Published reports indicate that Michael Jackson has serious financial woes caused by, in part, his lavish, opulent lifestyle. Three years ago, Jackson reportedly took out a $200 million loan from an unspecified bank, reports the New York Post. The loan was guaranteed by Sony. Jackson put up his stake in Sony ATV publishing, which includes the Beatle's catalogue he outbid Paul McCartney on years ago, as collateral.
The loan is structured in such a way that Jackson must pay it off in one lump sum, and if he cannot come up with the full amount, he will have to forfeit his stake in Sony ATV, and the Beatles' catalogue will be transferred to Sony, which would then pay back the outstanding loan.
Jackson was expected to gross up to $14 million for his two Madison Square Garden concerts, Sept. 7 and 10, but the shows had numerous expensive tickets unsold before the weekend. Jackson's brother Jermaine initially dropped out of the concert, in part, because no money was going to charity. Jermaine changed his mind and rejoined the lineup, but Jackson still did not declare a charity. Up until the night of the first concert, there was still no charity publicized. During the first concert, Marlon Brando sat on a couch and talked about child abuse, starvation and disease. He then added that Jackson intended to donate money to build a children's hospital in Florida.
Reports that the shows had plenty of available tickets were in contrast to the Jackson publicity campaign that the shows sold out virtually on the first day of sale.
The Post also reports that Jackson has spent a lot of time over the past two years in a $10,000 a night suite in New York's Four Seasons Hotel. He also spends $14 million a year to maintain his ranch Neverland and an incredible $8 million a month on personal expenses.
The Post also claims that several Jackson staffers have not been paid in six months, and in June, Jackson shuttered Jackson International, which handled all his money and investments. He apparently created a new company, Pan International, with Derek Rundell and Gary "Court" Coursey, to handle his financial matters. The two financial advisers have just sued Jackson for $25 million, not only for payment for services and damages but "an accounting of defendant's books and records relating to any and all new ventures, financings and investments."
They claim they entered into an agreement with Jackson to give him "advice, consultation and assistance" and that the deal could only be dissolved on 60 days notice. But according to the suit, they were dumped in July and claim they never were paid their $60,000 a month service fee.
Rundell and Coursey met Jackson when they ran HollywoodTickets.com, and Jackson reportedly invested $20 million in the company (other sources told the Post the figure was closer to $2 million), but the company folded just a few months after Jackson invested.