Jun 15, 2011, 12:27 PM EST
The conventional wisdom has been that part of the reason the Maloof brothers worked so hard to move their Sacramento Kings to Anaheim was to deal with debt problems — they were so overrun with debt in other areas of their lives they needed to moved the Kings to a higher-revenue place.
That may not have been true — there were signs to the contrary — but it is all moot now. The Maloofs have wiped out their debt problems at the Palms in a deal with creditors, according to the Sacramento Bee.
The owners of the Sacramento Kings have surrendered controlling interest in their Las Vegas casino, in a deal that they say improves their finances considerably.
After months of negotiations, the Maloof family announced Tuesday that it has reached a “recapitalization” agreement with the Palms Casino’s main creditors, investment firms TPG Capital and Leonard Green & Partners.
Co-owner George Maloof said the deal erases the Palms’ debt but leaves the family, which built the trendy casino a decade ago, with less than 50 percent of the equity. That gives controlling interest to TPG and Green.
The Maloofs still have a share of and will operate the trendy casino.
What does that mean for the chances of the Kings staying in Sacramento? Hard to say, but if you believe that the Maloofs debt was the pressure forcing the move to Anaheim, then that pressure has been relieved. Which should give Sacramento a better chance. George Maloof told the Bee that the family is in a much better financial place now with this deal.
But it really all comes down to the plans and financing for a new arena. If that can get approved, in whatever form, the Kings will stay. If not, we’re all going to Disneyland.
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