…
1) The Beatles back catalogue
Jackson’s biggest purchase turned out to be his best. In 1985 he paid $47.5m for ATV Music, which owned the copyright to 259 Beatles tracks. The income it generated kept him afloat during periods of mammoth spending sprees.
2) Property
Jackson bought his pride and joy, the 2,500 acre California ranch Neverland, in 1988 for $41.6m. He built a zoo, amusement park and a 50-seat cinema on the site, and invited hundreds of kids to play there over the years. Post-abuse allegations Jackson also paid £100,000 a month to rent a Bel-Air mansion, which had 13 bathrooms.
3) Out of court settlements
In 1993 13-year-old Jordy Chandler and his father, Evan Chandler, accused Jackson of sexual abuse. Tape recordings of Evan Chandler discussing the allegations emerged, where he was captured saying: “If I go through with this, I win big-time. There’s no way I lose. I will get everything I want.”
He was right: MJ settled with the Chandler family out of court for $22million.
It was deja-vu for Jackson a decade later, when, after Martin Bashir’s controversial documentary Living with Michael Jackson, 13 year-old Gavin Arvizo claimed Jackson abused him.
After the release of a warrant for his arrest, Jackson surrendered himself to police and posted $3million bail, which was returned after a lengthy court case, resulting in Jackson’s acquittal and hundreds of thousands of pounds of legal bills.
4) Animals
On his death, Jackson allegedly left his pet chimp Bubbles $2million, making him the richest chimpanzee in the world. There are also reports that he shelled out $35,000 for a one year old pet tiger, which he had flown over to Neverland to keep him company.
5) Cars
Jackson had 75 cars, including a $350,000 Rolls-Royce Phantom, a 1999 Rolls Royce limousine with a gold-encrusted interior designed by Jackson himself and a 1954 Cadillac Fleetwood Series four-door sedan which was driven by Morgan Freeman in the film Driving Miss Daisy.
6) Body and soul
No one quite knows how much Jackson spent on surgery or drugs over his life time, but we guess it was a lot. According to court records, released when he was on trial in 2005, he made one single payment for cream to treat his skin complaint, vitiligo, of the equivalent of £41,000, and he spent $25,600 a month on ‘medical needs’.
The sheik subsidising Jackson in the latter decade of his life, claims he also spent almost $350,000 on a brain-power guru to help the singer’s creative juices flow. Then there was the rumour that in 1986 Jackson bought a pressurised oxygen chamber, which he slept in, for the equivalent of £91,000.
7) Neverland
The upkeep of Jackson’s California ranch cost a few bob- at least $4million a year. That included an estimated $95,700 on gardening, $51,900 on security, $66,200 on the running of his zoo and amusement park and $60,200 on housekeeping and PR. Each month.
Interest on his debts
By early 2000, Jackson’s biggest expenses were no longer private jets and flash cars, but the interest on his enormous borrowings. According to one ‘executive involved in his affairs’, Jackson was making monthly payments of about $4.5 million in 2005 on a debt of $270million. That works out at an annual interest rate of about 20 per cent.
9) Gifts
Jackson showered his loyal friends with gifts, $42,600 a month’s worth of gifts. After Elizabeth Taylor defended him in the documentary The Michael Jackson Interview: The footage you were never meant to see, Jackson bought her a $600,000 necklace as a little thank you.
10) Bits and bobs for his house
Jackson burnt through his money every time he stepped in to a luxury store. In Bashir’s documentary you see Jackson wandering round a Las Vegas furniture shop, pointing at vases and chess sets and oil paintings while the salesman rubs his hands. He spent hundreds of thousands of dollars on that trip alone.
In 1987 rumour had it that Jackson put in a $1million bid for the bones of the elephant man, which he later denied, and that in the 90s he spent $4million on life size bronze statues of Peter Pan playing with children.
Alvin Malnik, a former financial adviser to Jackson once said: “I think that Michael never had any concept of fiscal responsibility. He was an individual that had been overindulged by those that represented him or worked for him for all of his life. For Michael, it was whatever he wanted at the time he wanted.”
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