View Full Version : Elvis Royalties Up 34.6 Percent
Brian Quinn
03-16-2010, 12:01 PM
Elvis may have left the building, but his star power is still growing.
Elvis Presley Enterprises parent company CKx Inc. released its annual report Tuesday, which showed a 34.6 percent increase in Presley royalties and licensing revenue.
The Presley business segment of CKx brought in $24.473 million in royalties and licensing revenue in 2009, compared to $18.186 million in 2008.
Attendance at Elvis’ Memphis home was also up in 2009. 542,728 people went to Graceland in 2009, a 1.2 percent increase compared to 536,196 in 2008.
Revenue from Graceland’s operations fell slightly to $36.124 million in 2009, a 1.6 percent drop compared to $36.713 million in 2008.
CKx also noted in the report that its planned, $250 million redevelopment initiative for Graceland and the surrounding area would need some retooling. It has been short on specifics for its redevelopment plan since it began acquiring land surrounding the deceased star's Whitehaven mansion.
“The company has determined that there is a strong likelihood that the original preliminary design plans may require significant modifications or abandonment for a redesign due to the current economic conditions and a lack of certainty as to exact scope, cost, financing plan and timing of this project,” according to the report.
Another wrinkle in the redevelopment effort is the recently terminated relationship between CKx and FX Real Estate and Entertainment Inc. The two companies entered into an agreement in 2007 that would grant FXRE the exclusive right to own, develop and operate Elvis-themed hotels, casinos and other real estate-based projects. The relationship officially dissolved earlier this month when FXRE failed to make its annual $10 million guaranteed royalty payment, according to CKx’s report.
FXRE originally was set to develop one or more hotels at Graceland as a piece of the redevelopment project.
CKx wrote off $900,000 in deferred costs related to preliminary design work for the redevelopment, but also said it “remains committed to the Graceland redevelopment and will continue to pursue opportunities on its own or with third parties.”
CKx, through a partnership with Cirque du Soleil, recently opened a permanent live theatrical show based on the life, times and music of Elvis. The show, presented at the new Aria Resort and Casino on the Las Vegas strip, opened performances in February.
New York-based CKx (NYSE: CKXE) maintains an 85 percent ownership in Elvis Presley Enterprises.
Information from the Memphis Business Journal.
Brian :D
debtdbruno
03-16-2010, 12:08 PM
Hail The King:notworthy:notworthy:notworthy:notworthy:notwo rthy
Elvis may have left the building, but his star power is still growing.
Elvis Presley Enterprises parent company CKx Inc. released its annual report Tuesday, which showed a 34.6 percent increase in Presley royalties and licensing revenue.
The Presley business segment of CKx brought in $24.473 million in royalties and licensing revenue in 2009, compared to $18.186 million in 2008.
Attendance at Elvis’ Memphis home was also up in 2009. 542,728 people went to Graceland in 2009, a 1.2 percent increase compared to 536,196 in 2008.
Revenue from Graceland’s operations fell slightly to $36.124 million in 2009, a 1.6 percent drop compared to $36.713 million in 2008.
CKx also noted in the report that its planned, $250 million redevelopment initiative for Graceland and the surrounding area would need some retooling. It has been short on specifics for its redevelopment plan since it began acquiring land surrounding the deceased star's Whitehaven mansion.
“The company has determined that there is a strong likelihood that the original preliminary design plans may require significant modifications or abandonment for a redesign due to the current economic conditions and a lack of certainty as to exact scope, cost, financing plan and timing of this project,” according to the report.
Another wrinkle in the redevelopment effort is the recently terminated relationship between CKx and FX Real Estate and Entertainment Inc. The two companies entered into an agreement in 2007 that would grant FXRE the exclusive right to own, develop and operate Elvis-themed hotels, casinos and other real estate-based projects. The relationship officially dissolved earlier this month when FXRE failed to make its annual $10 million guaranteed royalty payment, according to CKx’s report.
FXRE originally was set to develop one or more hotels at Graceland as a piece of the redevelopment project.
CKx wrote off $900,000 in deferred costs related to preliminary design work for the redevelopment, but also said it “remains committed to the Graceland redevelopment and will continue to pursue opportunities on its own or with third parties.”
CKx, through a partnership with Cirque du Soleil, recently opened a permanent live theatrical show based on the life, times and music of Elvis. The show, presented at the new Aria Resort and Casino on the Las Vegas strip, opened performances in February.
New York-based CKx (NYSE: CKXE) maintains an 85 percent ownership in Elvis Presley Enterprises.
Information from the Memphis Business Journal.
Brian :D
I think this shows the lack of planning from the onset of the deal to acquire the 85%-its almost like they can not figure out what direction they want to take off in, maybe the "think tank" is split on the direction...but to be talking about "significant modifications or abandonment...." after 5 years of "planning" seems unreal.
