Inside M.C. Hammer’s $30 MIllion Mansion Renovation That Caused Him To Go Bankrupt

Highlights

• M.C. Hammer’s album “Please Hammer Don’t Hurt ‘Em” was the first hip-hop album to be certified Diamond.
• Hammer spent $30 million renovating his California mansion.
• The mansion was eventually sold for $5.3 million.

M.C. Hammer is ingrained in pop culture. People born decades after Hammer’s prime are still able to recognize his dance moves, outfits and iconic 1990 single “U Can’t Touch This.” The album that accompanied the single, “Please Hammer Don’t Hurt ‘Em”, was the first by a hip-hop musician to be certified Diamond by the RIAA for sales of over ten million. Not bad, considering Hammer only spent $10K to make it.

M.C. Hammer became a multimillionaire off the strength of his music, and while his icon status has endured, his wealth has not. The hip-hop artist filed for bankruptcy in 1996, revealing that he’d spent most of his earnings on luxurious items and a staff of nearly 200 people. The real money pit, though, was M.C. Hammer’s mansion.

M.C. Hammer Blew More Than Half Of His $70 Million Net Worth On Renovating His California Mansion In The ’90s

M.C. Hammer spent $12 million on a lavish property in Fremont, California, but it turned out to be the tip of the iceberg, financially speaking. The hip-hop artist would sink another $30 million into the mansion between the years 1991 and 1996, which, according to the Mirror, accounted for more than half of his estimated $70 million net worth.

Hammer reportedly tore down the structure that had already been built on the property and commissioned a new one to be made in its place. He installed gold-plated front gates that were emblazoned with his famous catchphrase, in addition to:

• A 17-car garage
• A bowling alley
• A baseball triangle
• A recording studio
• Multiple tennis courts
• 2 swimming pools

One of the pools was specially designed to resemble Hammer’s signature baggy pants. The hip-hop artist explained his “vacation” vision for the mansion during a 1997 interview with SF Gate:

“When I moved in here, it felt more like I was still on vacation. In my world travels, I stayed at the finest hotels. I’ve seen the best. All the floors are marble. My wife flew to Italy and picked it out of the mines. They cut it out of the mountain … but I’ve only used the marble steam room in my bathroom once and I’ve probably never even sat on the couch in the living room.”

The aforementioned marble cost $2 million alone. That’s not even getting into the numerous statues of M.C. Hammer placed around the mansion, or the gold hot tub that was installed in his bedroom.

It’s difficult to say whether the renovations would have continued had Hammer been given the chance to do more, but it’s easy to draw a connection between the extreme rennovation expenses and the hip-hop artist’s decision to file for Chapter 11 Bankruptcy in April 1996.

M.C. Hammer claimed $9.6 million in assets and $13.7 million in debts, according to Time Magazine. The mansion he’d spent years working on was one of the first things to go.

M.C. Hammer Was Forced To Sell The Mansion For $6.7 Million Less Than He Originally Paid In 1997

Hammer’s monetary fall from grace is one of the most famous in all of the celebrity culture, and part of this has to do with the fact that he owned the mistakes he made along the way. The aforementioned SF Gate interview with Hammer was conducted in the infamous Fremont mansion, while he was waiting for it to be sold off to the highest bidder.

When asked why he decided to spend $30 million on perfecting his home, Hammer said:

“I come from humble beginnings. I did it because I could. Not that I had to live there. But I could. I’ve had six fun years living here. But it represents the turmoil I went through the past 2-1/4 years. It reminds me of the trials and tribulations. Yeah, I’m relieved and joyous that we’re going. But at the same time, I’m sad.”

The Los Angeles Times announced that M.C. Hammer sold his mansion for $5.3 million on August 31, 1997. The outlet pointed out that the final price was significantly lower than the $9.4 million that Assessor’s records had it valued at, as well as the $6.8 million that M.C. Hammer asked for in his original listing price.

Unfortunately, given the hip-hop artist’s financial troubles at the time, he was forced to accept the lower offer. The $5.3 million sale was a staggering $6.7 million less than Hammer originally paid for the mansion, which, of course, doesn’t even begin to account for the millions he spent on rennovations. He told the LA Times that he was happy to see the mansion go, as it marked a “new beginning” for his life.

The mansion, which has since been dubbed the “Hammer Time” mansion by the media, sold again for $5.4 million in 2012.

M.C. Hammer Was Forced To Pay $700K In Property And State Taxes Even After The Mansion Was Sold

The financial woes caused by the “Hammer Time” mansion did not stop after it was sold. M.C. Hammer was evidently forgetful when it came to paying the state and property taxes during his many years of renovations, and was hit with outstanding fees by the IRS in 2015.

These fees, which totaled $798,033.48, were broken down into two separate IRS debts:

• $500,000 in state taxes
• $200,000 in property taxes

Hammer filed a claim in which he requested the debt be forgiven, but the appeals court ruled in favor of the IRS, believing that the organization was free of misconduct in the handling of Hammer’s 1996 bankruptcy. The artist issued a statement to Bossip claiming that he was being taken advantage of:

“To come back after the fact and assert claims after millions of dollars have been paid out by creditors from which these claims have been paid in full, is the misconduct the USA committed.”

Despite the ongoing tax troubles, Hammer has been able to rebuild some of his fortune. Celebrity Net Worth currently lists his worth at $2 million, which he’s been able to accrue through touring, television appearances, and advertisement deals.

He even mocked his mansion issues in a 2005 commercial for Nationwide Insurance.

Hammer lives in a much, much more modest setup than before. According to Urban Splatter, the hip-hop artist currently lives in a three-bedroom, two-bathroom home in Tracy, California. He lives with his wife and two children and reportedly spent $1.16 million on the home.

During a 2010 appearance on Oprah, M.C. Hammer told the host that he didn’t regret any of the decisions he’d made in his career. “I wouldn’t change one thing,” he said. “I really believe in the butterfly effect. Meaning that if I change one thing, everything else changes. I lose the kids I have now. So I’m very happy with my decision.”

Source: NewsFinale