Graceland in trouble?

[vivaelvis]

It's not looking good at all for CKX and their shareholders. They have been given a warning that their value is dropping to a dangerous level. This could and would affect Graceland tours and the EPE business in a very negative way. If it keeps on losing money then EPE may be forced to file for bankruptcy and if that happens that means the government can take over Graceland. Not trying to scare anyone but it's just something that could happen more than one would think. EPE just recently announced that ticket sales are down at Graceland. Sign of the times?

[john carpenter]

A sign of the times...I hate to think Graceland closing down

[Tigerman1975]

From what I understood, EPE was owned by CKX and that Lisa Marie Presley retained ownership over Graceland and the 13 or so acres that it sits on. So even if Heartbreak Hotel, The shopping center and the merchandising went kaput, Graceland would still be fine. CKX bought the rights to EPE from her for something like one hundred million dollars, w/ "X" amount of it in shares in CKX. So even if the tours stop, she has enough money to keep the Mansion and its upkeep afloat, imo.

[Brian Quinn]

Who is to say that Lisa Marie will not sell her stake in Graceland? I would say that is the next logical step, particularly if the attendance drops drastically over the next couple of years. I feel that she will sell out to a Management Company, possibly CKX. However, this is all just speculation and hopefully attendance will start to pick up again soon. I sincerely hope so.

Brian

[Tigerman1975]

I dont know. I just dont see her selling the actual Graceland Estate. Its hers, not CKX's. If tours closed down, she would still own the property itself. Just not the rights to Elvis' name and image as far as marketing goes.

[Vegas69]

I agree with Tigerman say she own Graceland but while back talk she was giving offer to Sillerman to buy but few week ago I read on google news that Sillerman company took offer to buy or sell to someone else off table. Not sure what that mean but whatever happen I am with Tigerman Graceland stay safe because Sillerman did not take up offer to buy Graceland even if that rumor true but I hear from Patsy Adnerson that.

[Jungleroom76]

Definitely some distressing, although not unexpected news. Let's just hope this is a product of the economic downturn in that people simply don't have the extra money to spend on vacations and trips, etc. right now and that once the economy picks back up, attendance at Graceland will rebound!

TCB!
Mike

[Raised on Rock]

I don't think Graceland is closing in a near future. I believe it will remain an atraction for a long run. Yet, even if we think the worst scenario, and as some suggested, the goberment took over it, it might still keep it as a national landmark or something like that, and as that, will remain as an open museum and will be visited in the year 3000 lol, well if the world doesn't end in 2012.

Now, If CKX go completely the hell, some other company might buy EPE and even for the best isn't it?

[lightcloud]

It seems incredible that Elvis has been the richest dead person for so many years, only recently trumped by Michael, yet EPE are suffering financial difficulties...where is all that money going!!

[Tigerman1975]

Thats what I'm saying. EPE/CKX owns the rights for merchandising and marketing(use of his name and likeness). If CKX goes bankrupt then the government would just be overseeing the cashcow that is Elvis Merchandising. Graceland could still close its doors and the government/and CKX could still not touch it. The mansion is still with the famly.

[UDnKY]

CKX does not own Graceland, Lisa Marie owns it. If EPE files bankruptcy it would affect Graceland tours, not the mansion itself, because EPE/CKX are in charge of the tours. Lisa Marie retained ownership of the mansion and all the contents inside the house and grounds. The government would not take control of Graceland because it is privately owned. I think it was a mistake for Lisa to sell any portion of EPE. But, that`s just my opinion.

[SleepyJack]

When you think about it really it`s all a bit of a disjointed mess.I wonder if anyone will ever come along with the money to just buy everything,the mansion,the music,the image rights...have everything "Elvis" under one roof so to speak? I`ve said it before on here but I do think that very often the parts that make it all up often work against each other.

