How Elvis Presley became in debt and nearly lost Graceland

2 days ago 5

When Elvis Presley died in 1977 at the age of 42, his estate was in such dire financial straits that he nearly lost his home, Graceland.

At the time of his death, the King of Rock and Roll was in debt. He had a net worth of $US5 million ($A7.7 million), but owed the Internal Revenue Service (IRS) double that amount.

The singer’s ex-wife, Priscilla Presley, shared her struggle to retain Graceland. Despite advice from estate associates to sell the property, she fought to keep it.

“I was told that we couldn’t afford the taxes, income and state, and that we should probably sell it,” Priscilla told Entertainment Tonight in 2017.

“I was very much alone in that decision because I said, ‘There’s no way we’re going to do that.’ And they said that Elvis would be forgotten in six months.

“So, I then had to roll up my sleeves and go on a path of my own to start finding help to keep it.”

Graceland was transformed into a museum in 1982, five years after the star’s unexpected death.

In recent years, the property has generated around $US80 million ($A125 million) in revenue, with about $US12 million ($A18.6 million) going to the Presley family.

Elvis home exactly how he left it after $5.6m row

Elvis’s former home for sale

Elvis Presley’s estate was in such dire financial straits that he nearly lost his home, Graceland. Picture: Supplied

The singer’s ex-wife, Priscilla Presley, shared her struggle to retain Graceland. Picture: Jason Kempin/Getty Images for ABA

Since his death, Elvis’ estate is estimated to be worth a whopping $US400-$US500 million ($A621-$A776 million).

Here’s a closer look at how Elvis’ empire financially turned around and what became of his properties.

How did Elvis Presley blow his fortune?

During his career, Elvis sold an impressive 600 million records and singles worldwide.

At his peak, the musician commanded as much as $US1 million ($A1.5 million) per performance.

For nearly 20 years, the Love Me Tender singer was a massive moneymaker for his record label, according to Celebrity Net Worth.

When the music superstar crossed over into acting, he sought $US1 million ($A1.5 million) per movie, the Los Angeles Times reports.

He made 31 movies between 1956 and 1969, including Viva Las Vegas, Blue Hawaii and Change of Habit.

However, Elvis wasn’t exactly rolling in money. His bleak financial situation stemmed from the mismanagement of his money by his manager, Colonel Tom Parker.

The Grammy winner also blew his money on real estate, drugs, entourage, and his divorce.

Elvis Presley sings Edge of Reality, from the 1968 film Live a Little, Love a Little. Picture: Supplied

Real Estate

The King Creole actor purchased Graceland in 1957 for $US102,500 ($A160,000).

Over the next few years, the Heartbreak Hotel hitmaker bought $US500,000 ($A779,000) worth of surrounding land and household goods for himself.

According to Parade, the 23-room mansion was expensive to keep up. The estate reportedly cost $US480,000 ($A746,000) a year in the late 1970s due to taxes and insurance.

Drugs

By the late 1960s, Elvis had developed a drug addiction. Within a seven-month period in 1977, one of his two primary doctors prescribed 10,000 doses of amphetamines, sedatives, and narcotics.

It is not known how much the entertainer spent on drugs, but those close to him noted that he was often barely functional while under the influence.

Elvis bought the home for just $US102,500 in 1957. Picture: EPE

Family

One of Elvis’ biggest expenses was his family. After his mother Gladys died, Elvis’ father Vernon married Davada “Dee” Stanley.

The crooner did not get along with his new stepmother so he moved Vernon, Dee and her children into a home near Graceland.

His father added features to the property, including a swimming pool in the bedroom.

Elvis’ life was frequented by other family members, including distant cousins, who reportedly showed up on his doorstep looking for a handout.

Singer Elvis Presley wearing USA Army uniform with parents, father Vernon and mother Gladys. family

Elvis Presley with parents, father Vernon and mother Gladys.

The “Memphis Mafia”

Another big expense for the King was his entourage, the “Memphis Mafia”.

The group, which consisted of family members and friends from high school, always accompanied the Jailhouse Rock star.

Members of the gang were known for their extravagant lifestyle. Elvis paid for everything as they partied, rented women by the hour, and travelled in luxury wherever they went.

While on the road, the music icon had his hotel rooms in every city redecorated to resemble Graceland so he wouldn’t feel homesick.

He even splurged on lavish personal buys, including three pink Cadillacs.

Elvis Presley and the Memphis Mafia with their Shelby Country police officer badges

Divorce

Elvis’ divorce from Priscilla cost him financially. She was entitled to half of the proceeds from the sale of their second Beverly Hills home.

She also received a cash sum of $US725,000 ($A1.1 million), alimony, child support and 5 per cent of Elvis’ publishing royalties.

Elvis’ divorce from Priscilla cost him financially. Picture: EPE

How Priscilla turned Elvis’ estate into a successful empire?

In 1979, Priscilla was appointed trustee of Elvis’ estate following the death of Presley’s father Vernon.

Her new role also brought with it the responsibility of managing Elvis’ substantial debts.

Priscilla launched Elvis Presley Enterprises. The company set up lucrative merchandising, publishing, and licensing deals as well as turning Graceland into a tourist attraction.

By 1993, the estate was debt-free and worth a cool US$100 million ($A155 million), thanks to Priscilla’s sharp business sense.

