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He's wearing bell-bottoms.

Hold it right there.

And he's chewing gum.

I'm not gonna be fake.
I come from Venezuela.

-More coming up over there.
-Okay.

-Let the black guy in.
-I think they should let all of us in.

Exit over there
to your right, please.

Yeah, let them in.

I will get inside.

What do you think
makes a place hot?

Like 54... What was the phenomenon
that it became international?

People flew in from over
the world just to go there.

What made it such a...

I don't know.
I, uh... You know,

in a club it's all about
capturing a moment.

When you walked through
those blacked-out doors,

you were in another world.

Anyone that was allowed in,

uh, was totally free inside.

Steve and I had no idea
what it would really mean,

or that it would last
only 33 months.

Just captured
everybody's imagination.

You could be next
to Elizabeth Taylor

or, uh, just about anybody,

uh, and feel wonderful
and good about yourself.

I love the nightlife,

and I love seeing people
have fun nights.

There's nothing
that makes me happier

than to see the people
having a good time.

Everybody that was there
was a star.

Thanks. That makes me
feel great.

It does, because so much bad

came out of it,
you know, for Ian and I

that it's good to think

some people
think of it like that.

The owners of Studio 54, Ian Schrager
and Steven Rubell...

Two dozen agents raided
the chic disco this morning.

It's up to ten years
in prison.

What was your reaction
when you learned

that your partner
had been arrested?

-I just go?
- Uh, yeah, try that.

Well, um,

you know, I was
wondering to myself why,

after almost 40 years,
you know,

I would finally feel okay
to talk about Studio,

'cause I hadn't talked
about it, you know, at all.

Now I'm at a point
in my life

that it doesn't sting as much

after all this time
the way it used to sting.

There's only two people

that could've
told this story...

Steve and I.

That's why I'm happy

to finally tell the story
as it really happened.

All right.

You haven't seen the book
in a few weeks,

so we should look
at everything,

and I have to ask you
a couple questions.

I never been in a room

with so many celebrities.

It was like numb.

So we need a picture here.

This one.

My friendship with Steve
was always very close,

almost from the moment we met.

We met in college.

We both came from Brooklyn,

middle class,

lower middle-class
working families.

Everybody upwardly mobile
and ambitious,

and everybody
wanted their kids

to do better than they did.

Brooklyn made me hungry.

My father was a tennis pro,
and I played tennis,

and I'd visit these estates,
and I saw how people live.

And you just see
this whole other life.

You were very well aware
of the difference

between what they had
and what you had.

Somehow tennis
expanded the universe,

and you saw that there
were other possibilities.

We chose,
as much as possible,

to try and pursue
those avenues of success.

In college,
Ian was very studious.

He wanted
to become an attorney.

And Stevie was
the social butterfly.

If you wanted to meet a certain girl,
you saw Steve Rubell.

If you needed to know
what courses to take,

you saw Steve Rubell.

He knew everybody
at Syracuse University.

Steve was the most
public of people,

but he, in fact,
was very private.

He was never open
about his sexuality

and the fact that he was gay.

It wasn't something
we talked about.

You know, it didn't matter.

Steve was an extrovert,
and, yeah, I am an introvert,

but inside, value-wise,
essence-wise,

you know, we were the same.

After we graduated,
I got a job as a lawyer,

and then Steve was working
on the steak restaurants.

Steve was very interested
in doing steak restaurants

in as many places as fast
as he could possibly do it.

He had expanded too quickly,
and they weren't doing well.

So I acted as his lawyer

and kept
the creditors at bay.

That's when Steve and I
became partners.

I was the one that wanted to go
into the nightclub business

because I smelled that there was
a real, you know, opportunity with it.

That ambition, that drive

really forged
a real bond between us.

Steve always felt
he had something to prove,

as I did.

From the beginning,

they had this
intuitive understanding

that they were getting out

and they were gonna do
something big together.

The Vietnam War ended,

and Watergate ended,

and everybody,
all of a sudden,

was tired of being concerned
about outside forces,

and they said,
"I want to have some fun."

They were tired
of being serious.

So everybody went out
and went wild.

We were going out to clubs
in Manhattan all the time,

and trying to figure out

what kind of club
we wanted to create.

♪ Makossa ♪

Gay clubs
were some of the first clubs

that had disco music.

But disco was black music,

and it came out of black clubs.

♪ Makossa ♪

The beautiful models,
the girls would go to the gay clubs

with the gay designers
and hairdressers and makeup men,

and then the straight guys
would want to meet the models,

so they would go
to these clubs,

and it all started blending.

For me, as a New Yorker,

I'm telling you,
this was revolutionary.

And it was the first time

that it felt like
people were nonjudgmental.

Everybody was fine
with everybody else's culture.

At that time, gay clubs were
behind closed doors, hidden.

It was a little bit like going to
a speakeasy in the '20s, I suppose.

It was subversive,

and there was
an incredible energy.

We wanted
to tap through the loose,

intense, sweaty, dancing fun
that was happening there

and take it up a notch...

to create
the ultimate nightclub.

Blow everybody away with it.

Dent the universe.
Change the world.

♪ Makossa ♪

Ian and I walked into this
old opera house and theater,

and Ian and I both saw it,

and we both went upstairs
and signed the lease.

And some people
said we were crazy

'cause we were on 8th Avenue

and 5th and 4th when
the West Side was nothing.

In those days, it was not.

And Mayor Beame said he's
gonna clean up the streets.

We're still waiting.
It's very dirty.

I'm living here many years,
when I remember

when it was beautiful,
and now it stinks.

54th and 8th
wasn't Disneyfied yet.

It was really
a very sleazy neighborhood.

Perhaps the sleaziest
neighborhood in the city...

the West Side
and the Theatre District.

If you wanted to get mugged,

that was really
a good place to go.

It was amazing that anyone
would think of opening up

a discotheque
on West 54th Street.

In the '20s, it was built
as an opera house.

And then it used to be
a CBS television studio.

And there were some really
big-time shows that were there.

Time now for everybody's
favorite guessing game...

Uh, What's My Line?,
Captain Kangaroo,

The $64,000 Question.

I mean, these are big-time
television programs.

They had all moved to L.A.,

and it sat empty
for a long time.

This is around the 40th
anniversary of Studio.

It seems like yesterday to me.

Now there's a sloped floor
here for the theater,

like there was when we
were here 40 years ago.

But, you know, you can't have
a sloped floor and have dancing.

So we had to level it off.

And we didn't
have enough time

to get a building permit
to do it.

We had to just start working
on it immediately.

So we said,
"Just go ahead and do it."

We had a guy

on a tall ladder
with a paintbrush...

Yeah....that was maybe
30 feet long...

Right. Right....and he was painting
the ceiling.

And someone kept
moving the ladder.

Yeah, I worked 30 hours
straight right up to the opening.

Yeah. And it was that kind
of unbridled energy,

you know, that got this whole place
built in six weeks.

We were competing against

what probably is the best
nightclub people in the world,

and wanted to have
the best of those clubs.

First, we went
to the usual suspects.

They said
they couldn't work with us

'cause they were told not to
by our competitors.

So, it was out of that problem

that it went to Jules Fisher
and Paul Marantz,

Tony award-winning
lighting designers.

The theater part
was already there,

and we made as much use of it
as possible,

which turned out
to be a very good idea.

And the people we hired to help us
were mostly coming from the theater,

'cause this was all at the speed
of a theater production.

We were hammering and nailing,
we were working there,

we were wiring, we were doing
everything... I don't know...

with no unions, no nothing,
you know?

I remember I was even
a little bit afraid,

because we had to
have people back here.

They were paid $65.00 a night.

That was a lot of money,

and I was afraid
it was gonna impact the margins.

And I didn't want
to have anybody back here.

You know,
even having a lighting guy.

Up to that point,
no nightclub had a lighting guy.

The DJ did the lights.

He played the music, and then
he played with the lights.

There was nothing like it. So,
we had a DJ, we had a lighting guy,

we had two guys
on a fly reel back here.