[KPM]

Who is to say that Lisa Marie will not sell her stake in Graceland? I would say that is the next logical step, particularly if the attendance drops drastically over the next couple of years. I feel that she will sell out to a Management Company, possibly CKX. However, this is all just speculation and hopefully attendance will start to pick up again soon. I sincerely hope so.

Brian

Why would she .......and why should she? She and her lawyers made sure in lengthy negotiations that "Graceland is owned by her" in the deal with Sillerman. You don't go thru that process of negotiations to a few years later then decide-ah I might as well sell!!
The burden of leadership is on Sillermans back and the bulk of the expense-no matter what he does it is still her land, her home, her fathers personal property is hers...................Sillerman leases the estate and grounds. There is not one logical or rational reason she would sell Graceland-she reaps benefits and has little upfront expenditures for those benefits. Lets keep in mind that Elvis Presleys likeness
earned $60 million last year-hardly a pittance. People in 1981 said Graceland will never turn a profit, and will have to be sold-did not happen.Attendance to all major attractions around "the world" is down, not just Graceland, so this is not something affecting only them.
I will go on record as saying Lisa will never sell Graceland whether it is open for fans or closed.
The CKX problem is one of Sillermans making IMO, and he is out as chairman.......and he has not mustered the right bid to outright buy CKX........but once again all stocks have suffered in the last 16-18 months, all business are down compared to 2 years ago.

ATTENDANCE HAS HELD PRETTY STABILE considering the world downturn:
Graceland visitors

2009: 542,728

2008: 536,196

2007: 612,541*

2006: 554,193

2005: 551,292

[KPM]

According to this report Elvis business seems to be doing well in these bad economic times.

3rd Quarter earnings reports from CKX:
Results for the Nine Months Ended September 30, 2010 For the nine months ended September 30, 2010, revenue declined $12.2 million, or 4.9%, to $236.2 million, as compared to the prior year period. The decline in revenue is due to $10.0 million of non-recurring revenue recognized in 2009 from terminated license agreements at the Presley Business and the Ali Business, $10.2 million of revenue from a one-time limited run television program in 2009 and lower revenue from So You Think You Can Dance, offset by an increase in American Idol revenue. Revenue at 19 Entertainment decreased $8.3 million due to the $10.2 million in revenue received in 2009 in respect of the one-time limited run television program referenced above and a decline in revenue for So You Think You Can Dance due to fewer broadcast hours in 2010 due to an additional season in 2009, which was offset by a $10.1 million increase in American Idol revenue. Excluding the prior year terminated license agreement, revenue at the Presley Business increased $5.7 million primarily due to higher royalty revenue, including royalty revenue from the Viva ELVIS Cirque du Soleil show in Las Vegas. ........

[KPM]

It's not looking good at all for CKX and their shareholders. They have been given a warning that their value is dropping to a dangerous level. This could and would affect Graceland tours and the EPE business in a very negative way. If it keeps on losing money then EPE may be forced to file for bankruptcy and if that happens that means the government can take over Graceland. Not trying to scare anyone but it's just something that could happen more than one would think. EPE just recently announced that ticket sales are down at Graceland. Sign of the times?

Huh?? EPE turns a profit.
The government would not take over Graceland-if "CKX filed bankruptcy" they would be allowed to restructure their business in order to pay their debts and to run their business.
Any business under the "CKX CORPORATE UMBRELLA" that turned a profit-would be left alone "or".... in the worst case scenario be forced to sell their 85% to some other investor to help "CKX" to stay afloat-but the terms of the agreement with Lisa would still stand-she owns Graceland, the land and her fathers personal property. Perhaps a new investment group would be good for EPE and Elvis....who knows. Sillerman has not panned out IMO
EPE is one of the high points in CKX even American Idol has soured.

[monk37]

the government can take over Graceland? why would they want to do that?

private business interests would snap it up before the government.

