Michael Jackson’s debts will be fully paid off by the end of this year
In July of this year, on this page خواندید that most of Michael Jackson’s debts had been paid and the remaining balance would be settled by the end of this year. Forbes, in an article quoting representatives of the King of Pop’s foundation, reported that when the New Year arrives, nothing will remain of this debt.
Most of Michael Jackson’s debts came from loans he took out from major banks in order to finance the purchase of music rights and keep them in his possession. For example, a $75 million loan he received from Mijac to preserve his song catalog. After Michael’s death, his foundation entered negotiations with the bank and was able to reduce the interest rate on this loan from 15.5% to 4%.
The remaining loans are expected to be paid off by the end of this fall. The foundation also paid AEG $35 million in damages from the This Is It concerts in London, which were canceled due to Michael’s death, and it also fully settled the $4.1 million mortgage on the Jackson family’s memory house, the Haynhurst. Minor debts to third parties have also been negotiated and/or settled—for example, Michael’s $2.3 million debt to John Landis, the director of the thriller film.
The $60 million film contract for This Is It, or the biggest music deal in history worth $250 million with Sony, after Michael’s death, provided the cash needed for the foundation to pay the King of Pop’s debts.
Forbes says that a $280 million debt also remains, related to the loan Michael took from a bank for Sony/ATV’s music publishing company. This company is worth more than $2 billion, so paying this debt is not currently essential. The loan’s interest rate has also been reduced from 5.8% to 2.9%, and if needed, the foundation can settle this debt as well as soon as possible. By buying more publishing rights and increasing liquidity, the Michael Jackson Foundation can easily eliminate this remaining portion of the debt.
At present, the foundation is generating income through the Immortal Tour / Cirque du Soleil (which became the number one tour in the United States and earned $160 million this year), as well as the new Bad25 collection and its new collaboration with Pepsi.
Source: eMJey.com / Forbes