Like, we had four people
in that thing.

♪ Shoot me ♪

There's still some old CBS
residual stuff around here too.

CBS left a lot behind
that was just lying here for years.

What we tried to do was keep it
in the context of a theater.

All the lighting...
Everything was designed...

The rawness of it,
the seeing of the lights...

It wasn't designed
to be just pretty,

it was designed
to be a theater.

There was just
a tremendous amount of detail

that went into the band floor.

And, of course,
all the interior design.

You know, we just...
we had to race ahead

and were doing everything
instinctive.

Making the club was Ian's job.

Steve did not get involved
in this kind of stuff.

But they were both engineering
this whole process

of getting the right crowd
in the club.

♪ Ooh, ahh ♪

♪ Ooh, ahh ♪

Ian and Steve
shared the same office,

and Steve was always
laying on the couch.

They were making deals
and calling people,

and they were
sending limousines,

they were inviting
all the important big names.

We were also sending out
thousands of invitations.

All those things contributed
to the groundswell, the buzz.

♪ Ooh, ahh ♪

♪ Ooh, ahh ♪

In the crush of everything
that was going on,

it was impossible to get a liquor
license in that period of time.

And matter of fact,
we kind of forgot about it.

It got lost in everything.

So we thought we would
go up and get a series

of one-day catering permits.

And so we called our company
the Broadway Catering Corp.

This is the first article
ever written on Studio.

This is Deana Winterpiece.

"'Then we saw this',
said Steven Rubell,

"leading a tour around
the forgotten theater that is,

even as we write, becoming New York's
newest discotheque."

How much did it cost?

400,000. I remember that.

No, it was more,
because we... No.

...we owed him money.

-We owed him money.
-How much?

Probably another
350,400,000.

Yeah, it was close
to 700,000.

-Are you sure, Jack?
'Cause I always remember 400.

-Um, yeah. Yeah...

Who did you owe money to?

To the contractor.

And, you know, that made me nervous
because I was on the hook.

You guys weren't.
We didn't have anything.

Jack, why did you do this?

Steve and Ian had a club,

Enchanted Gardens,
which is where I met them.

We had done
a bar mitzvah for him.

And I think at that time,
it was the first time

that anybody had actually
done a discotheque for a, uh...

-Bar mitzvah.
-For a bar mitzvah.

Enchanted Garden
was the first nightclub

that Steve and I did.

It was a club
for the kids in Queens.

The first night,
Steve went to the bar

to hang out with the people,

and I went up in the DJ booth
to play with the lights.

It's not over yet.

Our fabulous band
from Fiorucci

are gonna give you
a couple more treats,

and then we hope you'll
join in and dance with them.

It was at the Enchanted Garden

that we started to throw
these extravagant parties.

We learned the business

and got our feet wet
in Queens.

But we always wanted to do

a nightclub in Manhattan,
which was the big leagues.

As of tonight,

the disco-goer
becomes the performer.

During the night
you'll have sunsets, sunrises,

fog machines, snow machines,
wind machines.

There'll be a tornado about
1:30 at night to get the people...

Every night at 1:30,
there's gonna be a tornado.

Right. Tonight at 1:30,
there'll be a tornado.

Where do you take shelter
around here?

Oh, we hide upstairs
in the balcony.

You can also retreat
to the balcony

if you don't want to become
one of the performers down there.

In fact, they encourage you
to come up here,

whether you come up here
to spectate or not.

They give you
these binoculars.

Kristy Fair,
Channel 11 Action News,

on the balcony,
out of the act, at Studio 54.

We had everything
riding on this club.

If it was a failure, it would've been
a very, very big failure.

And if it was a success,
it would've been a big success.

The opening night,
there's a mob scene.

It was almost impossible
to get close to the door.

We didn't have the velvet rope
all stretched out.

And we didn't have
adequate security.

We had to take all the rest of
the security that was in the place

and put them out front.

And we were afraid that they
might break the door down.

All right, please,
everybody back up.

At first, I was
hired as security,

but that first night,

Steve put me outside
the front door,

and I was out front
from day one.

And Marc Benecke
became the doorman

only because
he was the better-looking

of the rest
of the security guys.

I'd never worked
at a nightclub before.

I, you know, just had to...
I had to just kind of wing it.

It was really beyond crazy.

I remember getting
past the doorman,

and there was a carpeted...

Looked like almost a runway.

And it was mirrored.

The coatroom
was to the right.

I just remember hearing the music,
and I threw my coat.

The coat check
was so out of control.

I just started
giving people tickets.

We were hanging coats
or putting coats...

Then we're just throwing coats
on the floor.

Like, hundreds of people must've
lost their coats that night.

It was...
It was total pandemonium.

Boom, boom, boom.

The sound of the music
down the hall.

There was a rush to get
to the dance floor. Just a rush.

The full blast of the sound,

you know, just came over you
in a big wave.

♪ You make me feel ♪

♪ Mighty real ♪

♪ You make me feel ♪

♪ Mighty real ♪

The amount of drugs
was profound.

You know?
And they were all uppers.

No one was on a downer
that night.

♪ You make me feel ♪

It was carefree.
It was hot. It was sexy.

♪ Mighty real ♪

♪ Make me feel mighty real ♪

Something happened from that
first night opening party.

The message was sent out.

It was like, poom,
this was the spot.

♪ I feel real ♪

They invited the people

that everyone else wanted
to be in a room with.

♪ You make me feel ♪

♪ Mighty real ♪

♪ You make me feel ♪

♪ Mighty real ♪

♪ Oh, you make me feel ♪

♪ Mighty real ♪

♪ You make me feel ♪

I was absolutely shell-shocked.

Steve was only 33,

I was 29,

and we had this massive hit.

We were on the front page
of the New York Post.

No other place had ever
gotten that. None.

It was like a dream for us.

Then it was just a question
of, uh, feeding the monster.

Who, me?

I think they wanna get
out of the cab.

Get them out of the cab.

Oh, you're not shaved.

There's no way in a million
years you're gonna get in.

-Every... -It doesn't matter.
You're not shaved.

-Listen, just go home.
-Over here!

I'll try
as soon as some leave.

-Marc, check that side.
-Right over here.

Can you put the lights
down a little?

I can't see some of 'em.

This is the scene

outside a New York disco
called Studio 54.

This is the place that's in
with the disco crowd.

Except that these people
are still out.

Of course, Liza Minnelli
and her kind of celebrities

sweep right through
the protective ranks of doorkeepers.

The ropes came about

because there were prostitutes
on 8th and 5th and 4th,

and in order to keep them out,
we put the ropes up.

And the ropes became
part of the game.

Steve!

Now, you only
admit celebrities?

No. No.
We admit everybody.

How do you choose?

What are your criteria
for admitting someone?

Really fun-loving...

We want people who are just
in there to have fun

and not get heavy
with each other.

-People come there to relax.
-You favor couples versus singles?

We... Couples, gay people,
you know?

Going out in those days,

it was all about ego.

This was one's lifestyle.

If you didn't
see somebody at Studio 54,

it meant they couldn't get in.

And what did that mean?

Pfft!

Every night, there
would be a guest list

that would be
for the front door.

There'd be somebody's name
on the guest list,

then the next column,

there would be "pay,"
"comp," or "NFU."

And "NFU" meant "no fuck-up."

That meant that Marc
had to let them in.

We had "GN,"
which really meant "NG,"

which meant "no good,"
which means if they were no good,

you don't have to let them in.
Celebrities...

Some celebrities get special
treatment, others don't.

-Do they get in for nothing?
-Most of them do, not all.

-Mick Jagger and Keith Richards,
of course, would get in.

But some of the other Rolling Stones
actually had to pay.

Friday and Saturday night,
you know,

the so-called bridge-and-tunnel crowd
used to come in.

They didn't get
into Studio 54.

They probably did go
to New York-New York,

and Infinity, the Ice Palace,

you know, Hurrah's,
and other clubs like that.

But they weren't
coming to Studio 54.

Steve is the one who came up
with that term "bridge-and-tunnel."

