GRACELAND REDEVELOPMENT SCALED BACK/EER

Sad news in my opinion.

PEP

Elvis Express Radio
http://www.elvis-express.com/

March 10th 2011
GRACELAND REDEVELOPMENT SCALED BACK - The owner of Elvis Presley
Enterprises said Wednesday it is scaling back plans to redevelop the Graceland attraction
due to a difficult economic climate.

CKx Inc. said in a Securities and Exchange Commission filing that expanding the visitors
center and adding new attractions, shops, and a new hotel adjacent to Elvis' former home
would take several years and substantial financial investment. The filing also said expenses
for operating the Memphis tourist attraction rose last year due to higher professional and
legal fees that were primarily related to a 2010 master plan that has been postponed.

The company is exploring opportunities to build a new Heartbreak Hotel with a business
partner, CKx CEO Michael G. Ferrel told The Associated Press. But the other previously
studied parts of the redevelopment would happen only in "incremental steps, depending on
the economy", he said. "We ran straight into a headwind for what this project was supposed
to be," Ferrel said. "It's going to be done on a different timetable than we first anticipated for
reasons beyond our control."

CKx has been studying ways to redevelop Graceland and the surrounding area for years, with
the possibility of breaking ground in 2011 or 2012. Ferrel told AP in August that tough
economic conditions over the past two years, including a dearth of financing for construction
and a drop in consumer spending, had delayed the study looking at improvements.

Elvis lived at Graceland for 20 years before he died in August 1977. The home has been
open for public tours since 1982.

Jack Soden, president CEO of Elvis Presley Enterprises, said the visitors complex
development is on a slower track, but the company is still committed to investing in the long-
term growth of Graceland.

"It's designing and developing with a sharper pencil, and that's the new economy," Soden
said.

Last year, 518,940 people visited Graceland, a 4.4 percent drop from 542,728 in 2009.

Ferrel said "CKx owns about 100 acres of land near Graceland, including a 17-acre parcel
that would be ideal for a 150-room to 175-room hotel". Ferrel called a new hotel the "most
immediate need."

CKx owns 85 percent of Elvis Presley Enterprises, which owns the rights to the name, image
and likeness of the late singer.

It was also mentioned in the NY Post:

http://www.nypost.com/p/news/business/c ... nGXH2yHbDL

CKX woe is 'Trouble' for Elvis and Graceland
By CLAIRE ATKINSON

Last Updated: 5:01 AM, March 10, 2011

Posted: 12:47 AM, March 10, 2011

Elvis is singing the blues.

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.

With CKX, the company that controls the Elvis Presley brand and Graceland, posting a loss in 2010, 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.
Attendance at Graceland dropped 4.4 percent to 518,940 visitors last year, down from 542,728 in 2009, according to the filing.

Revenue from the attraction fell slightly to $36 million as higher merchandise sales helped offset the slump in visitors. The overall Elvis business, including royalties and licensing, fell 5.4 percent to $57.3 million, the regulatory filing said.

In 2005, CKX, which owns 85 percent of Elvis Presley Enterprises, announced a makeover of the 13.5 acre estate in Memphis, to include an expanded visitor center, more shops and a potential new hotel.

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."

Yesterday, the New York company, which also owns the TV show "American Idol," said its fourth-quarter loss widened because of restructuring costs, including $1.6 million in professional and legal fees "primarily related to a master plan initiative in 2010 that has been postponed."

CKX posted a loss of $14.9 million, or 16 cents a share, in the quarter compared to a loss of $4.5 million, or 5 cents, a year ago. Revenue fell 53 percent to $37.5 million.

The decline reflected a drop in revenue from the TV show, "So You Think You Can Dance," which had an additional cycle during the 2009 season. The firm saw an $11.9 million bump in revenue from "American Idol."

Both shows air on Fox, which is owned by News Corp., the parent of The Post.

CKX closed yesterday down 1.6 percent at $3.59.

Reading between the lines I wouldn't say scaled back but dead in the water.

CKX is having some financial difficulties? You mean, it isn't a multi-billion dollar company that can easily over-pay for archival footage owned by other studios and individuals; footage that isn't even for sale?

