Michael Jackson secured $200 million in loans from Bank of America

June 26, 2009 4 Comments »

Here is an interesting snippet. According to Yahoo Music, Michael Jackson (RIP) apparently died while roughly $400 million in debt! Wow! That is unbelievable considering he was a multi-billion dollar business at the height of his success in the late 80′s and early 90′s.

What makes this fact even more intriguing is that roughly half of his overall debt ($200 million) was secured in loans from Bank of America!

Apparently he ran into the beginning of his financial problems after news of his first scandal came on the scene in 1993. Shortly after he agreed to a deal with Sony in 1995 to merge ATV with Sony’s library of songs and sold Sony music publishing rights for $95 million. Then in 2001, he used his half of the ATV assets as collateral to secure $200 million in loans from Bank of America.

The yahoo news article doesn’t state any additional facts about the current state of his loan with B of A, but I would have to imagine it is still largely unpaid …and building.

If anyone has any info on this subject please share!

Side Note: Bank of America stock price up 3.25% today.

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  • Jenni

    RIP to a legend! Who pays his debt now?? Is bank of america shit out of luck?

  • BankVibe

    A legend indeed!

    I’m not sure about the current state of that loan, I am hoping to find out shortly and will post when I do…

  • Mike

    His music catalog is said to be worth at least $500 million to $2 billion dollars. Most people are pegging it at $1.5-$2.0 billion range.

  • Blogging Banks

    BV,

    MJ actually merged his ATV rights with Sony Music. So that franchise alone is said be worth about $1 billion. Jacko’s debts are about 400 mln.. So I would say he was ok.. Furthermore his brand would now stay forever and generate residual incomes for centuries to come..