You know, it was his way

of explaining that
we didn't want people

with the polyester shirts,
gold chains.

"Polyester melts
under the lights."

That was, uh...
That was one we heard a lot.

He would split up couples.
He would say to the girl,

"You're really beautiful.
You're in,

"but your boyfriend's
gotta go home

and change
into a cotton shirt."

And would you let yourself in
wearing a shirt like that?

This shirt? Yeah, this is
a good one to let in...

these Hawaiian shirts.
Uh, good one. But, uh,

I don't know if I would've let
myself in when the place started.

I doubt it really very much.
If somebody else was to...

No, actually,
it isn't like that.

The only thing that
it's not based on is money.

Has anybody ever offered you sex?
Oh, yeah.

-Do you take it?
-Depends on the offer.

But they have to be hot enough
to get inside first.

Because if they weren't, then that
wouldn't be a problem anyway.

-So it doesn't matter.

If you look at the photograph,

it's a more
slightly hopeful throng.

You see
an occasional waved hand,

a little grin trying to catch the eye
of Marc Benecke or Steve.

It's like the damned
looking into paradise.

I don't know. Last time I was here,
I got in right away.

So I don't know. I guess they either
like the way you look, or they don't.

If I knew what their policy was
and how they selected

those who are permitted
entrance to the inner sanctum,

I might even alter
my personality, my dress,

in order to pass inspection.

But they, apparently,
keep it a secret.

There was a passion to get in,

and a resentment
and a hatred if you didn't.

We didn't care.
We just wanted the success.

Ian and Steve were
excellent at the PR.

Steve just loved
getting on the phone,

and talking to the press
and letting them know

who was there, what went on.

And we got more press
than anybody else.

Ian called me up and said,
"Let's make a deal."

And I would get paid
for wrangling the celebrities.

If I generated
PR around that person,

I would get $500
for the cover of the Daily News.

If I got them on the cover
of the New York Post,

it would be
an additional $500.

And then if I got them into
"Page Six," it'd be like 150.

So, any celebrity
that walked in

pretty much got on the cover of
the New York Post or the Daily News.

It was huge news.

Anything that happened there

was on the cover
of the newspapers,

was double pages inside.

And there were celebrities
there every night.

Everyone felt like
they had to be there,

or they were missing out.

There was this paradigm shift

away from reading about
crime and and sports heroes,

and people became fascinated
with celebrities.

It was the beginning
of the age of celebrity.

We were there
at the right time,

and we rode it
for all that it was worth.

The photographers we let in
were those that we could control,

that would play by the rules
that we set up.

Here's the Studio 54 box.

Here's some of the pictures
that I've taken.

This is a great shot
of, uh, Elton John

feeling the boobs of Divine.

I did miss Bianca, but I got
Dolly Parton kissing this horse.

In the limousine,
I got this great shot

of Liz Taylor in a limousine.

I call it "Fat Liz."

Here we have Truman Capote
with his robe.

And he had slippers.
I have another shot

with his slippers...
with his initials on his slippers.

There's Ian Schrager
at the stage door,

looking for an arrival
of a celebrity.

I don't know which celebrity
he was looking for.

But Ian was very nice.

He was an introvert.

He was rare, actually.

It was a rare time
I got that picture.

He didn't like publicity.
Like, you see,

here's a braggadocio.

Here's a braggadocio!

Steve Rubell!

Here I am.

Look at me.

He's there with the stars.
Big stars, small stars.

He wanted exposure,
and he got it.

He got a lot of exposure.
He's in the pictures.

What came first,

the photographers
or the celebrities?

I think the room,
and being an old studio,

an old theater,
and the lights, and...

That has a lot to do with it.
I mean,

you have to build
a nice mousetrap

to attract the mice.

Steve really took care
of these celebrities.

He became very friendly
with fashion designers like Halston.

The press actually
came up with this phrase,

"Halston-Liza-Bianca-Andy,"

with hyphens
between the names.

It was like a unit.

They were the core group.

Studio got so much publicity

that it made
all of these people

more of household names.

-Hello, Steven.
-Hi.

I go out of my way to take care of them,
make them feel comfortable,

honestly, 'cause
I get off on it myself.

This was really his dream.

His dream was to be the best
friends with everyone he saw

in the newspapers
and in magazines growing up.

And they were.

Hi, Michael. Come on in.
You can come right in. Hi.

-Hi. Hi.
-How are you?

-You just walked in?
How are you? -Yeah, I did.

-Michael, this is Jane Pauley.
Come sit over here.

-Excuse me. Whoops. Can I?

-Hi. Fine. -How do you do,
Michael Jackson?

Good to see you.
Come here a lot?

Oh, God, yes. Because, well...
Why?

I like the atmosphere
of Studio 54.

I've been to a lot
of discotheques,

and I don't like them,
honestly.

What's the difference?

All around the world,
I've been...

I don't know. The feeling...
I mean,

the excitement of the props
coming down, and the balcony...

It's just exciting.
Honestly.

People take good care
of you here?

-Yes. Steve's very nice.
-What's Stevie like?

He's one of my favorite people
because he's genuine,

and for real and honest.

And that's
what I like in people.

When you hear the name
Studio 54, what does that do?

Does it... your pulse quicken,
and your feet start moving?

Yeah, I'm ready
to have a good time.

It's where you come
when you want to escape.

It's really escapism.

That's what I try to make it
be, too, is escapism.

In other words, people who have...
whatever hassles they have all day,

they come here, and they can forget
about them. -That's right.

And they can come here
and just be yourself and dance.

When you dance here,
you're just free.

You dance with
whoever you want to.

You just go...
I mean, you just go wild.

There aren't that
many times in life

where you're absolutely free.

Everybody felt
protected and safe.

You felt like you were in a place
where you could relax.

You saw gay men kissing
for the first time there.

And celebrities
with gay men.

And people didn't judge.

You could be who you are
when you were there.

The lighting and everything... I mean,
it makes you feel sensuous.

All this going on
and drinking

and thump-thump-thump music

and beautiful people
everywhere.

It makes you
want to feel like that.

I was wearing
lingerie and heels,

and I could
go to the dance floor,

and I could dance
with everybody.

I'd float on the dance floor
and dance with...

They were all my friends.

I mean, I didn't know them.
They didn't know me.

But they didn't care,
and I didn't care.

So that's how we danced
at Studio.

We danced with
the entire club.

Disco was a haven

for, you know,
inclusion and acceptance,

and that the street wasn't.

Out on the street,

homophobia existed
much more than even today.

Transgenders took
their lives in their hands

walking down the street
in New York City.

But as soon as they stepped foot
into the disco, they were safe.

And not only they were safe,
but they were included,

they were accepted,
they were part of the scene.

Do people ever insult you
or are rude to you?

-No.
-No, they're petrified.

They think we escaped
from a Broadway show.

Basically, New York
people are very open

and very courteous
and kind.

No. No, that's not true.
Only at Studio.

-We truly feel at home here.
-Yeah. Yes.

We pay rent, sort of.
$14.00 is rent, I think, you know?

At Studio 54, gay energy
was bigger than life.

The influence filled the room
and filled the space.

The mantra at Studio was
you were in a fantasy

and you could be anyone
you wanted to be

for that moment in time,
and people did.

♪ All that love
and affection ♪

Thank you, Rollerina.
I really needed that.

Rollerina was
a Wall Street banker by day,

a fairy godmother by night.

Disco Sally was a lawyer,

and she was
about 78 years old.

I was against Disco Sally
at the beginning

'cause I thought the whole thing
was kind of gimmicky.

And Steve's like,
"No, no, you're wrong. You're wrong.

This is good for the club.
It's good for the club."

Potassa, who was, like,

the most fabulous drag queen

of that whole era.

She was 5'11" out of shoes,

and 6'6" in shoes.

And you never, ever, ever,
ever, ever saw her out of drag.

And she'd hold center stage
when she wanted to.

What's really beautiful
about the Studio...

the combination of people.