The income is still coming in, attendance is up, 34.6% increase in royalties and they need to "rethink"???
Diane
03-17-2010, 08:58 AM
I just wish Elvis was still here to benefit from all this since he was the one who worked so hard getting it all started in the first place......:'(
Diane
monk37
03-17-2010, 09:12 AM
Elvis has always suffered from poor planning
it's appalling that it continues so long after his death
Brian Quinn
03-17-2010, 10:36 AM
Elvis has always suffered from poor planning
it's appalling that it continues so long after his death
It must be remembered that without Priscilla Presley, Graceland would not be in the position it is today. Elvis died leaving around 6 million dollars which is not very much. However, Priscilla and even more so Lisa Marie, are not really shrewd business people and therefore they made the decision a few years back to allow Bob Sillerman of CKXE to undertake new projects and ameliorate the area surrounding Graceland. Unfortunately for Bob the world economic market took a serious downturn just as he was about to undertake such projects. Luckily he has managed to hang on to one project that we now know as 'Viva Elvis' in Las Vegas. I am sure that in the next couple of years, as the economic climate improves, Bob Sillerman will find the extra coffers to continue his projects to benefit the Elvis legacy. We certainly hope so.
Brian
It must be remembered that without Priscilla Presley, Graceland would not be in the position it is today. Elvis died leaving around 6 million dollars which is not very much. However, Priscilla and even more so Lisa Marie, are not really shrewd business people and therefore they made the decision a few years back to allow Bob Sillerman of CKXE to undertake new projects and ameliorate the area surrounding Graceland. Unfortunately for Bob the world economic market took a serious downturn just as he was about to undertake such projects. Luckily he has managed to hang on to one project that we now know as 'Viva Elvis' in Las Vegas. I am sure that in the next couple of years, as the economic climate improves, Bob Sillerman will find the extra coffers to continue his projects to benefit the Elvis legacy. We certainly hope so.
Brian
Pardon me my friend-once again this seems lile "Sillerman to the rescue" and that was most definitely not the case.
It was nearly 25 years that the probate court judge in charge of the trust for Lisa, Priscilla and the other executors built EPE into a major money making operation (good or bad depending on how you view the situation) and they had no help at all from Sillerman. If it was not already a hugely successful operation he would not have decided to become involved at all.;)
He paid over $100 million to Lisa for the "privillege to become involved" in the Elvis legacy.......how he handles that responsibility we will see.
vivaelvis
03-17-2010, 11:44 AM
I personally feel that Graceland will not be the future money maker for Elvis and EPE as it has been all these years. Las Vegas will eventually take over. The show 'Viva Elvis' is already taking off and bringing in revenue and because of it was why CKX saw a major increase in their 4th quarter earnings from $34 milltion up to $79 million. There's still plans for a hi tech Elvis museum in Las Vegas across from 'CityCenter' too. I wouldn't be surprised to see it built and opened for business before they even break ground on the Graceland expansion, that now looks to be redesigned. Sadly I think it will be 2 or 3 years if not longer before we see anything significant happen to the Graceland area.
Brian Quinn
03-17-2010, 12:20 PM
Pardon me my friend-once again this seems lile "Sillerman to the rescue" and that was most definitely not the case.
It was nearly 25 years that the probate court judge in charge of the trust for Lisa, Priscilla and the other executors built EPE into a major money making operation (good or bad depending on how you view the situation) and they had no help at all from Sillerman. If it was not already a hugely successful operation he would not have decided to become involved at all.;)
He paid over $100 million to Lisa for the "privillege to become involved" in the Elvis legacy.......how he handles that responsibility we will see.
I did not say that it was Sillerman 'to the rescue'. He was obviously chosen to undertake new projects because of his previously successful track record. Both Lisa and Priscilla have stated that they could not undertake the projects they wanted to. Of course, being a shrewd businessman, Sillerman recognised the potential in the Elvis Presley business and no doubt relished the challenge. As I stated previously it was most unfortunate that the economoc climate came along when it did. He must be a very frustrated man. Personally I have confidence in him and I hope for all Elvis fans he proves to be beneficial to Elvis' legacy in the long run.
Brian
Brian Quinn
03-17-2010, 12:37 PM
I personally feel that Graceland will not be the future money maker for Elvis and EPE as it has been all these years. Las Vegas will eventually take over. The show 'Viva Elvis' is already taking off and bringing in revenue and because of it was why CKX saw a major increase in their 4th quarter earnings from $34 milltion up to $79 million. There's still plans for a hi tech Elvis museum in Las Vegas across from 'CityCenter' too. I wouldn't be surprised to see it built and opened for business before they even break ground on the Graceland expansion, that now looks to be redesigned. Sadly I think it will be 2 or 3 years if not longer before we see anything significant happen to the Graceland area.
