The Miami Herald from Miami, Florida on December 16, 1973 · 303
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The Miami Herald from Miami, Florida · 303

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Miami, Florida
Issue Date:
Sunday, December 16, 1973
Page:
303
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THE MIAMI HERALD 3-M MGM—F rom Stardom to Business Kingdom Sun Dec 16 1973 By LEROY F AARONS Washington Post Service LAS VEGAS — The MGM Grand Hotel opened recentiy with some of the greatest publicity buildups since the London Bridge came to Ari-zona It represented the first phase of a massive campaign to promote the $106-million leviathan into the most suc- cessful resort hotel in history Success in Vegas terms means money And the Grand with its ripoff on the MGM movie nostalgia gimmick (the hotel takes its name from the lovely old Garbo film of the same title) its jai-alai fronton its 5000-seat grand ballroom its 300 miles of draperies and so forth was conceived and executed with the hard reality of cash profit in mind REPORTS HAVE it that MGM whose movie-making facility in Culver City Calif is limping painfully from the near-fatal wound of the recent sell-off of many of its assets hopes to recover $10 million a year in net profits after taxes from the Grand Hotel’s gaming casino largest in the world MGM executives nervous about charges that they were prepared to sacrifice the ' venerable studio’s film role to finance the huge overruns mounted by the Grand Hotel ($30 million above original estimates) are not talking about anything publicly these days other than their 1000 slot machines 2 100 rooms 44 marble columns and 300-000 plumbing fixtures They flatly refused repeated requests for interviews by this reporter But industry sources speculate that MGM’s moviemaking days are at an end “It’s my opinion” said someone with access to the internal thinking at the studio “that as soon as the Grand Hotel is operating for a quarter — say by March — and showing profitability all of MGM’s film operation except for television will be dumped” THE MGM “master plan’s” master is Kirk Kcrkorian the sly reclusive wheeler-dealer described by Variety as “the biggest closet millionaire since Howard Hughes” Kerkorian now in his late 3 X-RATED HITS! "EROTICON" Plus "MAID IN SWEDEN" also "THE LOVE REBELLION" GENERAL GttEKA C0RR ALL CINEMAS $100 EVERYDAY TIL 2:30 P M CUTlERRfDGE SAT-SUN ONLYj RIVIERA -SOUTH MIAMI S DIXIEHIGH WAY 666-6513 170TH STREET NMIAMIBEACH 945-1791 CUTLER RIDGE PERRINS 238-5311 POMPANO II N FEDERAL HWY -941-5035 I6THST LAUDERHILL OP P LAUDFRHIU MALI 735-7070 From the producer of Bullitt" and The French Connection'' HI SEVEN POMPANO I NFEDER AL HWY-941-5033 THE OPTIMISTS SUNRISE II FT LAUDERDALE 565-1883 THE PAPER CHASE IPwp WESTCHESTER SW MIAMI 264-4880 HOLLYWOOD DOWNTOWNCIRCU 923-7000 LAUDERHILL I LAUDERHILL MALL-581-6447 SUNRISE I FT LAUDERDALE 56S-1883 STREISAND SREDFORD THE WAY WT WERE MhE!M!HT DOES NOT IECOMMEND FOR CHIIOREN iflH1 FILL ’ vcKOftt qvkkly j nt 4 h Mr Barba'S WoN 166 N W 93 St did and hod 41 rtpltw in 2 day USE CLASSIFIED ADS rh Wami Hrld A Miami Nawi -iss mm -S a v §" 'In iuiiwm 50s was a self-made man who rose from the son of a poor fruit rancher in Fresno Calif to great wealth via a long career of entrepreneurial legerdemain that culminated in the sale in 1965 of his unscheduled airline business for