Sunday, April 19, 2009
Behind Sir Elton's Business
Pop legend Elton John once said saving was not his strong point. Latest figures for one of his management companies show his financial skills lie elsewhere --borrowing.
He has taken a £11.5million bank loan secured on royalties from his hit songs and lavish pads, plus a £2.6million overdraft, overdue accounts show. The singer paid a chunky £299,553 in interest to service the debt.
Well placed sources suggest the loans to his 'William A Bong' holding company were used as working capital, and his finances are robust.
They say the business, which manages the star's touring income, benefited from a successful year and showed a healthy return to profit.
Earnings, boosted by a three-year, £30million deal from performances in Las Vegas, swung from a £1.4million loss to a £10million profit for the year to March 2008.
Turnover dipped slightly from £24m to £23.7million.
With only £2.2million of sales coming from UK performances, the star was been hit by the weakness of sterling abroad. He took a £426,557 hit turning his income back into pounds.
His total debt was £34million, which fell due for payment within one year, but this was balanced by £29million owed by other companies to the firm.
The star once said: 'I have a flair for writing songs but I don't have a flair for business.'
In the past he has splashed out £300,000 on flowers . At a court case in 2000 it emerged that aides were so worried about his spending that they tried to limit it to £200,000 a quarter.