Lawsuit: Michael Jackson Near Bankruptcy

AP via Yahoo ^ | 5/23/03 | LINDA DEUTSCH

[Brett66]

Lawsuit: Michael Jackson Near Bankruptcy
2 hours, 57 minutes ago
By LINDA DEUTSCH, AP Special Correspondent

LOS ANGELES - Michael Jackson (news), the King of Pop who amassed a half-billion-dollar fortune over the past 20 years, is saddled with debt and teetering near bankruptcy, his former financial advisers say in a lawsuit.

The lawsuit, set for trial June 18, claims Jackson's extravagant spending has created "a ticking financial time bomb waiting to explode at any moment."

Union Finance and Investment Corp. of South Korea (news - web sites) filed the lawsuit in Los Angeles County Superior Court, claiming Jackson owes the firm $12 million in fees and expenses, plus interest. Jackson previously paid the firm $3 million, the firm said. The lawsuit also seeks punitive damages.

Brian Oxman, a Jackson family attorney, said he does not believe the 44-year-old singer is near bankruptcy.

"I see no signs of this impending disaster," Oxman said. "I cannot say it for 100 percent sure because nobody knows his financial statements. But I can say it for a reasonable certainty."

Oxman also said that Union Finance has been paid for its work.

The lawsuit was filed in April 2002 by Union Finance, described as one of South Korea's leading financial advisory firms. Jackson hired Union Finance in 1998 to help straighten out his finances, according to the lawsuit.

"When they were retained, plaintiffs believed that Jackson was incredibly wealthy," the lawsuit states. "At the time plaintiffs agreed to work for Jackson, there was no clue that Jackson's extravagant lifestyle had all but bankrupted him."

The firm said it soon discovered that Jackson had only two months' worth of available funds.

Union Finance's lawyer said that he stands by the allegations in the year-old lawsuit and that he took Jackson's deposition last week in Beverly Hills.

"For whatever reason, Michael Jackson is not paying his debts," said Pierce O'Donnell, a leading entertainment finance lawyer. "He has little or no means of income. He lives off a line of credit."

He added: "The day of reckoning is near."

Forbes magazine last year estimated that Jackson was earning $50 million a year at the height of his popularity in the 1980s and '90s and had amassed $500 million over his career. Forbes estimated Jackson has $200 million in debts but a net worth of $350 million.

Jackson's 1982 album "Thriller," which has sold 26 million copies, is second behind the Eagles' first greatest hits album in all-time sales in the United States. But sales of recent Jackson albums have sagged.

Jackson's assets include his Neverland ranch in the hills above Santa Barbara and homes in Southern California and Las Vegas. Most of Jackson's assets are in musical holdings worth an estimated $450 million, including 200 Beatles titles and songs recorded by Elvis Presley (news), Forbes reported.

He is a voracious spender. In 2002, he racked up a $100,000 hotel bill on a brief trip to New York, according to Forbes.

Union Finance said it helped Jackson obtain $200 million in loans through Bank of America between 1998 and 2000. In his deposition last week, Jackson said he didn't know how much he owed on the loans, O'Donnell said.

[Pharmboy]

Too late!! Bwahahahahhahahahahahahah...

[FITZ]

For one, I'll bet his shows were extremely expensive to put on, those carnival rides and all his weird toys. Facelifts and skin bleach alone cost him a fortune. To find a doctor corrupt enough to deliberately destroy a nice looking face and make you look weird costs extra.

I think this explains his recent television specials, he desperately needs fame and fortune again. It's likely going to be Madonnas same fate ---she's got money now but she'll be spending hers on movies and tours that lose her a lot of money.

[bethelgrad]

I hope this doesn't cause him to lose face.



Ha!!! If we gave awards for wit, you'd win hands down. Good one. I can barely contain myself!

[Genesis defender]

I was going to advise Michael to cut up the plastic, but self-mutilation isn't his style.

Wait a minute....

[GnuHere]

Michael, your theater in Branson awaits. Unfortunately, I can only think of a few buildings there that are high enough for baby dangling.

[breakem]

In a couple of years he can get the Andy Williams for a discount. France is his answer, but I forgot the question.

[johnboy]

read a few years back that mc hammer, too, had squandered it all - 'only' 25 mil, though. still had his hummer, but was dancing at gas station openings. ugh. what a waste.

someone once quipped: "to turn $100,000 into $110,000 is real genious. to turn $100,000,000 into $110,000,000 is inevitable."

guess there'll always be exceptions to rules.

[Luke Skyfreeper]

Michael, your theater in Branson awaits.

LOL, I had same thought. Live just up the road from Branson.

[exit82]

Hah! Best comment so far. But you win by only a nose.

[Michael.SF.]

Paul would win any bidding war.

Ya think?

He did lose the last one.

[oceanperch]

How is he going to take care of his children's future now?

So much for children coming first.

[WKB]

He should sell off his assests, pay off his debts, downsize, and move to France

and pull a Jim Morrison!!

[cubreporter]

You bet. Didn't know that about Hammer. Darn, I used to like him so much. His music was neat... sad endings for these people who seem to have so much yet so little.

[cubreporter]

You are right. No one or not many want to hear him anymore. People are fickle and go from one star to another. Sad but true. It's up to the star to handle and invest his money wisely to take care of his futre cause once you are down and out your FRIENDS (hangers on) are gone and you are alone!

[Chantal]

No one or not many want to hear him anymore.

Even Elizabeth Taylor & Liza Minelli have no comments. He still has David Gest as a fan....(another weirdo)

[Palladin]

David Gest told Greta that he and Michael have been friends since they were 12.

Birds of a feather?

How many more of Michael's show biz friends share his perversion?

They are all being very quiet right now.

What, and more importantly WHO is on those Neverland videotapes confiscated by LEA?

[Analyzing Inconsistencies]

Jacko's finances look worse than ever:

http://money.cnn.com/2003/11/20/news/companies/michael_jackson/index.htm

No WONDER he played the race card a couple years (or fewer) ago against Sony, trying to blame his floundering sales on their alleged racism or something. It didn't work for Spike Lee vs. Warner Bros. either. Remember when he blamed them for spending "merely" all that his previous movies had grossed COMBINED on his (then new) Malcolm X box office debacle?