Well the citizens in Memphis win-finally. The Apollo hearsay we will see.
Well the citizens in Memphis win-finally. The Apollo hearsay we will see.
The question isn't will Apollo go through with the Sillerman-proposed expansion and overhaul or a revised version. It's more about how big will it be? Just for the record, Sillerman's proposal wasn't originally his idea. It was that of Lisa and Priscilla's that had been on the drawing board with EPE since Graceland opened. A new visitors center, museum, and hotel all on the same side as Graceland have all been on their agenda and wishlist for years. The setback was that the money just wasn't there at the time, and when it finally looked to be the economy fell which set it back even further.
As I have said on here already, EPE/CKX/Apollo was NOT about to invest millions upon millions into a run down neighborhood which has a medium crime rate that is growing until the city did its part. That was not going to happen and the city council knew it which forced their hand to make the approval. Now that the improvements have been officially approved with no more holdups or setbacks in the way, and a groundbreaking date has even been set to begin physical revitalizing, then we can now look for EPE to finally make the renovations public and not just to get free publicity like they have for the past 5 years by making false announcements to gain attention.
Sillerman ran the show-and if he wasted time on old plans that date back to 1982 that had been at EPE for 30 years-what does that tell you? I'm not sure where you got that info that plans were on the drawing boards since Graceland opened-but no one in their right minds would bother to really consider 30+year old ideas.....too many things of total importance change in that much time-technology, finance, politics, laws on zoning and structural codes etc.........no way to impliment plans drawn up in 1982 in 2005 better to start from scratch-if he wasted 10 minutes looking at 30 year old plans that seems ill advised.
When he bought he was suppose to have ideas in mind and cash-that was the rumor, that was the innuendo that was given here over and over.
Nothing has changed-except names.
It is a fact that Apollo bought CKX (at rock bottom price)-their intentions in buying CKX is debateable. They could sell their stock today and make a huge profit since the stock market is some 6000 points higher than the crash in 08 and probably 3000 points higher since they bought CKX.
The little info you can find on their intentions does not seem to imply huge renovations-more like cleaning, tightening and sprucing up etc...when they make a real announcement (not rumor, not innuendo) I will listen-then wait to see what happens. But there is IMO a 50/50 chance that they are going to find a new buyer in the future and make a profit-high finance is not always about running operations well-its about buying low and selling high. We will see...........many will remain skeptical.
But as I said I am happy that Memphis government quit dragging its feet on its responsibility to take action to make its city cleaner, safer and more modern (albeit 30 years late) that is good for the citizens.
March of 2011 New York Post story excerpt:
CKX Inc., which owns the rights to the name, image and likeness of Elvis Presley as well as the operations of Graceland, is holding off on an ambitious $250 million plan to redevelop the late singer's estate after reporting a wider fourth-quarter loss.
"Although we continue to consider the exact scope, cost, financing plan and timing of such a project, we expect that the redevelopment of Graceland, if and when pursued, would take several years and could require a substantial financial investment by the company," CKX said in a filing.
......... it appears plans to redevelop the legend’s former home are on hold. An expanded visitors center, merchandising shops and, potentially, a new hotel, will not be coming to Graceland any time soon.........................
Last year, CKX hinted that the massive project would be scaled back because of the tough economy, saying there is a "strong likelihood that the original preliminary design plans may require significant modifications or abandonment for a redesign."
Read more: http://www.nypost.com/p/news/busines...#ixzz1pDXkCqBa
This is just one year ago-CKX said it will take several years "if and when pursued" and that the original design may require significant modifications or abandonment for a redesign"
Does that not inspire skepticism???
Notice that VivaElvis was decided to be shut down FOLLOWING the sale of the company. That was no coincidence either. As I have said, CKX was already in serious financial debt and VE was only adding to it, despite making a small profit. But not enough profit, so AGM decided to shut it down to save form CKX spending more money on the then-planned overhaul of the show that was to begin in January.
Back to CKX. Once they were able to find a buyer willing to take the company private, they were then able to clear their credit debt.
Now, since that March report, AGM and CKX both published a report mentioning expansion to Graceland to begin in 2012. Below is a copy and paste from Elvisinfonet.com. This was made 2 months after CKX released their annual report.
Graceland expansion slated for 2012 / 2013: With the Apollo CKX takeover in progress the slated Graceland expansion has been mentioned. .. "In connection with the definitive merger agreement reached with CKX, Apollo has also obtained support agreements from two significant stockholders, The Promenade Trust, the sole beneficiary of which is Lisa Marie Presley and which is the Company's partner in EPE, and Robert F.X. Sillerman, the Company's largest stockholder. CKX will become a private company, controlled by an affiliate of Apollo, after completion of the offering.
Analyst Michael Altberg commented, "We believe potential volatility in the domestic television performance of American Idol, and the characteristic long-term decline of such shows, would have negative repercussions on revenue generated" noting that these factors are only partly offset by American Idol's current dominance of primetime audience ratings, and some degree of annual revenue visibility due to TV license fees and royalties/licensing revenue from its 85% ownership interest in Elvis Presley Enterprises. The Graceland tourist attraction, while popular, is slated for expansion capital expenditures in 2012 and 2013, and involves a risk of return on investment."
(News, Source;BrianQuinn/ElvisInfoNetwork) June 2011
Now, unless that has all changed, which gives me no reason to believe it has, then it went without public notice. But I have been told that AGM IS indeed behind CKX and EPE's plan to redevelop.
