Frugal Underground

Michael and His Millions

10 Interesting Money Facts about the King of Pop and My Thoughts on These

In his death, Michael Jackson, the King of Pop has left legions of fans mourning over one of the greatest pop artists the world has ever known. His legacy of music is one that will live on through the years despite his early demise.

I’ve grownup on Michael Jackson songs and for a time, was obsessed about learning how to “moonwalk” – until I finally just gave up. Being a Jackson fan however has not made me oblivious to the fact that in the later years, his finances, as with his career, were quickly taking a turn for the worse. When you think of the millions that have passed through his hands from being a performer extraordinaire, it’s just bewildering how he left this world reportedly awash in millions of debt as well.

Let’s take a closer look at some of these mind-boggling money facts:

$700 million – For the entire duration of his career, it is said that Michael Jackson earned at least this much in album sales, concert tours, and other business interests.

$115 million - Thriller, his second album released in 1982 which went on to become the best-selling album of all time with over 51 million copies sold (according to the Guinness Book of World Records), was estimated to have earned a whooping $115 million for the King of Pop.

$1.5 million - Was the settlement amount Michael received from Pepsi Co. after pyrotechnics accidentally caused his head to be burned while shooting a Pepsi commercial. He donated the whole amount to the Brotman Medical Center in Culver City, California where he was treated. Brotman later renamed its burn unit to “Michael Jackson Burn Center.”

$5 million - His share of the 1984 Victory Tour headlined by The Jacksons – an amount he later gave to charity.

$47.5 million – Was the amount he paid for a music catalogue of 4,000 songs including about 200 of the Beatles’ best tunes, which he bought from ATV Songs in 1985. This venture is said to have earned him about $300 million in later years.

$17 million - Neverland Ranch was reported to have cost this much way back in 1988 when he acquired it.

$20 to $30 million – Living the life of a music superstar apparently cost a lot. At some point in his life, Michael was reported to overspend in the tens of millions every year.

$4 million - Was how much the upkeep of Neverland cost. Enclosed in the 2,800-acre property were a private zoo, a movie theater, a ferris wheel, and a roller coaster.

$30 million – The amount reportedly spent already by AEG Live, the organizer for Jackson’s series of 50 concerts set to start supposedly on July 13, 2009. An estimated 800,000 people have already bought their tickets.

$236 million – The King of Pop’s estimated net worth as of 2007.

Looking at these figures, here are perhaps some of the lessons we can pick up from them:

Give as much as you receive.

Maybe Michael did lead too lavish a lifestyle. But he was also known for his philanthropic work that span across countries around the world. Hungry children, the poor in Africa, hospitals, and the HIV/AIDS research were only a few of those who benefited from his largesse.

Invest in worthwhile ventures.

Before all the trappings of the superstar life got to him, Michael Jackson was also a savvy businessman. Proof of this is his going into the music cataloguing business, which proved to be his one lifeline when the going got tough.

Spend less than what you earn.

Whether we earn by the tens or the millions, the basic principle of not spending more than you earn applies obviously applies to all walks of life.

Have a care for the future.

It’s sad to see that for all the people surrounding him, he was really financially ill-advised. And because most of us will never have the chance to make even a tenth of what Michael Jackson earned in a year, it makes it even more important for us to keep our own goals and security in mind.