[vivaelvis]

Sillerman is no longer in the picture so his name and involvement with EPE or CKX shouldn't be discussed in this matter. The only thing he is now is the majority shareholder of the company. But I wouldn't go putting the blame on him for any failure. The economy has been very unstable the past 3 years and counting and many major projects around the nation that were supposed to get off the ground haven't or are now canceled altogether. I don't know if CKX will take on the proposed massive remodeling of the Graceland area or not. Time will tell. But something desperately needs to be done. I was there a couple weeks ago and noticed at how much blight is starting to show up alongside EP Boulevard from East Brooks down to Raines. They (EPE and Memphis government) can't expect tourists to want to continue to go there if they do not feel safe in the area. Came through there at night as well and saw seceral hookers right there along the famous wall. Some here may not understand the dangers there but that is playing a major part on attendance dropping over the past few years. That and the fact that Graceland and it's attractions have not changed all that much over the past decade or so and are less appealing.

[Nicole Presley]

I hope nothing will happen to Graceland. I wanna go there at least once in my life. But it´ll only be possible in a few years.

[Tigerman1975]

CKX does not own Graceland, Lisa Marie owns it. If EPE files bankruptcy it would affect Graceland tours, not the mansion itself, because EPE/CKX are in charge of the tours. Lisa Marie retained ownership of the mansion and all the contents inside the house and grounds. The government would not take control of Graceland because it is privately owned. I think it was a mistake for Lisa to sell any portion of EPE. But, that`s just my opinion.

Thank you for reiterating my point.

[KPM]

Sillerman is no longer in the picture so his name and involvement with EPE or CKX shouldn't be discussed in this matter. The only thing he is now is the majority shareholder of the company. But I wouldn't go putting the blame on him for any failure. The economy has been very unstable the past 3 years and counting and many major projects around the nation that were supposed to get off the ground haven't or are now canceled altogether. I don't know if CKX will take on the proposed massive remodeling of the Graceland area or not. Time will tell. But something desperately needs to be done. I was there a couple weeks ago and noticed at how much blight is starting to show up alongside EP Boulevard from East Brooks down to Raines. They (EPE and Memphis government) can't expect tourists to want to continue to go there if they do not feel safe in the area. Came through there at night as well and saw seceral hookers right there along the famous wall. Some here may not understand the dangers there but that is playing a major part on attendance dropping over the past few years. That and the fact that Graceland and it's attractions have not changed all that much over the past decade or so and are less appealing.

On the contrary, when you speak of the financial problems that CKX has-Sillerman is very relevant to any conversation on that-he is no longer chairman of CKX for a reason-obviously the board no longer had confidence in his leadership.........if they did he would still be chairman. If they did the company would be in great shape because his leadership would have done that-and he would still be at the helm.
His leadership and his guidance just did not pan out-sure you can blame the downturn for the last 2 years-but not before that.
As far as attendance-it has held steady for the last 5 years-attendance was up in 2009slightly over 2008.
Sure something needs to be done about Memphis/blight and also St.Louis, Detroit, New York, San Fransisco, Los Angeles, and many other "large urban cities in the US"-you want to really see blight/crime/drug problems-I invite you to come to East St Louis and try driving thru it in the "daylight" and that has been that way for a couple decades.
As far as nothing new being done to Graceland-they have special differing showcases each year concerning points in Elvis's life-his Army career, Sun Records, 1969, the movie years, his cars etc.........Graceland is not Dinseyland where new rides are needed every few years-the main attraction is "This home was Elvis Presley, he lived here"period.
My 26 year old daughter went there last Thanksgiving..... I will say once again she walked Beale Street, and the surrounding area, she felt safe at Graceland and she felt safe in Memphis-but then again she has seen East St. Louis and knows what danger looks like. She did not go to expecting huge electronic wizardry or grand attractions she went to walk thru the home of Elvis-and she plans on going back next year 2011.
I have always had a problem with people who seem to want EPE to do what they local city/county/state and Federal Governments are suppose to be doing-running the city,addressing blight, crime and problems which are inherent in any city.
What would Memphis do if Elvis's Graceland were not there-fold up tent and call it a day???