And the "several years" comment was about completion of the overhaul, not the beginning of it.
Like I said-when AGM actually makes some announcement of their intentions for the scope and type of capital expenditures we will know definitively what they have in mind....till then I will remain skeptical.
It is now 3 months into 2012 and know definitive answer to what they are actually going to do.
Still that idea that VE was making a small profit-but closed anyway-makes absolutely no business sense to anyone who has run a business day in and day out. Profit does not come in "huge windfall amounts" except in rare instances-it is a steady drip drip drip of profit from many sources that make the windfall. To stop a profit making venture which cost so much to develope-is just not smart business.
People still sell gum even thought the profit is a few pennies a stick-the reason is profit is profit.
In a grocery store the profit margin on most items is slim especially those used as leaders to draw in customers-but add them all up all at the end of the month and you have a tidy sum.
Like I said Sillerman and CKX are now Apollo-names have changed we will see what that means "good or bad" in the next couple years.
But until then .........you have the right to promote their case-and I have the right to be skeptical.....if and when huge things are done that are done well and promote Elvis....I will cheer them on....if they do not I will not be so cheery;)
I couldn't care less what they do as long as they don't lay a finger on Graceland or the 13 acres it sits on.
As for the capital expenditure subject. You don't raise capital funding for upkeeping and cleanup to an attraction. Those are minimum finances financed through the company's earnings. Capital funding is when mass projects require a significant amount of public and private funding such as stadiums, arenas, museums, etc. The capital that AGM and CKX is referring to would be raised through the company's assets or a bank loan, not through EPE or the citizens of Memphis.
Renovations would require capital funding, which would result in a new hotel and a new visitors center for starters, as EPE has been planning for years. Like I said, Sillerman did not create the master plan. That was put together almost 30 years ago but never materialized in time. He just went along with what Soden, Lisa and Priscilla's vision and wants were. If you do not believe me then ask one of the three I mentioned. Priscilla has even mentioned it on Sirius in the past.
And for God's sake, please stop comparing AGM to Sillerman. They are nothing at all alike. Sillerman was an individual who created a small entertainment company and jumped in head first without knowing how to swim. Apollo has been in business for over 20 years and has a remarkable track record to back them not to mention a very well off networth of over $80 billion dollars! CKX was worth less than a billion dollars at the time of the EPE purchase and is worth about $500 million today. That is like comparing an elephant to a ant. Sillerman and CKX being the ant.
As I have mentioned on here many times before (but seems to go ignored or unoticed for some reason) AGM is well known for buying up struggling financial properties for cheap value, investing millions back into them by strengthening them up, and watching them flourish under new guidance and leadership. There's no reason to think that the same won't be done for CKX and EPE. It's not like Leon Black the CEO of AGM bought the company just to buy it. There was a plan as has been stated in previous reports.
And the reason that nothing has happened since has more to do with transactions taking a full year from date of purchase. Which was May 10, 2011.
Many times in order to give the appearance of "progress" a form of "hoopla" is used giving the impression of huge things to come that are then measured in the eye of the beholders.
I do not think in the realm of the universe God is worried about the comparison of AGM and Sillerman.:D
You say there is no comparison between AGM and Sillerman-sure there is and its obvious-the scenario is the same-the hoopla is the same, the drum beat on certain quarters is the same.......the lack of definitive announcements as to the scope and size of capital expenditures in relation to renovation. Nothing wrong with healthy sketicism when things are not really as cut and dry as appearances are made to look.
Time will tell my friend if the hoopla backed by the drum beat is real or just......the appearance of progress being made to buy time for resale. You do not resell without sprucing up your product to best light.
I honestly hope that a huge $250 million renovation is what this is all about-and that is if its done properly.
Also AGM is not worth 80 billion-their total "Assets Under Management" (money they invest for others)as of 2011 was 75.2 billion according to a recent Bloomberg report. AGMs total assets (its own funds) are 5.3 billion.
Apollo Global Management the private equity firm that went public last year, said fourth-quarter profit fell 66 percent as market swings hurt its private equity holdings.
Economic net income after taxes, a measure of earnings excluding some compensation costs tied to its initial public offering, declined to $302 million, 80 cents a share, from $881.8 million, or $2.52, a year earlier, New York-based Apollo said today in a statement. The shares fell the most in almost two months.........
I am told that there's already positive feedback from around the world regarding Memphis' plan to redevelop EP Boulevard. So much so that a major restaurant and hotel chain has already expressed interest in developing between E. Brooks and Winchester, just north of Graceland. (y)
Ken, I have found out that whatever hotel goes on EPE's property (adjacent to Graceland) more than likely will NOT be owned nor operated by EPE but will be land leased to a developer in a partnership deal with the company. In other words, EPE/CKX would only invest money into Elvis-themed restaurants or eateries, gift shops and retail, and any other Elvis-themed attractions inside the hotel property. When you look at how poorly the Heartbreak Hotel has been managed and up-kept, it's a good thing that they won't be in charge of the new hotel.
Lets hope whomever the developer is can do as well with the restaurant and hotel.
I hope who ever builds the hotel/restaurant complex does just as well whether Elvis's image is related or not-because the complex would not even be considered to be built-if not for the attraction of Elvis and his Graceland home.