Randy Pitchford Positioned to Grab Control of Magic Castle

The Magic Castle might have a new trick up its sleeve.

Owner Randy Pitchford has proposed a wide-reaching reorganization of the business that would take operational control and most revenue streams for the property from the Academy of Magical Arts to his companies, the Los Angeles Times reported.

Under the proposed changes, Pitchford wants the Academy of Magical Arts — the nonprofit club that operates the famous club and the rest of the 24,000-square-foot facility — to give him control over operations or find another home when the academy’s lease expires at the end of 2028.

It appears the standoff is coming to a head early because Pitchford’s plan offers $10 million in capital improvements to the 62-year-old club. The board of the Academy of Magical Arts supports the deal video game mogul Pitchford has proposed, while some of the rank-and-file of the magicians group are skeptical.

“The easiest people to fool are magicians,” one AMA member quipped, per the Times.

A new Magic Castle Club, separate from the Academy of Magical Arts, would collect dues and split revenue between Pitchford’s Magic Castle Enterprises and the nonprofit tenant. Pitchford’s employees would run the bar, restaurant, gift shop and valet while the AMA would dedicate itself to nonprofit programming. The AMA board of directors would shrink from nine members to five, with two of them nominated by Pitchford’s companies.

It’s the latest chapter in a yearslong saga at the institution.

In 2020, the Magic Castle faced a pandemic shutdown followed by a Los Angeles Times investigation uncovering alleged sexual harassment, groping and racism. The Edwardian-style mansion reopened in 2021 after a leadership overhaul.

Pitchford bought the establishment as well as an adjacent apartment building and the 33-key Magic Hotel next door in 2022.. He also bought intellectual property rights to the Magic Castle name from AMA patriarch Milt Larsen, who died the following year.

Pitchford and his wife, Kristy Pitchford, created companies to manage the holdings once they came under their control. Magic Castle Enterprises handles intellectual property, while Magic Castle Entertainment handles real estate. Together, they’re known as MCE. Erika Larsen, daughter of castle pioneers Bill and Irene Larsen, was tapped to be president of Magic Castle Enterprises, while Bill and Irene Larsen’s granddaughter Jessica Hopkins joined as chief operating officer.

AMA board members have until Sept. 29 to decide how to proceed.

— Chris Malone Méndez