If you put just the beautiful people
so close together,

then they... they are used
to seeing each other.

They might even
get bored of that.

But if you mix them properly,

which was the case
of the Studio,

with all
the bizarre characters

and the transvestites,
and all that,

they like the combination.

I think it was
a wonderful cocktail.

That diversity created
this combustible energy.

It was tribal almost.

That wild abandonment,

that freedom
was all a part of it.

It was like
an adult amusement park.

They had a real sense
of what people wanted.

You know? Adults wanted.

♪ Ahh, my baby's baby ♪

♪ Oh, my ♪

♪ My baby's baby ♪

In the '70s, there was this
kind of window of opportunity

between the invention
of the pill

and the advent of AIDS.

So, even if you
weren't promiscuous

or sleeping with someone
different every night,

you felt like you could.

You know, love was in the air.

Sex was in the air.

♪ Fly, robin, fly ♪

In the balconies,
it was dark.

People would make out, and maybe
somebody would give somebody a blow job.

♪ Fly, robin, fly ♪

Same thing in the bathrooms.

♪ Up, up to the sky ♪

There were mattresses
in the basement.

And I went down there

and slept with
a lot of people. A lot.

Gay people had the advantage

because no one was getting
pregnant. So, basically,

you could just go out there
and have a blast,

and you could have sex
as much as you want,

and there was no
repercussions.

And why not?

Because you're
supposed to now.

It's all about freedom.

You could try anything.

Steve had this huge coat

that he would wear
a lot of times,

and in that coat
was money and drugs.

And it was like
Daddy Warbucks.

Steve was big on Quaaludes,
to be quite frank about it.

He loved giving out the Quaaludes.
If you said, "Steve,

I don't want a quaalude,"
he'd say, "Oh, just take a half."

Oh, I don't think
you're a priest, are ya?

You're too much
of a bad boy.

He always wanted to get the party
going to another level.

You can say
higher and lower,

and I'll leave that
open to interpretation.

Everybody, come on!

You think this happens anywhere else
in the world?

-No.
-No, I was all over the world.

I'm happy.

The music, the lights,

supple-bodied young waiters
dressed in nothing but shorts,

and drinks at
one pound fifty a glass.

The formula has made the owner
a very rich young man.

He enjoyed every night.

I mean, Steve probably
had more fun than anybody.

And the environment
we created allowed him

to be comfortable
and accept his sexuality,

maybe for the first time
in his whole life.

He was in his element.

To me, it was different.

I didn't want
to walk through the crowd

and have to be poked,
people say hello.

All the time
that Studio 54 existed,

you rarely saw pictures of Ian
or read anything about Ian.

Ian was behind the scenes.

But he was the brilliant mind

and designing in a way
that had never been seen.

People were just obsessed

with what he was
gonna do next.

There was a theatrical
quality of the place

that I'd never seen before.

It was an experience.

Touching, like, pretty much
all of your senses.

It's a visceral business.

You have really
no discernible product

except the magic you create.

The moving of lights and sets
and changing the environment

from one second to the next...

that had never
been done before.

Ian really created
a world of fantasy.

It was the transformation
of individuals

into this sort of group energy

that absolutely exploded.

Ian really is a genius for
creating experiences for people.

We went right up to the edge

in every single aspect of it.

Building code, modalities,
taste levels, social morays...

everything,
right up to the edge.

It would cost as much
as 40,000 or $50,000

just for the one night.

We wanted to break down
that barrier

between the audience
and the performers

and introduce the idea
that anything could happen.

And it did.

Everybody who worked there
knew we were cast members.

We were putting on a show,

and everybody had to give
an incredible performance

and give an incredible service.

I was addicted to Studio 54,

without any question.

I had to go there every night,
and so did a lot of people.

Studio 54 is probably the Mount
Olympus of the disco world.

Right now, it is the center
of the universe

for those who dance
to 125 beats a minute.

Studio 54, the definitive disco
here in New York City.

We were so excited,
so high on the success,

that I would count the money
at night, which I enjoyed.

You know, dump the money
out of the bag,

kind of arrange it,
and then split it up in...

You know, and I
would make three piles,

and bring in a pile for Steve
and a pile for Jack.

One thing that I think,
if you hung out there,

you did notice
was that they changed

the cash register receipt roll
in the middle of the night.

That began to get out.

People began to notice that.

It was about the exhilaration

of having this great success,
our life's dream.

We had the best crowd
in the world.

We had the best press.
We had the best club.

We were number 1.

Suddenly on top of the world.

They were living
in a dream, practically.

It was becoming so much fun

that they were losing touch
with reality.

I was up in my office
with a girl,

and I heard the music stop.

Well, I walked downstairs,

and Steve
was already over there.

You're encompassed in this little
world, and all of a sudden,

the lights went on,
and the police are there,

and it was like the reality
was in your face,

like holy shit.

And we were both under arrest.

We still didn't have
a liquor license,

so we were getting
catering permits every night.

But, you know, at a point in time,
they're like,

"Okay, why are these guys coming
every night for a catering permit?

They're a nightclub,
and everybody knows it."

Okay.

Roy Cohn was our lawyer
at the time.

I had called him,
and, uh... to help us.

Their lawyer was Roy Cohn,

and I knew he was also
an attorney for Mob guys

and heavy-duty people
in Manhattan.

That kind of
made sense to me...

that there's a reason
they're not afraid of much.

After a few hours,

we were released.

We were able, you know,
to keep the place open

for six months with no liquor.

Then we finally
got the license.

I have a picture
of me and Steve

holding the liquor license
when we got it.

And from that moment on,

we felt like
we conquered the world.

They thought
they were so important

that they could do anything.

But people started to get angrier
and angrier at Steve Rubell

and at Studio 54
because they couldn't get in.

-One day, I'll be a star.
-They won't let me in.

You can't have
this much popularity

without somebody somewhere

being envious
or wanting to take it down.

I mean, it's human nature.
It's just the way life is.

The Dan Dorfman article,

Steve said,
"Only the Mafia does better,

but don't tell anybody."

Part of Stevie
was a braggart, you know?

"Look what I'm doing,
I'm having the best time,

and we're making
tons of money."

He was very proud about that.

I thought it was the stupidest thing
I'd ever seen.

And when I called him, I said,

"You're asking the IRS

to just come knocking
at your door."

And he said, "No, no,
no one's gonna bother me."

Close to two dozen IRS agents

raided the chic disco
this morning,

armed with a warrant
to search and seize

any and all records relating
to the club's finances.

We got raided
on December 14th, 1978.

December 14th...
that was just a terrible day.

The Studio 54 case began
with an allegation

of a gigantic
skimming operation,

that there was cash
and drugs hidden

at Studio 54.

One of the cleaning guys
called me and said,

"There's some guys here,
and they have warrants."

So I called Steve.

Steve said there were
some Quaaludes in the safe,

and if I can run over
and see if I can get them out.

But I ran into the Feds

while I was in the basement,

and they said,
"Are you the manager?"

I said, "Yeah." And they said,
"Well, come on, open the safe."

27-42-37, da, da, da.

Two this way,
one this way, one this way.

Clink, ploomp, and open.

They said,
"Is this everything?"

And that's when I said,

"Well,
there's a couple of boxes

up above here too."

First of all,
I tried to open the door,

and somebody pulled it back

because they were
already in here.

Yeah.

So I put my key in
and tried to open it.

Then they pulled it back.
And then eventually,

the federal marshal,
whatever, just opened it.

This is 9:00 in the morning,
by the way.

Federal marshal opened it
and said something...

"Do you wanna come in,
do you not wanna come in?"

So I came in. I had all my papers
with me like I normally have.

I put them down on the floor,
then I walked in.

Ian Schrager, one of
the owners of Studio 54,

entered the club
some time later,

and agents say

that among his records
they found cocaine.

It wasn't in my books.
It was around my books.

And then they came in.
I put my books on the floor.

Maybe it was left from
the night before. Who knows?

The field test kit

showed positive presence
of cocaine.

Not only was it positive,

the thing was off
the charts, pure.

