Long before his death, we heard more about Michael Jackson’s financial troubles than his incredible music.
Even at the end, he appeared to be living above his means, which is astounding considering he brought in millions every year in royalties despite not having a musical hit in years. He was reportedly more than $300 million in debt.
There’s a lesson to be learned from Jackson’s economic plight.
During Jackson’s 2005 trial on child molestation charges, a forensic accountant said the King of Pop, despite having extraordinary assets — the rights to his own music and more than 200 songs by the Beatles — was spending more money than he earned: between $20 million and $30 million a year more.
In one of his lesser-known songs, “Money” from his “HIStory” CD, Jackson asks, “Are you infected with the same disease of lust, gluttony and greed?”
Although the lyrics express anger at people who will do anything for money, it was perhaps Jackson’s own excessive indulgence that contributed in part to his fiscal difficulties.
That’s not unlike many other people. We are in a recession because of overspending by our governments, corporations and citizens. Why then should we be surprised that our icons succumb to such wretched excess as well?
A large part of the reason Jackson was slated to make a 50-show concert comeback tour was to generate more income. This world superstar may not have been technically bankrupt, but he continued to be cash-strapped. Jackson reportedly borrowed heavily against his assets.
The same week Jackson died, Ed McMahon, longtime pitchman and Johnny Carson sidekick, died at 86.
Like Jackson, McMahon had earned millions during his lifetime, yet fell into financial trouble because of his overspending.
But what leads so many people to a financial fantasyland? It’s often connected to entitlement issues.
One of the most difficult things I have to contend with when working with people in financial distress is their sense of entitlement. They think they deserve so much despite their monetary limitations.
Jackson had some mammoth entitlement issues. In interviews, he often lamented his lack of a childhood.
It seems Jackson spent his entire adulthood trying to make up for what he lost. He tried to buy back his childhood, starting with the aptly dubbed Neverland. The property had a zoo, Ferris wheel, bumper cars and other amusement-park rides that cost $4 million a year to keep up.
I’ve always asked one question when people think winning the lottery or picking the right stock or even earning a bigger paycheck will solve their problems.
“How do you go broke on $200 million?” Answer: You spend $201 million.
On my Facebook page, someone chastised me for commenting on Jackson’s financial legacy. “I think we should all grieve and leave the comments about his personal life to a minimum,” the poster noted.
Yes, we should celebrate the good that Jackson brought into this world through his music. But we should also look at his life and let it be an example that talent, fame and fortune can be wasted if you have a wanton sense of entitlement.
Comments
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cthulhu_4_president (anonymous) says…
"Entitlement can lead to financial excess"
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I expected this article to be about Madhoff.....
smitty (anonymous) says…
or medicare
cthulhu_4_president (anonymous) says…
barry: I have no idea what your post is meant to say, other than it might be a sad attempt at personal attack. I read the headline, thought the article would be about Madhoff, and was honestly surprised upon reading the content. Observing where your strange mind went with my benign comment is rather pathetic, and it's very revealing about your personality. Your partisan trolling will not work with me, sir or madame.
These forums are like a zoo, and every good zoo has a sign like this, and I think one should appear on this forum:
**don't feed the trolls**
MyName (anonymous) says…
For the record, I think Michael was a space alien unconcerned with American, or humanoid politics.
dandelion (anonymous) says…
barrypenders (Anonymous) says…
cthulhu_4_president
People should go to prison for getting things they don't deserve? How stimulus and progressive.
So it's ok for people like Madoff to cheat others, so they can get what they want? At least Michael Jackson was talented, and made some very good investments; although his mental problems even sent him over the edge, and he spent too much still, but he didn't steal people's money. Madoff is going to rot in prison, and his wife should be living in section 8 housing and on food stamps. You can't tell me she was clueless.
cthulhu_4_president (anonymous) says…
barrypenders (Anonymous) says…
"I'm sorry"
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Doubtful.