Maloofs May Be Selling The Palms
This is crazy – I was just at The Palms last night hanging out with our friends from Klout at their CES2011 KloutUP (a great time by the way…). While there my wife and we were talking about how cool it was that, since we live in Sacramento we could also come out to Vegas and enjoy some Maloof Entertainment. The Maloofs own the Sacramento Kings too – if you didn’t draw that conclusion.
Well, to my surprise it appears that the Maloof family is selling a controlling share of The Palms Casino Resort.
Bloomberg News has reported, based on anonymous sources, that Leonard Green & Partners LP in Los Angeles and TPG Capital in Texas are mulling buying a controlling stake in the decade-old hotel and casino owned by the owners of the Sacramento Kings. According to the Bloomberg article, the Maloofs are trying to restructure the Palms’ debt.
The Maloofs have long insisted that the Palms and the Kings are separate corporate entities. But the family has often used the Palms as a marketing tool for the Kings, and vice versa.
The Maloofs imposed layoffs within the Kings organization and at the Palms in 2009. Early last year they sold their New Mexico beer distributorship, the original family business.
George Maloof said in an interview with the Sacramento Bee last fall that some of the $100 million-plus proceeds from the beer sale went into helping restructure the loans on the Palms. But the Maloofs have also insisted that the New Mexico sale wasn’t a sign of distress within their business empire.
As more information becomes available we’ll keep you posted.
[summarized from Bloomberg and sacbee.com]