Viva Elvis,
Unfortunately for Elvis' Legacy, Graceland is not situated in the best of districts. In fact it is one of the worst crime ridden areas in the U.S.A. I believe EPE and Bob Sillerman are well aware of this and that is why they are trying to do something about it with the involvement of the local Mayor and councillors. In the short term I believe they have an uphill struggle. Therefore to some degree, I tend to agree with you about the importance of Las Vegas for the future of Elvis' legacy. People from all over the world have easy access to Vegas and apart from Elvis, there is so much choice to cater for all tastes. Memphis, on the other hand, has not got the infrastructure of Vegas and nowhere near the amount of interesting places to visit. The 'Viva Elvis' show is proving to be a great draw in Vegas and the CD therefrom, when released in September, should prove to be a worldwide No.1. The 'Elvis In Concert' tour featuring Elvis' original musicians/singers is also a great worldwide attraction and this concept must not be allowed to die. I'm sure we all hope that the future is good for Elvis - he certainly deserves it for all he gave to us when he was alive.
Brian
Elvis may have left the building, but his star power is still growing.
Elvis Presley Enterprises parent company CKx Inc. released its annual report Tuesday, which showed a 34.6 percent increase in Presley royalties and licensing revenue.
The Presley business segment of CKx brought in $24.473 million in royalties and licensing revenue in 2009, compared to $18.186 million in 2008.
Attendance at Elvis’ Memphis home was also up in 2009. 542,728 people went to Graceland in 2009, a 1.2 percent increase compared to 536,196 in 2008.
Revenue from Graceland’s operations fell slightly to $36.124 million in 2009, a 1.6 percent drop compared to $36.713 million in 2008.
CKx also noted in the report that its planned, $250 million redevelopment initiative for Graceland and the surrounding area would need some retooling. It has been short on specifics for its redevelopment plan since it began acquiring land surrounding the deceased star's Whitehaven mansion.
“The company has determined that there is a strong likelihood that the original preliminary design plans may require significant modifications or abandonment for a redesign due to the current economic conditions and a lack of certainty as to exact scope, cost, financing plan and timing of this project,” according to the report.
Another wrinkle in the redevelopment effort is the terminated relationship between CKx and FX Real Estate and Entertainment Inc. The two companies entered into an agreement in 2007 that would grant FXRE the exclusive right to own, develop and operate Elvis-themed hotels, casinos and other real estate-based projects. The relationship officially dissolved in March 2009 when FXRE failed to make its annual $10 million guaranteed royalty payment, according to CKx’s report.
FXRE originally was set to develop one or more hotels at Graceland as a piece of the redevelopment project.
CKx wrote off $900,000 in deferred costs related to preliminary design work for the redevelopment, but also said it “remains committed to the Graceland redevelopment and will continue to pursue opportunities on its own or with third parties.”
CKx, through a partnership with Cirque du Soleil, recently opened a permanent live theatrical show based on the life, times and music of Elvis. The show, presented at the new Aria Resort and Casino on the Las Vegas strip, opened performances in February.
New York-based CKx (NYSE: CKXE) maintains an 85 percent ownership in Elvis Presley Enterprises.
jdonahoe@bizjournals.com | (901) 259-1728
Brian Quinn
03-18-2010, 04:08 AM
Elvis may have left the building, but his star power is still growing.
Elvis Presley Enterprises parent company CKx Inc. released its annual report Tuesday, which showed a 34.6 percent increase in Presley royalties and licensing revenue.
The Presley business segment of CKx brought in $24.473 million in royalties and licensing revenue in 2009, compared to $18.186 million in 2008.
Attendance at Elvis’ Memphis home was also up in 2009. 542,728 people went to Graceland in 2009, a 1.2 percent increase compared to 536,196 in 2008.
Revenue from Graceland’s operations fell slightly to $36.124 million in 2009, a 1.6 percent drop compared to $36.713 million in 2008.
CKx also noted in the report that its planned, $250 million redevelopment initiative for Graceland and the surrounding area would need some retooling. It has been short on specifics for its redevelopment plan since it began acquiring land surrounding the deceased star's Whitehaven mansion.
“The company has determined that there is a strong likelihood that the original preliminary design plans may require significant modifications or abandonment for a redesign due to the current economic conditions and a lack of certainty as to exact scope, cost, financing plan and timing of this project,” according to the report.
Another wrinkle in the redevelopment effort is the terminated relationship between CKx and FX Real Estate and Entertainment Inc. The two companies entered into an agreement in 2007 that would grant FXRE the exclusive right to own, develop and operate Elvis-themed hotels, casinos and other real estate-based projects. The relationship officially dissolved in March 2009 when FXRE failed to make its annual $10 million guaranteed royalty payment, according to CKx’s report.