nearly $150 million With the proceeds of tHat sale plus some incredibly fancy financial manipulations with United States and European banks Kerkorian built the International Hotel in town and gained control of both Western Airlines and MGM That was in 1969 Since then Kerkorian has spent nearly all of his time and reportedly much of his fortune trying to dig both firms out of the hole Now reports have it he has all but given up on the possibility of MGM living off of more film proceeds and his shifted full attention to the Grand Hotel television production and the rental of MGM’s library of 1400 films (including the surefire re-release “Gone With the Wind”) In recent months to the shock and dismay of MGM-ophiles Metro sold off all of its film distribution business its foreign theaters its music publishing and record company and sub-licensed the film library to other distributors To seasoned observers of the movie industry the latest steps virtually emasculated the 50- CYCLE-RAMA 1 "BORN LOSERS” PG 2 "HARD RIDE" PG 3 "CHROME and HOT LEATHERS FIRST RUN "THE BIG BUST OUT"r — ALSO - “WOMEN IN CAGES" R hfmtti X-Wa ON BOTH SCREENS “THE SEVEN UPS” ALSO “THE RED SUN” pc' PG FIRST RUN “FISTS DOUBLE K”p - ALSO - “HAMMER OF GOD" Mrs Use Exit on 1 95 FIRST RUN "THE BIG BUST OUT" “WOMEN IN CAGES” R FIRST RUN “THE SEVEN UPS” SALZBURG CONNECTION M h:t"ii o:i sun PC i £ FIRST RUN "THE BIG BUST OUT' Grand Hotel at right Overshadows Las Vegas Strip being promoted as largest resort hotel in U'orld year-old studio as a moviemaking entity despite insistences by the new management (mostly business executives and lawyer types) that selected quality films would still be produced The signs darkened when MGM’s president James T Aubrey Jr resigned in ramm'S' wmmuw ‘He (Kirk Kerkorian) satv that the biggest newest luxury hotel could take most of the money in that toun — Gregson Bautzer KWWW iHISSiFW November Aubrey controversial former CBS president had made a lot of enemies in his time but he was the last symbol of MGM’s active effort to produce movies His departure and replacement by Kerkorian himself as chief executive officer seemed like the handwriting on the wall Aubrey is not talking about it but friends say he left because he came to feel that Kerkorian yielding to the pressure of his own economic problems was making hasty and disadvantageous moves on ' MGM’s behalf MGM however has let it be BURTON & TAYLOR t TOGETHER AGAIN - IN HAMMERSMITH IS OUT EARLYBIRD H OO LOW SENIOR PRICES yENEWANiEmsim I ART STUDIO I 531-6817 “£ FEATURING UM-SFX m EUROPEAN BODY PAINT IK G 301 23rd STREET MIAMI BEACH m OPEN 7 DAYS' 10AM-4AM" I 532-1719 I DISCOVER A GREAT GETAWAY IN THE BEAUTIFUL BAHAMAS Cape Eleuthera Resort And Yacht Club o 4 DAYS3 NIGHTS 7 DAYS 6 NIGHTS $250 Per person double occupancy Tropical Islander Package includes: Elegant guest villas with private patios Welcome cocktail plus Manager's cocktail party Gourmet dinners breakfasts (MAP) Unlimited tennis including right play 50 discount on greens fees championship 18-hole course Devlin Hagge designed Play! Cut loose! Relax! On the unspoiled island of Eleuthera Direct connections via daily scheduled Pan Am jet flights to Rock Sound Tropical Islander Package does not include air fare taxes or gratuities Add SI 250 daily for children up to 17 years of age Third adult in villa S2050 daily For reservations or color brochure cell Pt