Speaking of the former company CKX who owned Graceland at one time. The new company, Core Media is said to be doing very well and buying up TV shows and entertainment businesses. They're getting rave reviews from some of the top CEOs and entertainment companies around for the way that they have built up their new company in just over a year. The new CEO is former NBC television president Marc Graboff. The former NFL Network president is now a chief officer for Core and some other high profile people have left top positions to join Core. It was mentioned in the Wall-Street Journal recently that Graboff is getting a boatload of money from its new multi-billionaire owner Leon Black and his Apollo Global Management private equity company to spend on their properties including Graceland and American Idol. So that expansion plan could start back up soon, as in this year.

Forget all the elaborate multi-million dollar expansion plans, there's a few inexpensive improvements they can make on what already exists starting with the hotel and also the archival and exhibiton ideas. Areas that need improvement for sure. Also how about installing a new restaurant that some of the visitors can really feel good about eating at. Nothing super upscale, but something other bad truck-stop food. The places there now...eesh. People visit from all over the world to see the home of the most recognizeable icon in the world. This is the kind of message you want to put out?

Forget all the elaborate multi-million dollar expansion plans, there's a few inexpensive improvements they can make on what already exists starting with the hotel and also the archival and exhibiton ideas. Areas that need improvement for sure. Also how about installing a new restaurant that some of the visitors can really feel good about eating at. Nothing super upscale, but something other bad truck-stop food. The places there now...eesh. People visit from all over the world to see the home of the most recognizeable icon in the world. This is the kind of message you want to put out?

When I was in Memphis for Elvis Week me and another friend met and spoke with Harold Collins, a Memphis city councilman and representative of Whitehaven who keeps in touch with E.P.E., and he told us that they are planning to build a new luxury hotel on the same side of the street as Graceland as well as a new museum and visitor center with the planes and cars also on the same side as the new hotel. The land where the Heartbreak Hotel is now will be used for expanded RV Park space and additional parking, and retail shops and restaurants will occupy the area where the current visitor center is located across from Graceland. They have already demolished and cleared off the land for the new hotel's location north of Graceland.

What are your thoughts on crime issues in Memphis and do you miss Sillerman?

What are your thoughts on crime issues in Memphis and do you miss Sillerman?

Crime is everywhere. Not just in Memphis.

What are your thoughts on crime issues in Memphis?

Crime is everywhere. Not just in Memphis.

Some say it's worse than Mobile, and that's saying something.


As far as the redevelopment goes, if I were a businessman I
wouldn't spend my money there. No doubt it needs it though.

Forget all the elaborate multi-million dollar expansion plans, there's a few inexpensive improvements they can make on what already exists starting with the hotel and also the archival and exhibiton ideas. Areas that need improvement for sure. Also how about installing a new restaurant that some of the visitors can really feel good about eating at. Nothing super upscale, but something other bad truck-stop food. The places there now...eesh. People visit from all over the world to see the home of the most recognizeable icon in the world. This is the kind of message you want to put out?

When I was in Memphis for Elvis Week me and another friend met and spoke with Harold Collins, a Memphis city councilman and representative of Whitehaven who keeps in touch with E.P.E., and he told us that they are planning to build a new luxury hotel on the same side of the street as Graceland as well as a new museum and visitor center with the planes and cars also on the same side as the new hotel. The land where the Heartbreak Hotel is now will be used for expanded RV Park space and additional parking, and retail shops and restaurants will occupy the area where the current visitor center is located across from Graceland. They have already demolished and cleared off the land for the new hotel's location north of Graceland.

Those plans have been on the table for quite some time. The first time I heard about moving everything to 'the mansion side of the street' was three years ago. Whatever is is they're planning on doing, it's going to happen at a snails pace.

Forget all the elaborate multi-million dollar expansion plans, there's a few inexpensive improvements they can make on what already exists starting with the hotel and also the archival and exhibiton ideas. Areas that need improvement for sure. Also how about installing a new restaurant that some of the visitors can really feel good about eating at. Nothing super upscale, but something other bad truck-stop food. The places there now...eesh. People visit from all over the world to see the home of the most recognizeable icon in the world. This is the kind of message you want to put out?