FXRE originally was set to develop one or more hotels at Graceland as a piece of the redevelopment project.
CKx wrote off $900,000 in deferred costs related to preliminary design work for the redevelopment, but also said it “remains committed to the Graceland redevelopment and will continue to pursue opportunities on its own or with third parties.”
CKx, through a partnership with Cirque du Soleil, recently opened a permanent live theatrical show based on the life, times and music of Elvis. The show, presented at the new Aria Resort and Casino on the Las Vegas strip, opened performances in February.
New York-based CKx (NYSE: CKXE) maintains an 85 percent ownership in Elvis Presley Enterprises.
jdonahoe@bizjournals.com | (901) 259-1728
Sorry, but there is a thread on this topic already posted.
Brian
I did not say that it was Sillerman 'to the rescue'. He was obviously chosen to undertake new projects because of his previously successful track record. Both Lisa and Priscilla have stated that they could not undertake the projects they wanted to. Of course, being a shrewd businessman, Sillerman recognised the potential in the Elvis Presley business and no doubt relished the challenge. As I stated previously it was most unfortunate that the economoc climate came along when it did. He must be a very frustrated man. Personally I have confidence in him and I hope for all Elvis fans he proves to be beneficial to Elvis' legacy in the long run.
Brian
No you did not, but in the way you phrased your post....it did seem to say that under Priscilla, the other trustees and Lisa-things were somehow mismanaged or not successful, and you and I both know that was not the case. It thrived every year that is has been opened.
Sillerman was "chosen" because he came up with a 100 million up front plus stock, left the ownership of Graceland and her fathers personal property in Lisas hands and Lisa got has 15% ownership in the new entity....... So far..... the better end of this deal negotiated between Sillermans and Lisa people, has been Lisa's. It sounds to me like EPE had some pretty smart people involved.
Since after 5 years later no plans are fully in place as (this story shows) and since some of his other plans fell thru and he has had problems (including the "last years" economy) so far Lisa is the one who made the better deal. That may change down the road if and when Sillerman finally makes his definite plans known.
Getting off to a rough start is not always the predictor of the future-and as long as the likeness of Elvis Presley, and the charisma is involved I am confident in success-because it has always been so, before EPE, before Sillerman.
Viva Elvis,
Unfortunately for Elvis' Legacy, Graceland is not situated in the best of districts. In fact it is one of the worst crime ridden areas in the U.S.A. I believe EPE and Bob Sillerman are well aware of this and that is why they are trying to do something about it with the involvement of the local Mayor and councillors. In the short term I believe they have an uphill struggle. Therefore to some degree, I tend to agree with you about the importance of Las Vegas for the future of Elvis' legacy. People from all over the world have easy access to Vegas and apart from Elvis, there is so much choice to cater for all tastes. Memphis, on the other hand, has not got the infrastructure of Vegas and nowhere near the amount of interesting places to visit. The 'Viva Elvis' show is proving to be a great draw in Vegas and the CD therefrom, when released in September, should prove to be a worldwide No.1. The 'Elvis In Concert' tour featuring Elvis' original musicians/singers is also a great worldwide attraction and this concept must not be allowed to die. I'm sure we all hope that the future is good for Elvis - he certainly deserves it for all he gave to us when he was alive.
Brian
Someone has been pointing this out for the last 10 years, and yet attendance is up and goes up the majority of the years since Graceland opened.
Indeed my daughter went there last fall and she said she felt very safe and secure at Graceland she observed security around the grounds and she felt safe on Beale Street. She was aware of the reputation and did not go where into the neighborhoods around Graceland (she said why would I?).
So as long as the grounds of Graceland are safe people will always come to visit IMO
Jungleroom76
03-18-2010, 01:56 PM
He paid over $100 million to Lisa for the "privillege to become involved" in the Elvis legacy.......how he handles that responsibility we will see.
Not very impressively so far unfortunately.... (n)
TCB!
Mike
Jungleroom76
03-18-2010, 01:59 PM
Elvis has always suffered from poor planning
it's appalling that it continues so long after his death
Sadly that is SO true monk37... :'(
During his lifetime, he suffered with the inadequate career planning of The Colonel (most notably in the later years), and well after his passing, he continues to suffer with an investment group who has no idea of what direction to take his legacy in... :hmm:
Certainly not what Elvis deserves THAT is for sure! (n)
TCB!
Mike
Jungleroom76
03-18-2010, 02:00 PM
I think this shows the lack of planning from the onset of the deal to acquire the 85%-its almost like they can not figure out what direction they want to take off in, maybe the "think tank" is split on the direction...but to be talking about "significant modifications or abandonment...." after 5 years of "planning" seems unreal.
The income is still coming in, attendance is up, 34.6% increase in royalties and they need to "rethink"???
Well said Ken!!! ;)
TCB!
Mike
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