It looked like it had
been cut right off the key,

as they say
in the narcotics business.

If you're going
to walk onto the premises

that are being searched
by 50 IRS agents,

with cocaine under your arms,

don't walk in.

-I was arrested, and

my first call
was to Roy Cohn's office.

And he came down immediately

and advised us

to overturn all
the furniture in the office

and make it look
like the agent

turned everything
upside down, like a Gestapo.

They even ruined
my birthday presents.

And it got everybody

even more pissed off at us

because it wasn't true,

and they said
they were very careful

to keep everything very neat.

That kind of started

the litany of mistakes
we made in this thing

because that made
the front page

of the Daily News.

I don't think we realized

the, uh, the seriousness

of, uh, of what we got
ourselves involved with

because we're getting away
with everything.

And they were interviewing Ian.

Ian was sitting in a chair
with the chair turned around,

leaning on it like this.

Like, defiant.

Kind of like, with, like,
"Fuck you."

You think he'd be scared,
but he wasn't.

He was... He was pissed.

Seven hours after
the raid began,

co-owner Steve Rubell emerged
with lawyer Roy Cohn,

-who blasted the IRS.
-...publicity stunt...

Well, you tell me one other
instance in American history

when 23
Internal Revenue Agents

at the beginning
of an investigation,

before they even go to a company's
accountants or lawyers,

come in and raid a place,

tear it to pieces,
open up everything in sight...

Uh, if that's ever happened
before in America, I've never seen it.

But what was it?
Was it cocaine?

What does it look like
inside right now?

It was not in his briefcase.

They do not allege
it was in his briefcase.

I've read the complaint, and I was
in court, and you weren't.

-Steve, what does it look like inside?
-Wait a minute.

We have to fight
to get a lawyer into this place.

I came in through the front door
to get in.

-The first time I had
trouble getting in.

One piece I billed him.

-That's a piece...
-One piece of the bill. Come on...

Steve, what is the reaction...

-What about the cocaine?
-I don't know anything about that.

I really don't know
anything about that.

Are there any other drugs
on the premises?

I don't know anything
about any other drugs.

Did you know anything about drugs
on the premises this time?

No, I didn't.
Absolutely not.

What was your reaction
when you heard

that your partner had been
arrested for cocaine?

I-I-I'm very fond of Ian.

We went to college together.
We met in college.

He's a good guy.
And of course I was upset.

Was coke use common
at Studio 54?

No, I like...
What Roy said...

I don't wanna
really comment

on anything to do with
that legal case of it,

but, uh, you know...

-What?

-Steve, look this way, please.
Thank you.

I feel like
the president today.

We had had
every great lawyer

working for us.

You know, we had had
one of the lawyers

that had represented
John Mitchell on Watergate.

We had James Neal,

who had sent
Jimmy Hoffa to jail.

We had had Arthur Liman.
We had had Mitchell Rogovin,

who was part
of Arnold & Porter,

where Abe Fortas came from,

and he was
a Supreme Court Justice.

We'd circled the wagon,

and we got ready
to fight the government.

There are, incidentally,
37 lawyers

working on behalf
of Schrager and Rubell.

When they were raided,

it was real Schadenfreude
here in New York City.

They'd finally got what was
coming to them, people felt.

They had their loyal friends,

but nobody was running around
with their head in their hands.

"Oh, poor Steve Rubell,
poor Ian Schrager"...

None of that happened.
People kind of liked it.

And now, following up
on the Studio 54 story,

is Weekend Update
correspondent Laraine Newman

outside Studio 54.

-Laraine?
-Thank you, Bill.

Standing next to me
is Steve Rubell,

co-owner of the club.

Steve,
what was your reaction

when you learned cocaine
had been found here?

I was shocked.

It was more of, you know,

taking on the institution,
taking on the system,

which was all part
of the Studio 54 mystique.

And I think everybody
rallied around,

and there was
a party after that.

The notoriety was like
a moth to a flame.

And everybody came,
and it got even bigger.

Which controversy,
uh, sometimes does.

A lot of people say,

"Well, Rubell was
shooting off his mouth

about don't tell the IRS this

and don't tell the IRS that."

That was not it.

This case came about

strictly because, uh,
an informant, who was

very unhappy with his
treatment at Studio 54...

and knew where
the records were kept.

The basement
had a drop ceiling.

And if you remove
the ceiling tiles,

that's where we found
the manila envelopes

that were, in effect,
the second set of books.

Also,
up there in garbage bags...

plastic garbage bags...
there was cash.

Absolutely never
any millions of dollars

in the ceiling of Studio 54.

That's, uh, just folklore.

They took down bags of cash,

which had been particularly described
in the search warrant.

It was, like, five
combinations, and you had to...

It's like, "Oh, man,
this is a pain in the neck.

The guys are all
dying for quarters,

so I'll keep the quarters
up top."

That's as simple as it was.

That was the "money
in the ceiling" story.

There was also cash

in a safe-deposit box
that belonged to Steve Rubell

that we got a warrant for.

We drilled the box.
We got cash out of there.

There was also cash
in his apartment.

There were secret doors
behind bookcases.

Steve had 900,000 in cash,
5s and 10s, stacked.

The Feds came,
took all of that.

I was driving around

with $400,000
in the trunk of my car.

It could've been stolen.
It could've been towed.

I mean,
I was parking in garages.

It was ridiculous.

At Studio,

Steve's mother
was the bookkeeper.

And Steve always had a budget
for recreational drugs.

He would give them for free
to certain people.

Steve's mother didn't know
anything about the drugs

and what the codes were,

but she knew where
every penny was going.

If there was $100 taken out

to get a celebrity
a drug or whatever,

it was recorded
as a "party favor."

So it had everything in there.

There was one envelope.

On the outside of the envelope
were three columns:

"Ian," "Steve" and "Jack."

And then there was
a fourth column,

which was the total amount
of the take for that night.

And then there was
a fifth column

that was labeled "skim,"

"S-K-I-M," or "SK."

So that you had a daily record

of everything
that they took in

and what they took out as skim
and didn't report.

Who created those books?

I didn't, uh, 'cause I
wasn't the bookkeeper

or taking care of the books.

But one of us did. I... I...

Who instructed that
those books be created?

You know, I... I...
I don't remember...

You sure you're not
a prosecutor here?

I, um...

You know, all I know was
that I got the benefit of it,

and I was a co-conspirator,

and, you know...

But, you know, the actual,
you know, workings and all...

I don't...
I don't know who did it.

In the 33 months
that they were doing it,

I think there was skim
of two and half

or three million dollars...

an astronomical amount
to skim,

which was ridiculous.

I mean, if you're gonna skim,
you know, skim 10% or twent...

You know, not 80%.

They were really, you know,
pigs about it.

Well, this was
the Richard Nixon of skims.

We just went way over
and way beyond, you know,

anything that was even remotely
possible to go unnoticed.

Steve Rubell and Ian Schrager

are totally
and completely innocent

of this claim
for additional taxes

or any kind
of evasion of taxes.

Cohn charges there was
only one partner to blame

for the troubles
of Studio 54...

that's the man
who keeps the books.

His name is Jack Dushey.

He secretly pleaded guilty

to charges last week,

and he now faces

up to five years in prison.

Jack Dushey agreed
to cooperate and to testify

against Rubell and Schrager
in the grand jury

and at the trial,
if one was necessary.

What happened
wasn't his fault.

He had a whole family.
He would've never done it.

-I never asked him that.
-No.

But that's what I've,
uh, always felt.

Were you...
Jack, were you resentful...

It was very difficult

to put reins
on the success, you know?

Who am I? First of all,
I was older than them.

And, you know,
I didn't need the money.

I wasn't doing it
for the money. But, uh,

this was
an overwhelming success,

so I wasn't about
to try to harness them.

And, you know, you know,
we all paid the price.

I mean,
but did you know

what was going on
in the counting house?

Oh, I was right
in the middle of it.

Yeah, I was right
in the middle of it.

I was just as culpable as,
you know, Steve and Ian.

