With the success of the recent Baz Luhrmann Elvis movie, all eyes are on the King of Rock and Roll. However, that attention isn’t just on movie screens as the empire that owns and promotes his image (and reaps the profits) has taken some interesting turns of late, in addition to accusations of Elvis’ racism and the death of one of the actresses from the film.
While the financial arrangements don’t have the excitement of one of Elvis’ legendary performances, they are a very important part of not only the empire, but also the economy of Tennessee where Elvis’ famous home Graceland brings in major tourist dollars. However, Covid definitely had a negative impact on the number of pilgrims making their way through the famed gates.
In 2019, Graceland saw attendance numbers of nearly 535,000. A year later, as the world wrestled with the pandemic, its numbers fell to about 158,000. In 2021, numbers climbed back to 273,000 but it’s still way down from yearly averages. With Graceland being such a major tourist attraction in the state (and that aforementioned enormous generator of tourism dollars) this could lead to some major issues.
At the heart of the matter is a series of bonds that have been issued by EDGE, the economic development agency for Memphis and Shelby counties, to Elvis Presley Enterprises, the operator of Graceland. In 2017 they issued $104.3 million in bonds and currently $20 million of those bonds are in default.
However there is some confusion about who is responsible. "We did not default," said Joel Weinshanker, managing partner of Elvis Presley Enterprises. "The state agency defaulted.”
Stefanie Barrett, EDGE's director of marketing and communications stated in an email: "EDGE serves as a conduit ... The Graceland bonds must be repaid from [taxes] that are all generated at Graceland… Neither EDGE, the City, the County, the State nor any taxpayer is liable ... for the repayment."
It’s estimated that the Elvis brand generates about $23 million a year and $10 million of this comes from Graceland.
While the bond situation doesn’t spell doom for Authentic Brands Group, the company that controls the intellectual property that is Elvis, it definitely causes hardships and throws a spotlight on the IP’s finances. It is no wonder that Authentic Brands has taken a look at its bottom line and is investigating ways to make sure they get every dime they believe they are due.
One of these ways is to begin to charge for Elvis’ likeness in places such as Las Vegas, where he is woven into the very fabric of the town from his concerts and residencies to his famous marriage to Priscilla. Various chapels advertise Elvis themed weddings complete with performances and even pink Cadillacs. Recently Ben Affleck and Jennifer Lopez were married in one of these chapels and were photographed in Elvis’ famous vehicle and had even considered being wed with one of the numerous impersonators who work in the city.
Authentic Brands Group, who has owned the intellectual property rights to Elvis since 2013, recently sent out cease and desist orders to several chapels in Las Vegas who use the King’s likeness for their ceremonies.
"This includes ensuring that all products, services, and advertisements utilizing Elvis' name, image, or likeness are officially licensed by Elvis Presley Enterprises," the statement said.
After initially fearing they would need to shut down, the chapels and small businesses entered into negotiations for licensing fees. Initially, reports said that the requested fee was $20,000. However, while it is ongoing, one source said the fee has been reset at $500 annually.
The wedding industry is a huge money bringer for Las Vegas. It’s estimated that the city rakes in $2 billion a year from ceremonies and the commerce brought in from the practice.
However, Authentic Brands isn’t the only person who risks financial fallout or potential gain. One of the stockholders in Authentic is none other than Shaquille O’Neal.
When he signed a deal with Authentic in 2015, O’Neal made the choice to reinvest funds back into the company. However, the pitchman and former basketball player isn’t just a stockholder in Elvis, since Authentic holds the rights to a number of celebrities including Marilyn Monroe as well as brands such as Reebok.
“I put money back in the company, and now I own all those other brands,” Shaq said in an interview. “So if Shaq ever goes away, s**t, we still got Elvis.”