The Cirque du Soleil show, Viva Vegas, featured Elvis’ music as its soundtrack.

New albums featuring unreleased material and remixed Elvis classics still climb the charts upon their release.

Elvis is now the second most lucrative deceased artist in the world behind Michael Jackson.

Elvis is now the second most lucrative deceased artist in the world. Picture: Michael Ochs Archives/Getty Images

Who inherited Elvis Presley’s estate?

After the “Blue Suede Shoes” singer’s death in 1977, Graceland was left to his only child, Lisa Marie Presley, as part of her eye-watering inheritance.

She received her inheritance in a trust on her 25th birthday, effectively becoming the sole owner of the estate, according to the New York Post.

In addition to the property, Lisa Marie received $US100 million ($A155 million). But due to mismanagement and unfortunate investments, she said almost all of the money soon disappeared.

To ensure the same didn’t happen to Graceland, Lisa Marie formed a new trust, dubbed The Elvis Presley Trust, along with Priscilla. The trust was also formed with the help of the National Bank of Commerce.

Lisa Marie Presley, daughter of Elvis, dead at 54

Graceland was left to his only child, Lisa Marie Presley, as part of her eye-watering inheritance. Picture: Jon Kopaloff / Getty Images

Lisa Marie died in 2023 at the age of 54 after she went into cardiac arrest in her California home. Her cause of death was complications from a small bowel obstruction.

Graceland went to Lisa Marie Presley’s three daughters, Riley, Harper and Finley.

Lisa Marie shared Riley and her late son Benjamin, who died by suicide in 2020, with Danny Keough. She was married to Keough from 1988 to 1994.

The late singer shared her twins with ex-husband Michael Lockwood. The pair were married for a decade after tying the knot in 2006.

Speaking in 2013, Lisa Marie said she will see to it that the property “will never be sold.”

“Graceland was given to me and will always be mine,” she told USA Today at the time. And then passed to my children.”

Lisa Marie Presley with her children. Picture: lisamariepresley/Instagram

What happened to Elvis Presley’s properties?

Graceland

Graceland drew 3,000 people on the first day it was open as a museum, Rolling Stone reports.

The property welcomes more than 500,000 visitors each year and has at least a $US150 million ($A233 million) impact on Memphis’ economy yearly, according to its website.

The residence is listed in the National Register of Historic Places and as a National Historic Landmark.

Today, it’s the second most-visited house in the US behind the White House. The street name is now Elvis Presley Boulevard.

According to Realtor, fans can tour the building where Elvis slept and view the “jungle room” with its green shag carpet and Tiki decor, the trophy room, and an array of memorabilia and costumes from the performer’s stage and personal life.

Graceland is the second most-visited house in the US behind the White House. Picture: Wikimedia Commons

Living room of Elvis Presley’s Graceland home. Picture: Memphis Tourism

Las Vegas

In 1969, the star signed a deal to perform at the International Hotel, which eventually became the Las Vegas Hilton. He also made his home in a grand hotel suite while in residence.

The Hilton was also his home base while he was on tour. In fact, the hotel’s 30th-floor Imperial Suite, where the entertainer would stay, eventually became known as “The Elvis Suite.”

The King’s spirit lives on in Vegas, from the impersonators to the tribute shows, to his bronze statue in the former Hilton, now the Westgate.

In 2016, the Westgate successfully petitioned for the street name in front of the resort to be renamed Elvis Presley Boulevard.

Hollywood

Elvis came to LA to star in 31 movies in the 1960s. While making films, he also made his home in Hollywood

He and Priscilla lived large in a Beverly Hills estate from 1967 to 1973. Lisa Marie was born in 1968.

Built in 1958, the three-bedroom residence offers floor-to-ceiling windows with city-to-ocean views, a pool, and a spa. It was purchased by the King for $US400,000 ($A622,000).

The gated compound has since been extensively renovated and was sold for $US25.5 million ($A39.6 million) in 2019.

Beverly Hills estate. Picture: Realtor

Presley then purchased a Holmby Hills residence in the early 1970s. It’s said to be the last home he shared with Priscilla prior to their divorce in 1973.

The home has seven bedrooms, a pool, tennis court, and guesthouse.

Elvis reportedly replaced the living room windows with French doors and updated the kitchen before selling it in 1975.

The house last changed hands for $US20 million ($A31 million) in 2020.

Before becoming a homeowner, Elvis reportedly rented a lavish pad in Bel-Air, which has since been demolished. He famously hosted The Beatles there in 1965.

The Girl Happy singer also stayed in another Bel-Air trophy property. The home was originally built in 1931 for studio mogul Sol Wurtzel and also belonged to Howard Hughes and Prince Rainier of Monaco.

Set on 1.5 acres, the residence offers gardens, terraces, a pool, and tennis court. It was most recently sold in 2019 for $US31 million ($A48 million).

Holmby Hills mansion. Picture: Realtor

The Bel-Air abode. Picture: Realtor

Palm Springs

When the Suspicious Minds hitmaker wanted to kick up his heels and take a quick break from Hollywood, he would head to Palm Springs.

There, Presley rented the so-called House of Tomorrow. The futuristic getaway is also where he spent his honeymoon.

The property sits on an acre lot with a pool. The place lingered on the market for years, priced as high as $US9.5 million ($A14.7 million). It was finally sold in late 2020 for $US2.6 million ($A4 million).