Bieber: Bankruptcy imminent? The drama behind his fortune

Is Justin Bieber, the once-Midas of pop, drowning in debt? Rumors swirl that a "financial collapse" forced him to sell his musical soul for $200 million. What's true and what's pure gossip in this drama that's shaking the foundations of his empire?
Whispers have turned into shouts in the halls of Hollywood: Justin Bieber, the phenomenon who conquered the world with his baby face and catchy hits, is reportedly facing a financial crisis of epic proportions. Recent reports, notably a TMZ documentary titled "What Happened to Justin Bieber?", suggest the superstar was on the verge of "financial collapse" at the end of 2022.
It's hard to believe that someone who, according to estimates, has amassed between $500 million and $1 billion throughout his career could find himself in such a predicament. However, sources cited in various publications claim that, at the time, Bieber "was bankrupt."
The contradiction is, to say the least, juicy. How does a money-making machine like Bieber get into this situation? His team, as expected, has come out to deny these reports, calling them "distorted claims from anonymous sources" and "fake news aimed at garnering clicks from individuals disappointed by the end of their relationship with Justin." But where there's a fire, there's a fire, and the details that have emerged paint a troubling picture.
His team's insistence on denying the crisis clashes with the specificity of the reports about his debts and the sale of his catalog, suggesting that while "total collapse" might be hyperbole, the financial problems are undoubtedly significant.
The most revealing move, and one that strongly fuels crisis rumors, was the sale of his entire music catalog. At the end of 2022, Bieber transferred the rights to his 290 songs, including early hits like "Baby" and his album "Justice," to the investment firm Hipgnosis Songs Capital for a reported figure of over $200 million. This transaction was billed as the largest catalog sale for an artist of his generation.
While some might argue that it was a shrewd financial move to secure long-term capital, the circumstances surrounding the sale invite skepticism. According to the TMZ documentary, Bieber "felt he had to sell the rights to his music that December" precisely because he was on the verge of "financial collapse." Furthermore, his then-manager, Scooter Braun, reportedly advised him to wait to secure tax benefits, but Bieber declined. The singer's age at the time of the sale—around 28 or 29—is unusually young; most artists consider such transactions much later in their careers, reinforcing the theory of a dire need for liquidity.
But how do you get to such a financial precipice? The answer seems to lie in a toxic combination of massive debt, an exorbitant lifestyle, and a lull in income generation. The abrupt cancellation of his "Justice" world tour in 2022 due to health issues—he was diagnosed with Ramsay Hunt Syndrome Type 2—not only meant the loss of multimillion-dollar income but also left him with a considerable debt to concert promoter AEG, estimated at between $20 and $24 million.
Added to this are the tensions and debts with his former manager Scooter Braun and the company Hybe. An external audit conducted by PricewaterhouseCoopers (PwC) reportedly confirmed Bieber's outstanding debt to Braun of approximately $8.8 million. And then there are the expenses.
There's talk of a lavish lifestyle: parties on private jets, the purchase of six luxury properties, and, to top it all off, a reported $300,000 spending spree at the exclusive Nobu restaurant during this year's Coachella festival.
This kind of waste, especially when there's no fresh income from new music or touring, is a recipe for disaster. The perfect storm had formed: contractual debt, a royal lifestyle, and a virtually closed income spigot.
Bieber's current situation is precarious, to say the least. He's reportedly now operating himself through his family office, having cut ties with key figures in his team, including Braun. A source cited by the National Enquirer summed it up succinctly: "Justin gave up his songs to save his life. He's now working without a safety net."
Their plans reportedly include returning to the stage to try to regain their financial stability. However, the lack of an experienced management team, especially at such a critical time, could significantly complicate this return.
Taking control can be an act of empowerment, but without the right compass, the road to financial recovery could be fraught with new obstacles. The teen idol who had it all now seems to be struggling to keep it all.
La Verdad Yucatán