Elvis Presley Enterprises - Parker's Dealings

Parker's Dealings

Following Elvis' death, Parker had set up a licensing operation with Factors Etc. Inc, to control Presley merchandise and keep a steady income supporting his estate. Due to an ill-advised agreement between Parker and Elvis which gave RCA sole ownership of all his recording royalties prior to 1973, the estate was relying heavily on the income from Factors Etc. Inc. However, because Parker was still entitled to 50% of all Elvis' income, and after taxes were taken off, the overall amount going towards the upkeep of the estate was less than $1 million a year.

By 1980 the cost of running the estate was estimated to be as much as $500,000 a year. Priscilla and the Trust were prepared to let Parker continue to handle Elvis's business affairs, and petitioned the court to that end. However, Judge Joseph Evans, aware that Lisa Marie Presley was still a minor, appointed attorney Blanchard E. Tual to investigate Parker's management. His preliminary finding was that Parker's management deal of 50% was extortionate compared to the industry average of 15-20%. He also noted that Parker's handling of Elvis's business affairs during his lifetime, including the decision to sell off past royalties to RCA for $5.4 million in 1973, were "unethical" and poorly handled. During a second, more detailed investigation, all earnings were paid directly to the Trust instead of Parker. By this time, with the IRS demanding almost $15 million in taxes, the estate was facing bankruptcy.

On August 14, 1981 Judge Evans ordered EPE to sue Parker for mismanagement. In response to this, Parker countersued. The case against Parker was settled out of court in 1983, with the estate paying him $2 million, and the termination of his involvement in any Elvis related earnings for five years. He was also ordered to hand over any Elvis audio recordings or visual images that he owned.