But you seem so level-headed.

Why do you think
you let that happen?

Oh, the success.

-The success went to everybody's head.
- Yeah.

I was assigned

to the Organized Crime
Strike Force,

which deals mostly
with organized crime.

In particular, at that time,
the Italian Mafia.

The Studio 54 case...

there was a supposed
connection

to organized crime
through Ian Schrager,

whose father
was Louis Schrager,

also colloquially known
as Max the Jew.

I've always heard
all these things

about my father
in the newspapers,

and I didn't really know
anything about it.

I idolized my father.

I knew he was different
than other fathers,

you know,
with his hours of work,

and I was always concerned

that that would be
a problem for me.

I was always
very sensitive to that.

Louis Schrager,
who had died at the time,

was an old
Meyer Lansky associate.

But we never found
any evidence

that Studio 54
had a Mafia link.

I definitely think that Ian

didn't want any part
of his father's business

or connections or anything.

I mean, his father was
successful at what he did.

His father had power.

And I think
that Ian wanted power

and success
in a different area.

The three owners and the manager
of the Studio 54 disco

were indicted today
on charges of income tax evasion.

Steve Rubell and Ian Schrager

were slapped
with a 12-count indictment...

Now Ian Schrager
and Steve Rubell

face up to ten years in prison

and fines up to $20,000.

They had this ball of fire

that nobody in the world had.

They had this... this thing

that was worldwide popular

that had fallen
into their laps,

and I don't think
they wanted to lose that.

During one of the meetings,

the lawyers kept saying,
"Well, you know,

you have to try
and trade something."

It was August 25th.

I remember Steve telling me,

"I hope there's
a war in Iran."

I said, "What are you talking about?"
He said, "I just don't...

"There's a story
that's gonna break,

and I just don't
want it to be big."

The Justice Department

is investigating
an allegation

that White House Chief of Staff
Hamilton Jordan used cocaine

during a visit to New York's Studio 54
discotheque last year.

The White House
flatly denies the allegations,

saying the people making them
have a clear interest

in making false
and sensational charges

so they can bargain
for lighter sentences.

To accuse the White House
Chief of Staff

of asking to buy cocaine

in the basement of Studio 54...

I mean, didn't Steve realize

he now is gonna have
the White House against him?

I thought Steve better
be really careful.

These people are powerful.
He doesn't have any power.

He's a nightlife person.
His power is among celebrities,

it's not among the politicos.

He definitely messed
with the wrong people.

President Carter's
comment about Jordan was

"He will tell the truth,

as my wife would
or my children."

While
the Justice Department

would not ordinarily
pursue a case

involving individual use
of the drug,

it's compelled
to do so on this case

because of a new law called
the Ethics in Government Act.

That law grew out
of the Watergate scandals.

It requires an investigation
of up to 90 days by the FBI

when criminal allegations
are made

against high-ranking
government officials.

One of the lawyers,
Mitchell Rogovin,

made a really fatal mistake

and hurt us.

He didn't understand

how Watergate
changed the law.

It became very public.

The train left the station
and took a life of its own.

There was no turning back.

You saw, with your own eyes,

Hamilton Jordan
use cocaine?

Yes.

-No question?
-No question.

-No mistake?
-No.

We didn't
realize the magnitude

of what was going on.

We had this thing
of, you know,

"We'll get out of it.

"You know, we got Roy there,
but, you know,

we'll figure out a way
and get a way out of it."

We even went and did a major
renovation in the club,

like a signal to everyone...
it's gonna be fine.

What do you do

when you're under indictment
for tax evasion

and fighting Hamilton Jordan
in your spare time?

Well, you can
create a new image...

architecturally, at least.

600 workers
on round-the-clock shifts

have been laboring since last
Wednesday to put it all together,

and when they're finished,

it's expected to cost
$1 1/2 million...

three times what it cost

to open Studio 54
three years ago.

♪ More, more, more ♪

♪ How do you like it,
how do you like it? ♪

♪ More, more, more ♪

♪ How do you like it,
how do you like it? ♪

Ian had
all these magical ideas.

He'd seen Sweeney Todd,

and he got this idea
to do a bridge.

Tired of fighting your way

through the crowded
dance floor?

Well, this moving bridge

ought to be able
to solve that problem.

It can carry 25 tons in weight

and will be able
to move 250 people

over the heads of the dancers

to the other side
of the room

or to the balcony

at the speed
of 45 feet a minute.

Of course, the story goes

that they had to
cover the balcony

in rubber so they could
wash it down more easily.

Were you aware that you
were creating a sex pit?

♪...how I really feel? ♪

♪ Just get the cameras
rolling... ♪

Yes.

♪ More, more, more ♪

♪ How do you like it,
how do you like it? ♪

♪ More, more, more ♪

♪ How do you like it,
how do you like it? ♪

I love Studio 54 so much,
and I thank you

for making all my evenings
a lot more fun.

Ah, what can I say?

Oh, just say "thank you."

Plead guilty
to charges of flattery.

I don't plead guilty
to any charges.

Two owners

of the trendy Manhattan
discotheque Studio 54

pleaded guilty today
of defrauding the government

of more than $400,000
in taxes.

Today, Rubell
and his partner Ian Schrager

were charged with skimming
$2 1/2 million

from the receipts
of Studio 54

and lying about it.

12 counts in all.

They admitted
to two counts of tax evasion.

The government
dropped the rest.

We didn't want to plead
guilty to a felony

because you can't have
a liquor license

if you're convicted
of a felony.

So this whole thing
was to protect Studio,

but it just got
out of control.

We were out of our league,

and we were forced
to plea to a felony.

-Come on down a little bit.

Well, Roy,
did anything go wrong

with the plea bargaining?

Listen, when you have
about 37 lawyers

involved in anything,

uh, something's always
gonna go wrong.

-Steven...
-What made you do it?

Was it greed?

-Too much money too fast?
-No.

I made a mistake.
Did you ever make a mistake?

Why did you make
that kind of mistake?

Are you and Schrager
still friendly after this?

He's my best friend.
I love him dearly.

When we got in trouble,

the press,

you know, turned on us.

It was the first time,

you know, in my life
and in Steve's life,

we couldn't talk
our way out of it.

It was like
we couldn't shake it.

Things seemed to be
closing in on us.

When you go through
something like that,

uh, it either makes you
closer and stronger,

or it tears you apart.

In our case,
it made us stronger.

We rose and fell together.

A federal judge today

sentenced Steven Rubell
and Ian Schrager,

owners of the New York
discotheque Studio 54,

to three and a half
years in prison

for evading almost half a million
dollars in income taxes.

He also fined
each man $20,000.

It didn't hit me. You know?

There was a complete
emotional detachment.

I was numb.

Our life was over,

and we didn't even know.

The party, the night
before they went to jail,

was probably as exciting

and as much fun
as the opening party,

-It may have been more fun.

Andy Warhol as there,

Calvin Klein.

Diana Ross sang.

Liza Minnelli sang, too.

What I distinctly remember,
Steve was wearing, like,

a Frank Sinatra hat,

and they played
"I Did it My Way."

"My Way"...

What does that mean,
"my way"?

When I look back at it now,
it is so preposterous.

-What were we thinking?
♪ Don't leave me this way ♪

♪ Ahh ♪

♪ Baby ♪

♪ My heart is full of love
and desire for you ♪

♪ Now come on down
and do what you gotta do ♪

That night, the music
was still intense,

the dancing
was still intense,

and it was fabulous.

♪ Come on, satisfy
the need in me ♪

Partying that night,
I remember

all I wanted to do was dance.

And I was so high on drugs,

I really didn't realize
what was going on.

I mean, I didn't think
the party was gonna end.

♪ Ohh, baby ♪

That feeling of invincibility

permeated the whole process.

♪ Don't leave me this way ♪

♪ Don't leave me this way, no ♪

♪ Don't leave me
this way, no ♪

♪ Don't leave me
this way, baby ♪

♪ Don't leave me ♪

♪ Don't leave me
this way, baby ♪

It was enormous denial,

you know,
from beginning to end.