Lauderdale: 565-1828 In Miami call: 943-4581 IZ known that Aubrey’s days and his $210000 salary were numbered when several key films this summer (“Pat Garrett and Billy the Kid” and “The Man Who Loved Cat Dancing”) flopped at the box -office SOME SOURCES say Kerkorian may be in deep financial trouble ' He was forced to sell the International to the Hilton chain at about half its value to finance his open ventures (It later became the most successful hotel in Vegas history setting up the incentive that led Kerkorian back into the Vegas hotel line) More recently Kerkorian sold his $900000 147-foot-ocean-going yacht and his $4 million personal DC-9 jet plane as well as a block of his Western Airlines stock MGM recently declared a dividend for the first time in nearly five years Kerkorian as the stockholder with 48 per cent of the shares received $52 million the first return he ever got on his MGM investment The surprise ' dividend raised the question of why MGM was paying' dividends with a $23 million net loss in xmiimmxnqn PLAYGIRL ART STUDIO FEATURING CREATIVE BODY PAINTING “ 505 E HALLANDALE BCH BLVD OPEN 7 DAYS HALLANDALE 10AM-4AM 921-2821 ELLIOT GOULD THE LONG GOODBYE - ALSO -‘‘WHERE’S P0PP”R Pool complimentary lounge chairs and private beach Spectacular water sports charter boats for hire Nightly entertainment Calypso native Bahamian musicians Round trip transfers between Rock Sound Airport and Cape Eleuthera Resort And Yacht Club yf'n XlL A its third quarter this year and a drop in its operating profit of nearly 60 per cent Much of the money for the dividend came from sale of the distribution business the foreign real estate and other assets fueling speculation that part of Kerkorian’s motivation in the sales was rTBirwa i ‘Kirk needed money lie couldn't trait for a year to have the master plan operate —An D1GM Source THE Kurfjwrn to set himself up for some ready cash Reports filtering from inside indicated that there were some MGM directors who strongly objected to the dividend decision and there are rumblings of possible stockholders suits over the issue MGM’s next annual meeting in January should be a lively one OBVIOUSLY THE subject is complex and convoluted but it does reflect the stale FIRST RUN! ABCIFtORIDASTATEiTHEATRES Cl o! a cc COR Am Exrlusirt ingagemenf LAST BIG DOUBLE DEAL! 5 DAYS THE BANK DICKi IT’S A GIFT DON’T MISS THIS i yuLbrynner RICHARD BENJAMIN JAMES BROUN W A COMEDY "There s only one small complication I ma newlywed" or sc or SUNILAND-2 SHORES Tin: stnni iiF oUDSSDD I n'L'KZS FLORIDA?! He has long hair rebel agamtl the establishment The leader of -nV-ti-xvl is 1 His mjnorlty group He communicates with criminal and cop-out He has come to save Mankind He if loved by few Despised by many Finally He if executed at the age of 33 THE GREATEST LIFE EVER r LIVED! 'lie Natnity The Seiniw on the Mount Thelrial tjy Pontius Pilate Hie Roman Oesecrators The OrciDM ItieBetiaal 'nGetnswane The UU Sucoer The Ciutil'uou The Toml) The Pewaiecticn of moviemaking today where the decisions are made in terms of balance sheets and investments (although many of the stone-age techniques still linger) Kerkorian acquired MGM because he became convinced that films with their television resale potential could be converted to a profit-making situation It didn’t take him long to change his mind — helped by the shocking realization that MGM was $82 million