Steve Rubell and Ian Shrager, two born-and-bred New Yorkers, met in college in the late 1960s. They could not have been more different: Rubell was hyper, loud, and always up for a party; Shrager was cool, retiring, and business minded. Despite, or because of, their differences, they would, for 33 months, own and operate the most famous nightspot on the face of the earth.
Rubell and Shrager started small in the early 70s, opening a chain of steakhouses in the less fashionable parts of the city. Soon they were both itching for the respectability that a Manhattan address would confer, and Rubell realized that their profits would be bigger if they cut out the food and concentrated on alcohol sales. They bought a building at 254 W. 54th St. that had once been used as a television studio by CBS. An expensive renovation, pushed by Rubell and fretted over by Shrager, included hanging a huge man-in-the-moon over the dance floor. When a large hanging spoon came to rest under its nose, the man-in-the-moon lit up. They christened the club Studio 54, and the doors opened on April 16, 1977.
From the beginning, Shrager stayed in the background, in his office with the books, while Rubell pampered and partied with superstar guests like Andy Warhol, Liza Minelli, Michael Jackson, Mick Jagger, Elton John, Truman Capote, Sylvestor Stallone. Almost overnight, Studio 54 became the hottest disco in New York, and to people in every corner of the globe it symbolized the decadence and hedonism of the "Me" Decade. Rubell guarded Studios door like a hawk, only letting in those he deemed glamorous enough. He also strove to find the perfect combination of black and white, straight and gay what he called mixing the salad. He was often rude to people he felt werent trying hard enough, saying things like, Go home and change, or simply, Youre ugly. But few wanted to argue with success; in its first year, Studio 54 made an estimated $7 million.
Both Rubell and Shrager believed that one had had to spend money to make money. They lavished their celebrity friends with gifts and parties, thus ensuring that the little people would keep coming to see them, and keep spending their money. For Bianca Jaggers 30th birthday, a costumed production number was put on by the staff and professional dancers, and for the finale, Bianca came riding out on the stage atop a white horse. When Rubell was stumped as to what to give Warhol for his birthday, he stuffed a garbage can full of dollar bills and presented it to the artist. Far from being insulted, Warhol said it was the best present hed ever gotten.
The high times didnt last long. Shragers mismanagement and Rubells drug problem caught up to them in December 1979, when fifty agents from the Internal Revenue Service Burst into Studio 54 with a warrant. Garbage bags full of cash were found stuffed into the insulation, or just lying around. The meticulous Shrager had made a note of every gift given to every celebrity even if that gift was cocaine or amyl nitrate poppers. The pair was sentenced to three-and-a-half years each, but wound up serving only thirteen months due to a deal with prosecutors. On their release, they went back into the nightclub business, opening the highly successful Palladium, and began buying and renovating hotels. It was especially hard for Rubell, though, to forgive those friends who had turned their backs to him when he was down.
Steve Rubell died of hepatitis and septic shock in July 1989. Ian Shrager has made a fortune in the hotel business and continues to lead a quiet, private life.
