How star's mega millions vanished

HIS unrivalled musical talent brought Michael Jackson riches beyond anybody's wildest dreams - but in the end, the King of Pop died facing financial ruin.

Despite owning assets worth more than £650 MILLION, he was battling a huge mountain of debt which peaked at a mind-boggling £340 MILLION.

His fall from the dizzying heights of megastardom was so severe that the Billie Jean singer needed a £120 MILLION loan from Bank Of America.

On top of this were mounting legal costs to fight several lawsuits from former business associates.

In 2005, it was reported that his cash reserves ran so low that Jackson even worried about paying his ELECTRICITY BILL - a very real sign that the star's spark had gone.

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But Jacko's musical legacy will live far beyond his death - his legendary status is sure to generate millions year-on-year in record sales, publishing and radio play royalties.

As a once-prolific musician, Jackson crossed boundaries to become a worldwide phenomenon fusing Motown with rock - and creating a stage god for millions of fans across the world.

Assessing that legacy last night, British music mogul Pete Waterman, 62, said: "Jacko became a super star the likes of which had never been seen before.

"Even Elvis and The Beatles were not as universally loved as this man.

Even Elvis and The Beatles were not as universally loved as this man

"Kids were moonwalking to his records in places like Zimbabwe. He was the first global superstar and there will never be another one.

"Thriller sold 109 MILLLION albums, which is £1 BILLION of business when people still had to go to a record shop to get it.

"I don't think you will ever see the shows he did on that scale again.

"At a birthday, or even a wake, if you put Michael Jackson on everybody dances - that's unbelievable.

"His solo music was incredibly catchy and boy, did those records have rhythm."

After more than four decades in showbusiness, Jacko had accumulated assets worth an estimated £650 million.

His own records brought in hundreds of millions of pounds over the years.

He broke a world record in 1991 when he renewed his contract with Sony for £40 million.

In 1993 he sold the rights to his Dangerous World Tour to HBO Television for £10million.

But several friendships that turned sour over the years cost him a fortune in settlements.

BROKEN: Star's amusement park at his £10m Neverland ranch

An out-of-court settlement for the child molestation case involving 13-year-old Jordy Chandler in 1994 cost him £13 million.

He was also rumoured to be paying ex-wife and mother of two of his kids Debbie Rowe £450,000 a year and in 2006 he was sued for £4 million by Prince Abdullah of Bahrain for allegedly breaking a deal for a new record and a Broadway show.

Yet he thought nothing of spending hundreds of thousands of dollars on a single shopping trip.

Friends told how at one time he would flick through catalogues - buying EVERY single item. Or blow £100,000 on a shopping trip to Harrods in London.

In 1988, the free-spending Moonwalker purchased his controversial Neverland ranch for £10 million.

He spent wildly on his new project, creating the full-size amusement park with 16 rides, including bumper cars and a Ferris Wheel.

But the ranch, which was at the centre of his child abuse scandals, ended up costing him more than £3 million a year just to maintain.

Despite his growing debts, Jackson's estate includes hundreds of thousands of lucrative recordings by other artists - including 267 songs he bought in 1985, mostly written by John Lennon and Paul McCartney for The Beatles.

The pop singer and Sony Music operated a joint venture that either owns or administers the copyrights to about 750,000 compositions by veteran stars like Bob Dylan, Neil Diamond and newcomers Taylor Swift and The Jonas Brothers.

Legal fees, lawsuits, divorce and expensive tastes meant that Jacko became forced to merge some of his assets and take out enormous loans.

AUCTION: Jackson sold glove and other treasures

In 1995, he sold half of the archive back to Sony. He then used the remaining 50 per cent stake to get a £120 million loan from the Bank of America in 2001.

Industry analysts estimate that Sony/ATV Music Publishing is worth at least $1 billion - a staggering amount considering Jackson's initial investment was $47.5 million in 1985.

Music publishing is considered a licence to print money and, unsurprisingly, theses royalties will be the jewel in the crown of Jackson's debt-ridden empire. Financially, it is clear that the star was a mess and in big trouble - it's believed this is why he was forced to take on the gruelling 50 gigs in London this summer.

In the end, Jackson was forced to sell many of his most prized possessions at auction in order to raise much-needed cash whilst living in a rented house.

The upmarket garage sale included the world-famous sparkling white glove that covered the gifted star's hand whilst performing Billie Jean - a show-stopper that spawned a million imitations. A source close to Jackson said: "It's so sad because whilst he was alive he could never earn as much as he wanted to spend."

A clearer picture of the megastars' crumbling finances will emerge during the administration period of his estate that experts reckon will last about 18 months.

Jackson's executors will evaluate his assets, file the estate tax return and invite creditors to submit invoices.

But Pete Waterman - who has produced hits by Kylie Minogue and met Jackson several times - believes MJ's musical heritage is much clearer.

He said: "If God gave anyone more talent than they deserved it was Michael Jackson - and by Christ did the poor lad have to live with it. But boy did he deliver.

"His problem was that he couldn't shake off where he came from, and never received the acceptance he wanted. When he broke in the early 1970s we didn't quite understand in Great Britain the situation in America. What we had grown up with in the 1950s was early rock 'n' roll and The Beatles took over in the 1960s. None of us understood the global market because it was unavailable.

"We also didn't get that Michael was a victim of black radio and white radio - it was that dichotomy that ruined his life.

"He was never accepted as a black artist in the way he always wanted to be and his Motown record label wanted him to be.

"It was very interesting when he was announced dead, and his brother Jermaine called him the King of Pop. That was a way of saying he was accepted by the pop community and not the black community. That's a very strong statement."

Explaining Jackson's rise to worldwide fame, Waterman went on: "Look at the Jackson 5's ABC - that was an R&B record brought predominantly by white people.

"Black people were leaving behind Motown and ignoring it in their droves because it was seen as a predominantly white label making disposable, uncreative, music.

"White records were not being played on black radio and vice versa. Yet over here when ABC came out everybody played it.

"I was working as a DJ in Coventry at the time and I played the record four times in one set and the entire place went wild.

"Soon Jackson 5 posters were hanging on every kid's bedroom wall. It appealed to the working classes - it was about emotions, and love.

"It never ended for Michael - he carried on making crossover music - but he never felt respected.

If God gave anyone more talent than they deserved it was Michael Jackson - but boy did he deliver

"Without question he was black, but his records were bought by white people and that screwed him up more than anyone realised.

"He never recovered from the lack of acceptance of him as a black artist and there's no question that's why he tried to change his appearance."

It was only when Jackson went to CBS Records that the rising star realised that he could take over the world of music.

Waterman added: "It was a completely different life for him at CBS - it was what he wanted as he prepared to be a global superstar.

"He had the greatest talent the world had ever seen. But that talent hooked to the biggest entertainment machine in America was lethal for the poor lad. He was cocooned in a way no other music stars were."

Ultimately, according to Pete, Jackson simply became too big to survive in the real world.

He said: "Michael was dedicated to being the biggest star ever, but with that comes at a price - you lose touch with the real world.

"At the height of his career he was making over $1 MILLION A MINUTE. If you're making that kind of money for a record company they pressure you to produce. And I think he lost touch with reality.

"Ultimately, that cost him his life because he never relaxed. His life was ruined by fame. I think he wanted to do these comeback shows - in fact, I genuinely think he thought he could do it.

"Yes, it was going to pay off a lot of debt which would have taken pressure off him. But he also longed for acceptance, he loved the adulation.

"Either way, he is the greatest entertainer there has ever been or ever will be. He will be sadly missed."

Click here for all Michael Jackson death and tribute stories

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