Do you remember the movie “Brewster’s Millions”? It came out in 1985, starring Richard Pryor and John Candy.
Pryor played Monty Brewster, a minor league baseball pitcher who never in his life earned more than $11,000 per year. Suddenly, he is informed that he has inherited a fortune from his deceased great-uncle (played by Hume Cronyn). But there are strings attached.
Brewster can take $1 million in cash (the rest to be distributed among charities and the law firm handling the estate) - OR - if he can spend $30 million in 30 days, he will inherit $300 million. He can only give 5% to charity and can only lose 5% to gambling, and anything he buys counts as an asset.
Now, I don’t know if you’ve ever tried to spend $30 million in 30 days. After almost 48 years, I’ve not spent the first million yet! It’s not an easy feat to accomplish.
Unless your name is Patricia Kluge.
(Note: Patricia, darling, when posing in front of your vineyard with your own high-end wine label, remember to turn the bottle so we can see the label.)
Oh, I fear this is not going to end well.
Patricia was the third wife of media mogul John Kluge (KLOO-gee), the creator of Metromedia, which he sold in 1986 to 20th Century Fox for $4 billion. He was also a noted philanthropist, giving an estimated total of $500 million to Columbia University, University of Virginia and the
Library of Congress. He died last September at the age of 95.
Hmmm. He appears to be a little older than she.
Patricia was John’s third wife (of four), and a former nude model. Their divorce settlement was the largest in history, granting Patricia $1.6 million per week.
As my good friend Rev. Scales often asks his congregation, “Did you hear what I just said?”
Let me spell it out for you: one million, six hundred thousand dollars… PER WEEK!
That’s around $83 million per year, if I counted right.
And now poor Patricia has fallen on hard times.
The 23,538 square foot mansion she purchased for $100 million will be auctioned off next month. The sale price had been lowered to $24 million with no takers.
Her antiques and jewelry have already been auctioned.
That's a $3.8 million clock, by the way!
Her Virginia vineyard, Kluge Estate Winery, was foreclosed on in October.
Her failed venture at developing the Vineyard Estates Subdivision was also foreclosed on and auctioned off.
Sorry, no picture, but surely you get the idea by now.
Altogether, Patricia borrowed some $66 million and now is struggling to repay the banks.
We’ll be taking up a collection for Patricia following the sermon.
They say “Money can’t buy you happiness.”
It apparently can’t buy you brains either!
The story caught my eye because of the wine angle. Some day I want to have my own estate and grow my own vines and bottle my own vintage. Hopefully I can do it for less than what Patricia Kluge spent. After all, I’m just a poor preacher.
“I know… I’ve heard you preach.” (Beat ya to the punch line!)
Keep in mind, this is all happening in Virginia. Now, those who live in Virginia say their wine is the best. Wine-making was brought from France to Virginia by none other than Thomas Jefferson.
But Albemarle County is not Napa Valley.
Patricia bought 960 acres of vines and pumped some $50 million into developing the winery. She hired consultants from France. And where other local vineyards were bottling 5,000 cases per year, Kluge Estate was shipping out 50,000-60,000 cases. The wines were good, according to locals, but she wanted $75 per bottle, and I’m sorry to say, there’s not a wine in Virginia worth all that!
The market agreed, and forced the price down to a more reasonable (but still suspect) $24 per bottle.
And the debts kept piling up. She took out multiple mortgages on her mansion, but eventually the banks foreclosed. Sadly, attempts to sell the Winery at auction did not produce a single bid and the bank still holds the note, willing to deal at $19 million.
The liquidation of the winery’s cellars ended when they couldn’t even unload the inventory for $2 per case.
Patricia is now living with her third husband in a more modest 6,600 square foot home they built as a spec house in the failed subdivision. They bought it at the foreclosure auction for $3,675.
While I’m sure there is a lesson in here somewhere, it will probably go unheeded.
After all, don’t we all from time to time have “champagne wishes and caviar dreams”?
But here’s a word of advice: If you suddenly come into a massive amount of wealth, spend your first ½ million earning an MBA.
You’ll thank me for it later.