When I was in Memphis for Elvis Week me and another friend met and spoke with Harold Collins, a Memphis city councilman and representative of Whitehaven who keeps in touch with E.P.E., and he told us that they are planning to build a new luxury hotel on the same side of the street as Graceland as well as a new museum and visitor center with the planes and cars also on the same side as the new hotel. The land where the Heartbreak Hotel is now will be used for expanded RV Park space and additional parking, and retail shops and restaurants will occupy the area where the current visitor center is located across from Graceland. They have already demolished and cleared off the land for the new hotel's location north of Graceland.

Those plans have been on the table for quite some time. The first time I heard about moving everything to 'the mansion side of the street' was three years ago. Whatever is is they're planning on doing, it's going to happen at a snails pace.

They abandoned the original Sillerman plan. But E.P.E. has been planning to relocate the visitor center for years dating back to when they first opened Graceland. The big hurdle then was getting the land. Now they have all they need which is said to be over 120 acres or so.

As long as they're making a profit without doing much beyond meeting the payroll, keeping the AC on, and maintaining the property, they won't be making any major investments into it.

I look for the status quo to continue well into the future.

As long as they're making a profit without doing much beyond meeting the payroll, keeping the AC on, and maintaining the property, they won't be making any major investments into it.

I look for the status quo to continue well into the future.

I would agree with that, however, it's not the same people running it or even owning it today as was a few years ago. It's whatever Leon Black, the new owner, and Marc Graboff decide to do. They're in charge not Jack Soden or Lisa or Priscilla.

As long as they're making a profit without doing much beyond meeting the payroll, keeping the AC on, and maintaining the property, they won't be making any major investments into it.

I look for the status quo to continue well into the future.

I would agree with that, however, it's not the same people running it or even owning it today as was a few years ago. It's whatever Leon Black, the new owner, and Marc Graboff decide to do. They're in charge not Jack Soden or Lisa or Priscilla.

Exactly. Interchangeable entities. Forget emotion. It's all business.

Here's something to think about. If Core Media feels a concern to invest millions into the Graceland area, an urban district with poverty in the area, then they may decide to just go with a moderate upgrade, maybe add a new hotel and a new facility on the Graceland grounds next to the home to have a larger display area and relocate some of the stuff to, say, Las Vegas and have a west coast Graceland-style museum. Makes sense if you think about it. More people travel to Las Vegas in a month than they do to Memphis in a year! More people equals more revenue for Core. They could split up the planes and send the Jetstar to Vegas and keep the 747 in Memphis at Graceland. Less room to occupy that way.

With the way Core Media is doing business under the new management and ownership, I think they will restructure E.P.E. in the near future and create a more powerful enterprise that can eventually survive on it's own one day. But to do that they will need much, much more annual revenue than they get now.

I'm a bit worried about the Las Vegas economy right now. As far as the future of Elvis in Vegas, well, the Cirque du Soleil Viva Elvis venture should give us some insight.

What Graceland has going for it, imo, is that it is a National Historic Landmark. That prestigious designation makes it a place worth seeing and experiencing in perpetuity.

I'm a bit worried about the Las Vegas economy right now. As far as the future of Elvis in Vegas, well, the Cirque du Soleil Viva Elvis venture should give us some insight.

What Graceland has going for it, imo, is that it is a National Historic Landmark. That prestigious designation makes it a place worth seeing and experiencing in perpetuity.

Viva Elvis was nothing more than a glorified cabaret show put to Elvis' music all chopped up. I'm talking about a museum in the form of the hi-tech Elvis Experience Brazil attraction, only as a permanent location. The Las Vegas Hotel (formerly known as the Las Vegas Hilton where Elvis performed) has 50,000 square feet of unused space right now where the once popular Star Trek Experience was. An Elvis-Las Vegas Experience would be a money maker for both E.P.E. and the LVH. They could then remodel the suite where Elvis stayed back to what it looked like when he was there and open it for tours and rename the theater after him. I can't believe it hasn't been renamed by now as it is.