15 Musicians Who Went From Riches to RAGS

The music industry glitters with success stories, but behind the platinum records and sold-out tours, a dark side lurks. Many musicians experience a meteoric rise to fame, accompanied by a sudden influx of cash.

Unfortunately, this newfound wealth can be a double-edged sword. Often, these artists lack the financial literacy to manage their newfound fortunes. Fast money, bad decisions, and the allure of a luxurious lifestyle can lead to a devastating fall from grace.

This article explores the stories of 15 musicians who succumbed to the temptations of riches, only to find themselves facing financial ruin. We’ll dig into the pitfalls that snagged them, from extravagant spending to the betrayal of trusted advisors.

Meat Loaf

Meat Loaf, born Marvin Lee Aday, was a music powerhouse. His album Bat Out of Hell became a monster hit, selling a staggering 43 million copies. But with such immense success, how did Meat Loaf end up broke?

The answer lies in a combination of misfortune and legal troubles. After losing his voice and facing lawsuits from his producer and others (over 40 in total!), Meat Loaf was forced to file for Chapter 11 bankruptcy. Thankfully, he wasn’t down for the count. In 1993, Bat Out of Hell II: Back Into Hell reignited his career.

Marvin Gaye

Marvin Gaye’s life was marked by both incredible talent and devastating struggles. Financial difficulties were just one aspect of his personal tragedies. A costly divorce left him owing significant child support and alimony, but years of lavish spending on drugs, cars, and property had already depleted his resources.

Unable to meet his financial obligations, Gaye filed for bankruptcy. He attempted to settle his ex-wife’s claims with royalties from his next album, but unfortunately, the record flopped, leaving him deeper in debt.

David Crosby

David Crosby’s solo career took a sharp turn for the worse when he succumbed to drug addiction. This fueled erratic behavior that culminated in a highly publicized arrest for a hit-and-run incident and drug/gun possession charges.

The legal troubles and negative publicity severely impacted Crosby’s music sales, leaving him with a dwindling income stream. Facing financial ruin with mounting expenses and no significant income, he was forced to file for bankruptcy.

MC Hammer

MC Hammer’s meteoric rise in the early 90s was fueled by massive album sales, but his lavish spending habits proved unsustainable. He reportedly purchased a $30 million mansion and employed a staff costing a staggering $500,000 per month.

This extravagant lifestyle quickly led to financial ruin. MC Hammer faced a mountain of debt exceeding $14 million, owing money to the IRS, lawyers, and even sports star Deion Sanders. In 1996, the music icon finally admitted defeat and filed for bankruptcy.

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Billy Joel

Billy Joel, a music legend with record-breaking sales, should have been financially secure. However, trusted advisor Frank Weber, his manager, brother-in-law, and even godparent to one of his daughters, turned out to be a wolf in sheep’s clothing.

Weber, entrusted with Joel’s finances, used his position to make a series of risky investments and bad loans. Years later, a financial audit revealed the shocking truth – Weber had been stealing from Joel all along. This betrayal of trust led Joel to sue Weber for a staggering $90 million in damages.

George Clinton

George Clinton, a legendary figure in funk music, never reaped the financial rewards his talent deserved. Shady dealings, possibly a bad contract or record label fraud, resulted in Clinton losing control of his own publishing rights.

This loss meant millions in potential royalties vanished. While Clinton claims he never filed for bankruptcy (allegedly a forged document), the situation left him fighting to regain control of his music. Even today, he actively pursues legal action and utilizes online campaigns to fund studio time and legal fees in this ongoing battle.

Leif Garrett

Leif Garrett, the heartthrob of the late 1970s, became another cautionary tale of a young star unprepared for sudden wealth. His initial burst of fame quickly faded, but his lavish lifestyle, fueled by a reported drug habit, continued.

This unsustainable combination led Garrett straight to bankruptcy court. Court documents revealed a surprising financial reality – his only reported income was a monthly allowance of $1,000 from his mother.

Willie Nelson

Willie Nelson’s financial woes stemmed not from extravagant spending or bad investments, but from a hefty tax bill. To the tune of $32 million, the IRS came knocking, claiming his accountants had mishandled his finances and neglected to pay taxes, opting instead for questionable “tax shelters”.

