Michael Jackson earned an estimated net worth of over $600 million at his peak from his decades of record-breaking music sales, sold-out tours, lucrative endorsements and savvy investments. However, later in life his excessive spending seriously eroded that vast fortune. Even after his untimely death in 2009, Jackson‘s estate has rebounded thanks in large part to the enduring popularity of his iconic songs and persona. Let‘s take a detailed look at how the King of Pop made and spent his money over an incredible career.
Earning Over $4 Billion from Record Sales
Without a doubt, the foundation of Michael Jackson‘s wealth came from his recording contracts and the mind-boggling sales of his albums. In total, it‘s estimated Jackson earned over $4 billion just from record sales over his career.
His 1982 album Thriller remains the best-selling album of all time according to Guinness World Records. Thriller has moved 66 million units globally since its release. Even today, it still sells over 100,000 copies per year in the US. At its peak, Thriller was selling 1 million copies per week. Jackson earned $2 per album sold which meant he pocketed $132 million just from Thriller sales.
Other top selling Michael Jackson albums include:
- Bad – 32 million copies sold worldwide
- Dangerous – 32 million copies worldwide
- Off the Wall – 20 million copies worldwide
- HIStory – 18 million copies worldwide
In comparison, the top selling albums of other music legends include:
- Eagles – Greatest Hits: 38 million
- AC/DC – Back in Black: 29 million
- Pink Floyd – Dark Side of the Moon: 27 million
Jackson‘s albums continue to sell even after his passing, totaling over 400 million albums sold in his lifetime.
Tours Grossing Over Half a Billion Dollars
Another huge source of income for Jackson was revenue from his record-breaking world tours. His three solo tours – Bad, Dangerous and HIStory – grossed over $505 million total.
The Bad tour spanned 15 months from 1987-1989 playing 123 sold-out shows across 15 countries. Total gross revenue was $125 million from attendance of 4.4 million fans.
His Dangerous tour topped that from 1992-1993 with 69 shows and 3.5 million in attendance earning $165 million.
Finally the HIStory tour grossed $165 million as well from 82 shows with 4.5 million fans.
For comparison, mega rock band U2 grossed $736 million from just their 360° tour which at the time was the highest grossing tour ever.
Cashing In Through Endorsements
Jackson supplemented his music income with lucrative endorsement deals for major brands. Here are some of his biggest and most profitable deals:
- 1983 – Pepsi paid Jackson $5 million over 4 years and he starred in several commercials.
- 1988 – L.A. Gear signed Jackson to $20 million deal to promote their new shoe line.
- 1991 – Sega Genesis game Michael Jackson‘s Moonwalker earned him $700,000.
- 1991 – Jackson signed on for $15 million with Sony to promote CDs and other electronics.
For comparison, in their primes athlete endorsements reached:
- Michael Jordan – $60 million per year
- Tiger Woods – $100 million per year
So while not on par with the most elite athletes, Jackson‘s deals were quite substantial in the entertainment world.
Cashing in on Merchandise and Memorabilia
Capitalizing on his immense fame and popularity, Michael Jackson brought in steady income from merchandise sales. He earned especially high royalties from sales of the iconic red and black leather jacket from Thriller which still sells briskly today.
Other popular merchandise included t-shirts, posters, hats and jackets featuring Jackson‘s image or logos. There was also high demand for Jackson memorabilia like signed photos, tour programs and costumes. His estate has earned tens of millions from sales of Michael Jackson merchandise and collectibles.
Reaping Returns from Shrewd Investments
While Jackson certainly splurged lavishly, he also made smart investments that paid off big. In 1985 he outbid Paul McCartney to acquire the ATV music catalog including over 200 Beatles songs for $47.5 million. He then merged it with Sony to form Sony/ATV which owned copyrights to tens of thousands of popular songs.
Jackson originally owned 50% of the company but struggled financially in the 2000s and had to sell off some of his stake. However, his estate still retained 10% ownership which it later sold back to Sony for $750 million in 2016. The investment in music rights proved to be extremely lucrative over the long run.
Settlements and Legal Fees Took a Financial Toll
Unfortunately, the serious allegations of child abuse against Jackson took a heavy financial toll as well as damaging his reputation.
In 1994, Jackson paid approximately $23 million to settle a lawsuit brought by the Chandler family. An even more costly settlement came in 2004 with the Arvizo family which reportedly cost Jackson between $15 to $40 million.
In total, it‘s estimated Jackson may have paid as much as $200 million in legal settlements according to accounts by his lawyers. That combined with soaring legal fees from fighting the charges delivered a huge blow to his personal fortune.
Lavish Lifestyle Led to Over $500 Million in Debt
As Jackson‘s income started declining in the 2000s, his absurdly extravagant lifestyle began catching up to him in a huge way. Some examples of his over-the-top spending include:
- $17 million to purchase the 2,700-acre Neverland Ranch plus $5 million in annual maintenance costs
- Exotic pets like Bubbles the Chimp cost up to $125,000 per year
- Fleet of luxury cars including Bentleys, Rolls Royces and Ferraris
- Priceless art collection with works by Warhol, Degas, Rembrandt and more
- Costly plastic surgeries and cosmetic procedures to alter his looks
A forensic accountant estimated that by the early 2000s Jackson was spending $30 million more per year than he earned. He had taken out loans totaling over $200 million just to sustain his lifestyle. At the time of his death, Jackson was saddled with over $500 million in debts.
Net Worth Soared to $111 Million After Estate Management
When Michael Jackson unexpectedly passed away in 2009, many financial experts predicted his estate would go bankrupt under the massive debt burden. However, executors John Branca and John McClain proved themselves to be astute managers of Jackson‘s assets.
They renegotiated a new deal with Sony Music to release posthumous albums like Xscape which sold over 2 million copies worldwide. The estate also authorized projects like Cirque du Soleil‘s Michael Jackson ONE show in Las Vegas which has grossed over $120 million to date.
In 2021, after settling debts and capitalizing on new revenue streams, Jackson‘s estate was valued by tax courts at $111.5 million – a remarkable turnaround from insolvency concerns after his death.
Children Received Allowances and Trust Funds
According to Jackson‘s will, his three children Paris, Prince and Blanket each received around $10 million after existing debts were settled. In addition, the children get annual allowances until age 30 and staggered access to trust funds at ages 30, 35 and 40.
It‘s estimated that by age 40, each child will have inherited $100-200 million apiece from their late father‘s estate. Today at just 29, Prince Jackson already has a net worth estimated at $100 million.
Iconic Music and Style Keep MJ Relevant and Profitable
Remarkably, Michael Jackson remains one of the world‘s highest paid celebrities even 12 years following his death. His estate has earned well over $2.5 billion since he died. In 2022, Jackson ranked #6 on Forbes‘ annual list of top earning dead celebrities, bringing in $75 million that year.
Jackson‘s universal and timeless appeal stems from his iconic singing and dancing style. Songs like "Beat It", "Billie Jean" and "Smooth Criminal" remain staples played around the world. His music videos on MTV ushered in a new visual era in pop culture. Fans still love imitating his famous moonwalk dance moves.
Even today, Michael Jackson remains instantly recognizable due to his unique fashion sense including the single glittery glove, black fedora, sparkling socks and more. His influence permeates both music and pop culture thanks to unforgettable songs and a one-of-a-kind persona.
