How did Michael Jackson lose all his money?
How did Michael Jackson lose all his money? The easy answer is that he spent more than he earned. What he spent it on and how much he spent tells you about the man, some of his motivations and desires.
(Inside Michael’s favorite limo)
He made a total of $175 million on Thriller. At the height of his fame in 1988, he earned $125 million (Forbes Mag source). His lawyer John Branca negotiated for him to buy the Beatles catalog for $48 million. It generated $11–$18 million a year income but his living expenses were three times that much. Michael bought Neverland for around $19.5 million. He put in excess of $37 million, building the amusement park,zoo,movie theater, fountains. He peppered the grounds with millions of dollars worth of commissioned bronze statues. It cost a minimum of $5.8 million a year to maintain BEFORE he began second mortgaging it and taking loans against it. It had a salaried full time staff, up to 150 people.
His favorite Rolls Royce was a $350,000 Phantom which is now in a storage warehouse in Los Angeles.
Michael spent months at a time in the most luxurious hotels in the world. He would rent an entire floor of hotel suites for $9,000 per suite per night. Michael actually held the record for highest rent paid in NYC for many years after he rented an upper east side townhouse for $75,000 a month while working on Off the Wall and The Wiz.
Michael was a profligate spender. Example: he bought 3 bottles of a perfume called Gianni Vive Sulman Parfum VI at a cost of $89,000 PER BOTTLE. He paid $1.5 million for the Gone With The Wind academy award, $659,000 for a ferris wheel, $978,000 for a custom made carousel, had his favorite limo interior clad with 24k gold, antiques, cut crystal.
filed in LA superior court Sept 1999 for his divorce from Debbie Rowe show his financial disclosure for basic cost of living at the time averaged a whooping $2,339,300. PER MONTH (yes you read that right, two million three hundred thirty nine thousand and $300 a month)
The breakdown follows:
$95,700 a month on gardening (Neverland)
security, 52,900 per month.
Upkeep on zoo and Amusement park, $66,200 per month.
Housekeeping and PR expenses $60,000 per month.
Legal fees $178,100 per month.
$120,000 personal and property insurance per month.
$25,600 monthly medical needs.
$85,500 monthly transportation.
$475,300 monthly costs for MJJ productions, Optimum productions.
His BASIC ,NO FRILLS ,PERSONAL expenses were an astounding $1,420,600 a MONTH. His base household expenses for Neverland EXCLUDING MORTGAGES , collateralized loans,TAXES or expenses for other properties he owned were $358,600 a month. That meant it cost almost two and a half million dollars a MONTH for Michael Jackson’s basic room and board at NeverlandShare