Facing financial ruin, Nelson got creative. He released an album, The IRS Tapes: Who’ll Buy My Memories? with the hopes of generating revenue, and even made a cameo in a Taco Bell commercial. Thankfully, his efforts paid off, and he settled his debt with the IRS in 1993.

Jerry Lee Lewis

Jerry Lee Lewis, a rock and roll pioneer who topped charts across genres, fell victim to a shocking personal scandal. His marriage to his 13-year-old second cousin in 1958 caused immediate outrage. The public backlash severely damaged his career. Record sales plummeted, and Lewis’s earning power took a crippling blow.

Despite years spent trying to rebuild his image, the damage was lasting. By the time he’d regained some credibility, Lewis was already drowning in millions of dollars of debt. Financial ruin was inevitable, leading him to file for bankruptcy in 1988.

Jerry Lee Lewis Married His 13-Year-Old Cousin. #Hollywood 🙉🙈🙊 pic.twitter.com/rkLZQrLL0Q

— Koelach (@Koelach) April 20, 2024

Mick Fleetwood

Fleetwood Mac’s drummer Mick Fleetwood should have been living a life of luxury. Their album Rumours remains a best-seller, guaranteeing a steady stream of income. However, Fleetwood apparently fell victim to the belief that the money would never end.

His lavish lifestyle, fueled by a reported $8 million cocaine habit, and questionable investments in real estate and other ventures, quickly drained his fortune. By 1984, the party was over, and Fleetwood was forced to file for bankruptcy.

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Ron Isley

Ron Isley, frontman of the legendary Isley Brothers, learned the hard way about the power of the IRS. For years, he neglected to file his taxes, amassing a staggering $5 million debt. The taxman came knocking, seizing his fancy cars and yacht to satisfy the debt. Thankfully, in 2001, a judge allowed him to keep his song copyrights through a bond deal.

Despite this close call, Isley seemingly didn’t learn his lesson. Just five years later, he found himself back in hot water. He was sentenced to over three years in prison for – you guessed it – failing to file his tax returns yet again.

Tom Petty

Tom Petty’s early success wasn’t reflected in his bank account. He felt his record label exploited him, leaving him financially empty despite two hit albums. Determined to break free from this unfair contract, Petty hatched a bold plan.

He financed the recording of his next album himself, with the ingenious twist of never releasing it. This move allowed him to declare bankruptcy in 1979, a strategic maneuver that effectively nullified his contract and paved the way for a more equitable deal with a new label.

Wayne Newton

Wayne Newton’s story may be the most complex tale of financial ruin on this list. His 2013 bankruptcy filing revealed a tangled web of legal troubles, including accusations of sexual harassment, fraud, contract breaches, and conspiracy.

Further complicating matters, Newton managed his assets through a holding company, making it difficult to untangle his true financial situation. Mounting debt from unpaid taxes and disgruntled former employees ultimately forced his hand, leading to a Chapter 11 bankruptcy filing in 2013. This wasn’t his first brush with financial woes – Newton had filed a similar bankruptcy back in 1992.

Harry Nilsson

Harry Nilsson achieved millionaire status by his 30s, but his financial security wouldn’t last. Though he enjoyed early career success, his music struggled to adapt to the changing sounds of the 1980s. To make matters worse, Nilsson was betrayed by his own financial manager, who embezzled millions from him and other clients. This left him with a mere $300 in the bank.

With debts mounting to over 70 creditors, Nilsson faced foreclosure in the 1990s. The irony of his situation wasn’t lost on him. He had once stated that financial ruin was his greatest fear, and some believe the stress may have contributed to his heart failure, which tragically took his life just months after filing for bankruptcy in 1994.

Michael Jackson

Michael Jackson’s acquisition of ATV Music, the company holding rights to the Beatles’ extensive catalogue, was a brilliant business move. It generated millions in royalties, further solidifying his already immense wealth. However, his later years were marred by mounting legal troubles related to sexual misconduct accusations, and a penchant for extravagant spending on eccentric items.

This unsustainable combination plunged Jackson into crippling debt. To avoid bankruptcy, he reportedly resorted to borrowing heavily from wealthy friends. While he was spared the public humiliation of filing for bankruptcy unlike others on this list, Jackson allegedly died with a staggering $400-500 million in debt, potentially making him the most financially troubled musician of all time.