I'm not sure
I would've made a party

to celebrate the fact I'm
going to jail the next day.

I don't think
they prepared at all,

and I think it was
the actual going to jail

was just a terrific
shock for them.

Stand right there.
Thank you.

The owners of New York's

flashy discotheque
Studio 54

surrendered to federal
authorities today.

They reported this morning

at the Federal Metropolitan
Correctional Center.

Meanwhile,
the State Liquor Authority

has filed seven charges
against the disco.

What was that first night like

at the Metropolitan
House of Corrections

here in New York City?

Well, uh, the doors closed,

and when those doors close,

it's amazing how quickly

you, um, just realize
you lost your freedom.

There's nothing
worse in the world.

We didn't share a cell.

We were in the same jail.

And that's something
that we both wanted, obviously.

We couldn't guarantee that.

I don't know what it would've been if
I didn't have the benefit of having Steve there.

We were treated just
like everybody else, not unfairly.

-They didn't care
that you were with Liza... -No.

...and Bianca and all those stars?
-Oh, that's another world.

It's how it is.
You just have to learn

to keep your mouth shut
and not say a world.

If you say a word,
you're, uh... you're dead.

There was a guy that lived
across the hall from me

and who had killed somebody
with a bowling ball.

Um, and so
I right away thought

that was a good guy
to get friendly with.

I made a deal with him

that we would give his wife
money on the outside

and he would protect us.

You know,
it was just a base instinct

to survive in... in there.

After they went to jail,

we had another
couple of months.

But it was never the same
after, you know...

without Steve and Ian.

And then, when we lost
the liquor license,

there wasn't much
we could do.

It was in prison

that, uh, you know,
we sold Studio 54.

And I was negotiating
the contract,

and that kept my sanity.

But selling Studio

was the hardest thing
I ever had to do.

The whole thing,

it was like a vortex
of, you know...

It was all just
going down the tubes,

and everybody just faded back

to where they came from.

You really feel
like all these people

are really gonna be
your friends for life.

They love you. And then
you really find out,

well, that's really
not the case

at all, you know?

The phone calls stop coming.

The, you know, the, uh,

the invitations
to great parties stop coming.

All those things just stop,
and that was, uh,

that was, uh, that was
a rude awakening for me.

The disco era was over.

Disco music became a joke.

It was billed as Teen Night
at Comiskey Park.

The feature attraction was a disc
demolition between games.

Local radio morning man
Steve Dahl

is to lead
the crowd in song,

and then finish
by blowing up a box

full of disco records

which the fans
were to bring with them

to the ballpark.

"Disco Sucks"
was almost a backlash

against Studio 54, in a way.

You think about the economic
situation in America.

It was the worst
financial recession

since the Great Depression.

And you think
about what Studio 54

and what disco life
looked like

to somebody
working in the Midwest

who had now lost their job
and is never coming back.

You know, you blame it
on all these people.

You blame it on gay people,

you blame it on black people,
you blame it on women.

There was this
ground-swelling resentment.

People, you know,

were pissed off.

We upset the status quo.

We knew Rubell and Schrager
could help us

and could give us
more income tax evasion cases

against other people
that they knew

who were doing the same thing.

So we devised the great
Chinese food scenario.

The U.S. Attorney's office is
on the border of Chinatown,

and the IRS agents know
all the good places to eat, trust me.

So they ordered a slew
of different Chinese dishes,

and I had Steve and Ian
brought over,

and I had two chairs set out
just outside my office

so that the smell was kind of wafting
out into the hall.

And they're looking at it,
and they're...

you know, they're hungry.

We really tried everything.

We were under
all kinds of pressure.

The government
had all our records.

It isn't as if, you know,
we named names,

but we would've
had to perjure ourselves

if we didn't answer questions
about the nightclub owners

of Bonds, Infinity,

and New York-New York
at the time.

They were, like,
kind of our enemies.

You know, we, uh,

always suspected

that those guys were out
to hurt us anyways,

so it was a kind of...

easy way to rationalize that,
I suppose.

But my father
wouldn't have, uh...

have liked this.
-Why?

You know, because just,
that's not something you do.

You know, um,
do your time like a man.

Wouldn't be something
that he would, uh,

you know, want...
want... want me to do.

-And did that weigh upon you?
-Of course.

I had problems.
I still have problems,

and I'm still embarrassed
about it.

It's one of the things,

uh, I was hoping
you wouldn't get into.

But I, you know...

I, um...

It's, uh, just part
of the story, I suppose.

We couldn't stay in prison
for three and a half years,

so we did what we had to do

and got a reduced sentence.

When we got out of prison
in 1981,

it was
a whole different world.

Governor Reagan,
we just wanted to show you

what the map of
the United States looks like

as of 8:00 tonight.

-Hey!
-All yours!

You had a different
administration in the early '80s,

and suddenly it was
all about making money.

It wasn't about abandon,
it wasn't about equalization,

it was about massive,
obvious success,

and a dollar über alles.

Downtown became more downtown.

The Mudd Club
really became dominant

in protest against the yuppies
and the Reagan administration.

Getting out of jail,

we were both really,
really, really sensitive,

both unsure of ourselves.

You know, that's a devastation
that's hard to explain.

You lose everything.

You know,
I lost my law license.

I couldn't vote.

Even a driver's license,
your credit card...

So I'm disenfranchised.

It's... You know,
you don't realize,

till you can't,
what it means to you.

And the shame of it.
That was the real thing.

One of the things, I guess,
that's a little bothersome

is that there is no stigma

attached to the fact
that you did jail time.

Oh, but there is a st...
There isn't a day that goes by

when I don't think about it.

-Okay.
An emotional stigma.

It's emotional.
Until about a year ago,

I had dreams that I was on an island
and I couldn't get off.

And the nightmares...
I would wake up soaked.

-And, uh, it's something
you don't get over.

-Fair enough.

Steve was kind of tentative,
because he didn't know

the way people were gonna
be reacting to him.

Just that they didn't know

if they could trust him

after the Hamilton Jordan
and everything.

Yeah, the price of being
a success, you know, uh...

you know, is easy.

Price of being a failure
is difficult.

I went through both.

That was probably

the most difficult
moment of their life,

wondering if they
would ever emerge.

In a sense, they had
nothing to lose early on.

They had nothing.

Everything
was an improvement.

It was fine.

Coming back,
that was courage.

Ian's not gonna give up.

Stevie, in his own way,
isn't gonna give up.

They both had the same DNA

when they went in
and when they got out.

They'll take on
any challenge.

-And they did.
-I mean, I believe

they were plotting
a comeback in prison.

Of course.
The day they got in,

they were thinking about what
we're gonna do when we get out.

Despite Rubell's plans,

post-prison reality
was harsh.

It took three years

before the two could
find the capital

to finance
their next venture.

A string of luxury hotels
that cater

to the same
kind of eclectic crowd

that used to hang out
at Studio 54.

They immediately began

channeling their efforts

into purchasing
prime Manhattan real estate,

becoming part owners
in several chic hotels,

including the Royalton

and Morgan's Hotel
on Madison Avenue.

We wanted to be in
the hotel business.

But we had to prove
to the banks

that we could borrow
$14 million and pay it back.

So that was the reason

why we opened up
Palladium nightclub.

The bald, the brave,

and the beautiful
came out tonight

for the opening
of the Palladium.

It's an incredible thing
that with Steve and Ian

out of the picture
for six or seven years,

really nothing's

come along to replace them.

And now they're back

and bigger and better
than ever.

I had hesitations
about everything I did

because I had made a mistake,

and I had not felt
so great about myself

for a while.

I got a second chance,

and you couldn't
ask for anything more.

When we did the Palladium,

this was the first
press piece we got,

called "The Comeback Kids,"

where I came out
from the shadows.

The story was, uh...
as much on me

as it was on Steve.

Steve was a little bit
upset about it,

and the story
disrupted that balance

that existed between Steve
and I all those years

in terms of him
being out there

getting all...
all of the attention

and me being in the background
and not getting any.

