LV clubs feeling pain of downturn

The Wall Street crisis has sent a chill through the once-blazing Las Vegas nightclub industry, with reports of downsizing and the slashing of celebrity fees.

"Business was down 10 percent before the crash. Now it's 20 to 25 percent," said a veteran club operator. "Wait until November or December. The bigger places will have to trim the fat."

Clubs that routinely paid six figures for celebrity hosts during a free-spending three-year run have dramatically cut back, said a club entertainment executive.

Paris Hilton, Britney Spears, Mariah Carey and Jessica Simpson will still get $100,000-plus, the source said.

But the clock is ticking on the Kevin Federlines and the Spencer Pratts. It was Pratt, the fiancé of Heidi Montag in the MTV reality show "The Hills," who famously told David Letterman during a June appearance that he "won't go to a club anymore for less than $100,000."

"Celebrities who were getting $30,000 to $40,000 a night are now lucky to get $10,000," the club industry source said.

The stripper industry is taking a hit as well, a source said.

"Strippers were making five grand a night. Now you're hearing horror stories from the top clubs. They're used to making a minimum of $1,000 a night. They're not seeing as many high rollers coming in."

One of the club executives predicted the age of the mega-club is "officially dead."

"I know people who are leaving Vegas that think the heyday is done. People are wracking their brain over what's the next big thing," he said.

The celebrity host bidding war has been fueled by Pure and Tao, the two biggest clubs on the Strip.

Celebrity fees were falling well before the financial meltdown.

"The economy is part of it," said one of the club executives, "but it started with the IRS raid. Steve Davidovici drove the market up."

Davidovici is one of the managing partners of Pure Management Group. Two of its clubs, Pure and LAX, along with the headquarters, were raided by the IRS in February.

Davidovici, a veteran club operator, "outspent everybody" when it came to A-list talent and DJs, two of the industry execs said.

When he was still talking to the media before the IRS investigation, Davidovici emphatically denied published reports that he's paid up to half a million dollars to land Hilton or Spears for special events such as New Year's Eve.

A story has been circulating for several years that Davidovici guaranteed DJ AM $1 million a year to keep him from the competition.

It wasn't long ago that DJs received $1,500 a night, an executive said. That jumped to $8,000 in recent years, and Davidovici doubled and tripled that to beat the competition.

THE SCENE AND HEARD

Rumors were flying Tuesday that Ellen DeGeneres was planning a surprise appearance at the "Legends in Concerts" celebrity impersonation show at Imperial Palace. Word was she was going to film the segment for her TV show without fessing up until she completed her gig. The show features tribute artists who impersonate Jay Leno, Donna Summer, Justin Timberlake, Tom Jones, Madonna and Elvis. DeGeneres also is taping a segment at today's celebrity pro-am tournament at TPC Summerlin, site of the Justin Timberlake Shriners Hospitals for Children Open.

SIGHTINGS

Actor James Woods, having a cocktail with a female companion at Caramel Bar & Lounge at Bellagio on Monday night. ... "Extreme Makeover: Home Edition" star Ty Pennington, dining at Yellowtail Sushi Restaurant & Bar at Bellagio on Sunday night with friends. ... Los Angeles Lakers star Kobe Bryant, dining at Japonais (Mirage) on Sunday after the Lakers-Kings game. Bryant, who was with his agent and some teammates, ordered Kobe beef. ... Terry Fator, surprising Tony Orlando during his show Sunday at the South Point with an impromptu appearance with his sidekicks, Emma and Winston the Turtle. On Monday, Orlando attended Fator's show at the Las Vegas Hilton and was summoned to perform. Orlando sang "Knock Three Times" and "Tie a Yellow Ribbon" with Fator and Emma.

THE PUNCH LINE

"Terminated her hairstylist after receiving a bad beehive." -- From David Letterman's "Top Ten Surprises in the Sarah Palin 'Troopergate' Investigation Report"

Norm Clarke can be reached at (702) 383-0244 or norm@reviewjournal.com. Find additional sightings and more online at www.normclarke.com