in debt That and the 1969-1970 recession made it an uphill battle although eventually MGM did cut its debt to $24 million and began temporarily showing a profit By 1971 Kerkorian was convinced that diversification was the only way MGM could survive At a brainstorming session in October of that year attended by Kerkorian’s executives and Gregson Bautzer the Beverly Hills lawyer who represented Kerkorian in the MGM takeover the decision was made to go with the Vegas hotel “The germ was born after Kirk saw the earnings of International Hotel the year after he sold it to Hilton” said Bautzer “He saw that the biggest newest luxury hotel could take most of the money in that town” The original estimated outlay for the Grand Hotel was $75 million MGM raised some of the money with a $50-rnillion bond offering a $15-million bank loan collateralized hy the interior furnishings The rest $45-million was to come from internal MGM earnings The hotel was built without floating additional stock or diluting its value to stockholders But the growing over-costs and the pressure to rush the Grand Hotel to completion so it could start paying for itself brought heavy strains on the film production end “KIRK NEEDED money He couldn't wait for a year to have the masterplan operate” said one insider “He Till: EXCLUSIVE SEVEN UPS PG A Siegel Filmttie Man who brought you”Dirty Harry” — ALSO — MARLO THOMAS in JENNY A DOUBLE FEATURE OF W C FIELDS’ GREATEST LAUGH RIOTS gfft&Sk urtiuv'cv no Coming Soon — Magnum Fore If it was murder where’s the body? MM co-starring Iurcncc Olivier Mirliiicl (!aine MASTERPIECE Neil Simon's The Heartbreak Kid Gliarlrs Groilin (lil Shepherd Coming Soon — Woody Allan’s “SLEEPER" A Story of The Chant I The Glory of His Spoken Words a beard and teeert tendeh He if a Yf H if alive! TIir in:iti:sf Jitnni EunrTnIiI CHARITON Ilf STON aiONf Y fOITItft MAX VON SDOW JOHN WAVNC MAKTIN LANDAU ahtlLY WINtfR OOIOTHV McGUIRI TTfNMiajlO got caught in a bind and had to liquidate in areas not previously anticipated” Kerkorian says Bautzer is concerned with one thing: making profits Sentiment or nostalgia does not enter the picture "He believed MGM presented an opportunity for profit I don’t think he cared whether it was producing fabricated steel or movies as long as it made money He has said ‘If you can’t make money manufacturing a product — a movie or an Edsel — you better examine the method by which you are manufacturing that product "If you have to change a formula that is historic and may have been once beloved you go ahead and change it I'm an MGM stockholder and if it was decided that MGM miM Mijn i pPGl IKEHDWMTW1HM STREISAND QREDFORD TOGETHERI ' - THE WAY WE WERE PG ffl ELLIOTT COliLI) “ 'Till: LOING Goomm” PG CABARET pg CHILDREN’S MATINEE TARZAN & LION IN PERSON AT THEATRE DADE COUNTY AUDITORIUM BOX OFFICE & PHONES 642-8000 & 642-91 1 4 OPEN TODAY (SUN) ond DAILY 10 to 5 — SUNDAYS 1 to 5 (Phono Ordort Only On Sun) 29 SAVINGS ON SUBSCRIPTION SERIES TICKETS ARE THE IDEAL IR! -IHNil Imtrtca'l Pud nd the pnd f (he World 1 Jair DUKE ELLINGTON SUN -IAN 13 DiipcI 1mm Manro Mi nn S f jvna iff — NAIIDNAt DANCtS 01 MtXICO "FOLKLORICO” to tHOdwtx imyti? I fmnium hem Ifiijs iur nr O'np'im mriuHmf (fin pm IDE— JAN 15 Ourrt Irnm Vifni tfijMlyillli!l$ S Hunk presents Me V1ENKA CHOIR BOYS I t! mM'i t nnreM ’ira’Y TUE-IAN22 Nu'flli I'firnk The IfwmpFinf fttvii li Mum el tM