The Maloof family, who own the Sacramento Kings, has lost majority control of the Palms Casino and Hotel in Las Vegas, according to the Wall Street Journal. In a debt restructuring, the Maloofs' ownership stake in the popular hotel dropped from 85 percent to 10 percent. The Palms is seen as the Maloof family's main business; the family sold its long-held and reportedly lucrative beer and spirits distributorship in New Mexico -- the foundation of the family business -- in 2009.
Sacramento Kings’ Maloof Family Loses Majority Control Of Palms Casino
In April, the Maloofs attempted to relocate the Kings to Anaheim, blaming failed attempts to get a new arena built in Sacramento. The NBA worked with Sacramento city officials and business leaders to reboot a local arena attempt, and after three months of relocation rumors, the Maloofs announced they would stay in Sacramento for one year to try to work out a plan.
The Maloofs have repeatedly insisted that they are not interested in selling the Kings, and -- despite reports of massive debt issues leading up to today’s news regarding the Palms -- maintain they are in good financial standing. But if that’s a bluff and the money problems continue, the Kings are the last major business they can cash out in. (The family is a substantial shareholder in Wells Fargo, as well.)
For more on the Kings, visit Sactown Royalty and SB Nation Bay Area.
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