Elvis royalties rocket up by 34.6 percent
Memphis Business Journal - by Jane A. Donahoe
Photo Credit : COURTESY ELVIS PRESLEY ENTERPRISES
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.