WATCH: Hugh Hefner may not have been as rich as we thought
Share this article:
CAPE TOWN - Notorious Playboy magazine founder, Hugh Hefner had a shockingly low net worth upon his death on September, 27, reports Fortune.
The 91-year old's fortune became the talk of the town, with everyone wondering who would inherit his million dollar estate.
Fortune has found that the Playboy mogul had, in fact, no tangible assets or real estate.
It has been reported that Hefner allegedly sold the Playboy mansion for R1.3bn to his next-door neighbour.
However, it is likely that Hefner did not benefit from the sale as he owned no property by then.
In 2011, private equity firm Rizvi Traverse Management, in partnership with Hefner, bought Hefner’s company Playboy Enterprises (which in turn owns Playboy) and took it private for about R2.9bn.
Hefner then gave up all of his shares to Rizvi in exchange for a minority stake in the new company and a couple of simple promises:
Hefner would receive an annual salary of R13.6m and he would be allowed to live out the rest of his life in the Playboy Mansion for rent of a basic R1 362 a year.
The merger agreements then rendered Hefner an employee of the media company he founded.
Rizvi claimed the rights to the Playboy brand and iconic bunny head logo, license to Hefner's name and signature.
The Playboy trademarks account for more than R13.6bn yet it does not contribute to Hefner's fortune.
"In my wildest dreams, I could not have imagined a sweeter life."— Hugh Hefner (@hughhefner) September 29, 2017
- Hugh M. Hefner
1926 - 2017 pic.twitter.com/GG5zlefwKG
Hefner's financials further spiraled out of control according to divorce documents eight years ago (2009).
- R626 672 was spent per month on food, entertainment, and health care.
- R272 492 was spent per month on alimony
- Nearly R735 658 in monthly rent and household expenses
- Hefner donated R3.4m each year to his charity, the Hugh M. Hefner Foundation which took another R27.2m from his net worth annually in 2009.
This is a far cry from the initial R108 986, that Hugh Hefner started Playboy with back in 1953.
Additionally, Hefner purchased the crypt at the Westwood Village Memorial Park in Los Angeles in 1992 for R1.22m, reported Independent Media.
The Westwood Village Memorial Park is where American actress and model, Marilyn Monroe is buried.
He is reported to be buried alongside Monroe.
Hefner revealed the reason for buying the plot in a 2000 publication of the Playboy magazine.
It was his comedian friend Jay Leno who convinced him to buy the plot.
Hefner wanted to be close to the 1950's actress and also has other friends buried there, including jazz musician Buddy Rich and Canadian Playboy Playmate, Dorothy Stratten.
- BUSINESS REPORT