pufcit VAN CLIBURN in pit ji( Mpniyim THU-IAN 24 lie World s Oilest MmiIjIhI KRESKIN Returns In The Amazing World of Breskin FRI — IAN 25 Mijmi 1 fluent ilf fh rld J I'Ntfsf llunriKi icfi'iH CARLOS MONTOYA Kl ill nr p w m tltnenca All Pertormoofti ore ot 8 JO pm except lor Sundays ot 7 JO PRiLfcS I"OR ALL PERFORMANCES Except Jon ?4th) — $9 50 8 50 750 6 50 (fox Inc! ) JAN 24 — KRESKIN Performance prices - 5650 5 50 4 50 3 50 C I AL5UL5C R O !ON S£ RF S P L AJ You May Moke a Senes of Your Choice — I Ticket — Beit Location 950 for Any 10 Performances (Full $95 value at o full ?9 Dtcount) -- Total Senes Price is S67 50 I ickets NOW on sale ot AucTrorium Phono's "54? 86(36 oJ TiVooen oday (Sun) from I to 5 (Phone orders only on Sunday) and Do'ly from 10 to 3 Mail Order$: Make check or money order payable to International Theotrt Benefit ond motl to: Internotionol Senes Dode County Auditorium 2901 Wes Flagler Street Miami 33135 Please enclose stomped self-addressed envelope or t r ATS mA W'1 Tickets NOW on te e ah AUDITORIUM ALLEGRO MUSIC HOUSE ALL MIAMI AND FT LAUDEROALE JORDAN MARSH STORES SAKS FIFTH AYE MIAMI IEACH AND SUROINE'S DADELANO PHONE ORDERS: $42-8000 AND 842-8114 One Night Only — TUES FEB 26 — 8:30 ALL REMAINING GOOD SEATS NOW AT DADE COUNTY AUO ONLY! The Glamorous Stars of the Metropolitan Opera Renata Franco Tebaldi and Corelli In Duo Concert with duets from LA IOHEME ond TOSCA ond oriot of SorIotts Verdi 8ellml 8iet tossmi Doniietti Motcogrsi ond Puccini Prices: SIS $12 $10 St with o few best-locotion seats ct JZ0 FOR CROUP DISCOUNTS CALL tiTHtS ANNETTE 888-8991 or DARRELL 642-8000 OR 642-91 ff had to go out of pictures entirely and if it went into ball bearings and made money I’d cheer” TO THOSE who still hear echoes of the footsteps of Dorothy on the yellow-brick road and see visions of Gene Kelly dancing in the rain this sounds like nothing less than blasphemy And it is a little sad But nostalgia freaks may fail to remember that even in the old days movies were made to make money More often than not art was a lucky byproduct Now with impossibly increasing costs the film business is falling to the men who run the giant conglomerates Whether a glimmer of artistic integrity can survive in that atmosphere is still to be seen “BEST LOVE STORY OF THE YEAR”! JOE GEtAtS — HEWSDAY pm" ‘ ‘ ‘ ‘ W STREISAND AREDFORD TOGETHER! THE WAY WE WERE COl uumi nctiiws MSUP PPOOUCW) SAY SHRh-SDH P01UM !! Pqi INOW18I CARiBlCi CHRISTMAS GIFT! SAT t SON -FEB 1 2 S3 The PhenoniBiisI “Bail Ballad I Sian” — Miami Htrald BALLET SPECTACULAR GALA will Ikt jrmtBil hill! itin §t Ifti wnrid Symphony Orth In 30 dtfipioAl — I Mum Pftimini ml I Ws'id Piwmin -m Oilfarntl Pi oft inn f rh HifM TUE-UBI2 - Ini iMnti liinHnM'jim— flmtt fiflfl) iBtlift - If ROYAL TAHITIAN DANCE CO JhPwBM IMtWCHM fRI-flB lb Direct from Madrid Me ticcllent youit Spanish Dancer JOSE MOLINA M jnd full rn ftl SfljfnHirrrt ftfeL- f Rl — MAR lb A GREAT EVENT fNUR0Kil sEteaar Th Mifra at II ia OuNor 111 MIAMI PERFORMANCE IN YEARS MON -MAR 18 VrF 14 Pufy Pv JOSE GRECO tndhit ttmlit l Ijibm! Spanish Pjnre Co 70m itnnn (I Jnntul Mipni prilfHminrei id w pofm FRI MAR 22 JOHN RAITT Starring In “CAMELOT” fullOichestia and Company SUN fi 1h hr(f Tmu in Mim Ovett hwlripf tee MAR 24 FESTA BRAZIL lir'4iiui'fsiirc Hnuna'lf Ml “WOMEN IN CAGES'' 1 We t - Ae 'U t

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