It was a new dynamic.

I remember it took him
a little while

to... to... to get over it.

We should point out,
for better or for worse,

Studio 54 is no longer.

Yeah. I read in the paper
the other day

it was just closed, but...

-How'd you feel about that?
-Um, I...

You know,
I'm almost a little...

It's something of the past,

and I so do not want
to dwell on the past.

-Sure.
-The good or the bad.

I'm always futuristic
in what I can do next

and what opportunities
we can...

you know, that Ian and I
can come up with, and...

You know,
life is so exciting.

So how did you find out

that Steve
had contracted HIV?

I did a blood test.

Did you suspect that he
was becoming ill with that?

He had some symptoms.

Not of HIV, but there
were vague symptoms.

And I was the one
that told him he had AIDS, yeah.

You have to remember,
AIDS, at that time...

it wasn't a disease.

It was a condemnation.

And so he wouldn't let me
tell our parents.

He held it together, and...

I'm sure he didn't hold it
together after I left,

but he held it together.

Everybody was getting sick.

It was frightening, and...

if I'm still emotionally
affected by it,

the loss was profound.

All these young guys
were just fading away.

Half the bartenders...

you know, half the people
that did the sets...

the kids that painted,

they're not with us
anymore.

It was devastating.

The impact that these people
had on the community,

on the culture,
on New York City...

such an incredible loss.

Culturally,
it changed everything.

Steve was the kind of guy
that, you know,

if he did something
the night before

that might've been
a little embarrassing,

you would see him
the next morning,

and he would act
like nothing happened,

and get away with it, and that
would be the end of it,

whereas somebody
might come into the room

with their tail
between their legs,

terribly embarrassed.

So Steve was always able
to get away with it.

This one thing
he didn't get away with.

Steve Rubell
changed the look, the feel,

and the pace
of New York's nightlife

when he opened up Studio 54
some years ago.

Well, Rubell died this morning
here in Manhattan

from complications
of hepatitis.

Steve Rubell
died of complications

resulting from hepatitis
and septic shock.

Steve Rubell,

who died yesterday
of liver failure...

There were rumors
that Rubell succumbed to AIDS,

but the official word
is that he died

of hepatitis
and septic shock.

He didn't want the press

to put in the obit

that he died
of complications of AIDS.

That was kept out.

I wanted to,
you know, make sure

everybody came to the funeral

because that's what
Steve would've wanted

was, like, a big send-off.

So I was on the phone
making calls

to make sure everybody
would, you know, would come.

The funeral
for that people person

turned out the chic
of New York City society.

From Calvin Klein
to Bianca Jagger

to his partner Ian Schrager,

who, at times, looked shaken.

Losing Steve was like
losing a family member.

So it was
a very difficult day,

and a very difficult time.
I think it hit...

Every one
of our Studio family

who knew him
felt the same way.

After the brief service,

some from Rubell's past
said they saw his death

as emblematic
of the passing of an era.

He gave a magic
to the city,

and the city
always needs magic.

And it always finds
its, uh, marker,

and Steve was it
for an awful lot of years.

Steve Rubell dead

at 45.

Ann... Mrs. Rubell...
said to me,

"Why didn't Steve
ever get married?"

And I realized then
that I'm not sure

that she really knew
that he was gay.

That was part of that time,

that time
of maybe your mother

was the last to know.

Steve's death and his illness

had a huge impact on, um, Ian.

Their love for each other
and their bond was so strong,

um, that I think it...

it made an impact
for quite some time.

I met Steve...
I think I was 18 or 19...

and the friendship
blossomed right away,

and I was friendly with him

for all that time
right up to 1989.

I'm lucky that I had
one of those friendships.

Not many people,
you know, do.

Steve and I
bought this house in 1985.

Has a lot of history,
this house.

It's like a family heirloom.

For that,
it's quite beautiful.

How did
the death of your partner,

your best friend, affect you?

It was devastating.
It was a personal loss.

Steve and I were really
like husband and wife.

I'm not sure

which one was the husband
and which one was the wife.

We vacationed together.

We shared a house
on Long Island together.

We worked together. We...

He was the last person
I talked to

when I went to sleep.

And so it was a personal loss,

uh, uh, uh,
more than anything else.

On the business end of it,
the same passion

that drove me while Steve was alive
still drove me.

I had the same hunger.

I still have
that same hunger now.

And so we just continued on.

It's not as much fun.
It's not as exhilarating.

I don't have someone
to share it with.

But we just...
you know, you go on.

Did you ever doubt
that you could do it?

Of course. I still doubt it.
I think that's what drives me.

It's not a surprise to me

that through all these years,

Ian has evolved

and reinvented himself

and taken that core
of who he is

to where he is today.

I was trying to capture
energy in the hotels

in the same way
you might capture energy

on the streets of a city.

You know, there's an energy

that lifts everything,

a high tide that comes in.

That was the same thing
with Studio.

Studio just meant
everything to us,

what we had gone
through together.

Both of us ingrained

with that desire
to be successful.

I didn't get it as a lawyer,

and he didn't get it
as a steak restaurateur,

but we both got it
together with Studio.

What they created,

nobody has come near
since then.

You know,
there was a brevity to it.

There was a sense
of something lost.

Paradise lost.

I don't think they had any
idea what it would become,

that it would become
this world famous,

that it would be
important in our culture

and the history
of New York City

and maybe significant
in the history

of what was going on
all around the world.

Studio wasn't a nightclub.

It was like a kind
of social experiment.

And that's why it's never
been able to be recreated.

It was fun... holding on
to a lightning bolt.

♪ What's the sense in sharing
this one and only life ♪

♪ Ending up just another
lost and lonely wife ♪

♪ You count up the years ♪

♪ And they will be
filled with tears ♪

♪ Love only breaks up
to start over again ♪

♪ You'll get the babies,
but you won't have your man ♪

♪ While he's busy loving
every woman that he can ♪

♪ Uh-huh ♪

♪ Say I'm gonna leave
a hundred times a day ♪

♪ It's easier
said than done ♪

♪ When you just
can't break away ♪

♪ When you just
can't break away ♪

♪ Oh, young hearts run free ♪

♪ They'll never be hung up ♪

♪ Hung up like my man and me ♪

♪ My man and me ♪

♪ Ooh, young hearts ♪

♪ To yourself be true ♪

♪ Don't be no fool when love
really don't love you ♪

♪ Don't love you ♪

♪ It's high time now,
just one crack at life ♪

♪ Who wants to live it
in trouble and strife? ♪

♪ My mind must be free ♪

♪ To learn all I can
about me ♪

♪ Mm-hmm ♪

♪ I'm gonna love me
for the rest of my days ♪

♪ Encourage the babies
every time they say ♪

♪ Self-preservation is what's
really going on today ♪

♪ Say I'm gonna turn loose
a thousand times a day ♪

♪ But how can I turn loose ♪

♪ When I just can't
break away? ♪

♪ When I just
can't break away ♪

♪ Oh, young hearts run free ♪

♪ They'll never be hung up ♪

♪ Hung up
like my man and me ♪

♪ You and me ♪

♪ Ohh ♪

♪ Ooh, young hearts ♪

♪ To yourself be true ♪

♪ Don't be no fool when love
really don't love you ♪

♪ Don't love you ♪

♪ Ohh ♪

♪ Young hearts run free ♪

♪ They'll never be hung up ♪

♪ Hung up
like my man and me ♪

♪ My man and me ♪

♪ Ohh
Ohh, young hearts ♪

♪ To yourself be true ♪

♪ Don't be no fool when love
really don't love you ♪

♪ It don't love you ♪

♪ Ohh ♪

♪ Ooh, young hearts run free ♪

♪ They'll never be hung up ♪

♪ Hung up
like my man and me ♪

♪ My man and me ♪

♪ Ohh ♪

♪ Oh, young hearts ♪

♪ To yourself be true ♪

♪ Don't be no fool when love
really don't love you ♪

♪ Don't love you ♪