Jackson 'had net worth of $236m', say 2007 documents

Michael Jackson claimed to have a net worth of US$236m (€168m) as of March 31, 2007, according to financial documents that shed light on the late pop star's murky finances and prodigious borrowing.

The documents also show he had little cash on hand to finance his lavish lifestyle. They offer the clearest account yet on the state of Jackson's financial empire, which is expected to become the focus of a legal battle between the singer's family and creditors.

Jackson had $567.6m (€404m) in assets, including his Neverland Ranch, his share of the Sony/ATV Music Publishing catalogue that includes the rights to songs by the Beatles, and an assortment of cars, antiques and collectibles, according to a statement of financial condition prepared by accounting firm Thompson, Cobb, Bazilio & Associates.

The report was prepared at a time when Jackson had large sums of debt coming due that had to be refinanced. The financial statement was based in large part on estimates provided by Jackson's advisers that the accounting firm said it could not verify.

The documents do not show how much money he had coming in that year or how much he was spending, which makes it hard to estimate just how cash-poor he was. Still, the statement paints a pictures of Jackson's tangled finances and the mountain of debt he left behind.

The five-page report says Jackson had debts of $331m (€235.6m), leaving him with a net worth of $236m (€168m). Highlighting his shaky financial health, the singer known for his lavish shopping sprees had just $668,215 (€475,390) in cash, according to the report, which is dated June 12, 2007.

The report puts a net value on Jackson's 50% stake in the Sony/ATV Music Publishing catalogue - his most prized assets - at $390.6m (€277.8m). The 750,000-song catalogue includes music by the Beatles, Bob Dylan, Neil Diamond, Lady GaGa and the Jonas Brothers.

Another of Jackson's prized possessions, his Neverland Ranch, is valued at $33m (€23.46m), according to the report. It says Jackson took out a $23m loan (€16.35m) against the 2,500-acre (1,000-hectare) property in the rolling hills of Santa Barbara County.

He also had $20m (€14.22m) worth of cars, antiques, collectibles and other property.

Jackson died last week of what his family has said was cardiac arrest. Medical examiners in Los Angeles are perhaps weeks away from officially determining the cause of death.

The division of Jackson's assets - and the settling of his debts - are likely to be hotly contested in court.

On Monday, four days after Jackson's death, lawyers for Katherine and Joe Jackson won temporary custody of Michael Jackson's three children and moved to become administrators of his estate.

A judge granted 79-year-old Katherine Jackson temporary guardianship of the children, who range in age from seven to 12. He also gave her control over some of her son's personal property that is now in the hands of an unnamed third party. But the judge did not immediately rule on her requests to take charge of the children's and Jackson's estates.

The swift legal moves come amid questions about whether Jackson had a valid will. If not, many potential claimants could emerge seeking a piece of his empire.

Jackson's parents claimed in documents filed in Superior Court on Monday that there was no will.

The lawyer for Michael Jackson's family said a will for the late pop star had been presented and was to be filed in court.

Attorney Londell McMillan said his clients were now aware of the will, and the late singer's advisers were looking for additional documents.

A court filing is expected.

The existence of a will, and the likely appointment of an executor, could complicate a petition by Jackson's mother Katherine to become the administrator of his estate.