kings to be sold?

#3
I don't know but I maintain my firm stance that if the Maloofs would sell their business that is worth money to sink further into a money pit that will likely never recover they are morons.

And unless they had a special backroom deal with Samueli for more money to be directed to the Palms or a much bigger sale after the move the Anaheim deal doesn't really make sense as a move strictly for short term cash flow to sink into the casino either.

And $250 million seems a bit on the low end.
 

CruzDude

Senior Member sharing a brew with bajaden
#4
I would think Samueli would be a more credible buyer of an NBA franchise than a foreign investor who appears to be a group rather than one individual. He has wanted an NBA team in Anaheim for many years. I could even see Maloofs as minority owners as a win-win benefit for Samueli and Anaheim. Don't see any such possibilities in Sacramento area unfortunately.
 
#5
I don't know but I maintain my firm stance that if the Maloofs would sell their business that is worth money to sink further into a money pit that will likely never recover they are morons.

And unless they had a special backroom deal with Samueli for more money to be directed to the Palms or a much bigger sale after the move the Anaheim deal doesn't really make sense as a move strictly for short term cash flow to sink into the casino either.

And $250 million seems a bit on the low end.
It said "It’s not certain if the asking price of $250 Million will include the assumption of the Maloofs’ astronomical debts". So maybe taking on the 77 million owed to the city would be part of it.
 

Bricklayer

Don't Make Me Use The Bat
Staff member
#8
This sounds like a dubious/hopeful article from a foreign source excited (overexcited) about a local group owning an NBA team. In other words not necessarily credible.

That $$ figure attached to the Palms loan also seems high. At its peak the entire Maloof empire, Palms, Kings, beer distributorship etc. probably wasn't worth much more than that. I went looking for otehr reported numbers, and could have sworn there were some published back in the winter, but could not find any.
 
#9
The expansion that is killing the casino was a 600 million dollar deal, if I recall correctly and that included the condo project that was the true disaster. The original casino was on the order of about $250 million - very reasonable for a new build at that time. Not sure how much was borrowed but I thought the debt was closer to 500 million in total.
 

CruzDude

Senior Member sharing a brew with bajaden
#10
Did a bit of research and found the following articles about Maloofs/Palms debt. The first is February 2010 and the second is January 2011. However, the Kings are never mentioned in any of the articles. Be careful in forming any opinions as to how this might affect the Maloofs ownership of the Kings which is very separate from the Palms.

Having just been in Las Vegas this past week I saw three Palms buildings: the Palms Casino Resort, the Palms Condominiums and Playboy Club and a third building identical to the condo building, all about 3/4 mile west of the Las Vegas Strip. No mention of the Palms in any news or media outlet other than the celebrity and party stuff going on. Not sure which building relates to the below articles.

***********************************************************************************************

Harrah's private equity owner buying up Palms debt
(VIA DEBTWIRE) · FEBRUARY 25, 2010 · 7:06 PM


Texas Pacific Group, one of the private equity owners of Harrah's Entertainment in Las Vegas, is accumulating debt in the Palms resort, according to a story published Wednesday by Debtwire, a publication of the Financial Times.

Citing unnamed sources, the publication said TPG had acquired a piece of the Palms' $380 million bank debt. It also said Palms' EBITDA – a commonly-used profit indicator – fell to $12 million this year amid the recession from about $70 million two years ago.

The Palms is restructuring its debt and the Maloof family, which owns the Palms, is in the process of selling its beer distribution business in New Mexico for $100 million, the publication said.

The Palms loans are privately-held but can be traded among investors.

Palms owner George Maloof declined comment on the story and declined to discuss his resort's financing other than to say the business was on solid ground.


***********************************************************************************************
Green, TPG Are Said to Be in Talks Over Controlling Stake in Palms Casino
By Beth Jinks and Jonathan Keehner - Jan 6, 2011 7:09 AM PT

Jan. 6 (Bloomberg) -- Leonard Green & Partners LP and TPG Capital are in talks to take a controlling stake in the Palms Casino Resort, a Las Vegas celebrity hangout, as owner George Maloof seeks to restructure the property’s debt, people with knowledge of the matter said. Bloomberg's Cristina Alesci reports. (Source: Bloomberg)

Leonard Green & Partners LP and TPG Capital are in talks to take a controlling stake in the Palms Casino Resort, a Las Vegas celebrity hangout, as owner George Maloof seeks to restructure the property’s debt, people with knowledge of the matter said.

The buyout firms acquired most of a loan backed by the casino and its hotel towers at a discount last year, and may take an equity stake in the first quarter as part of the restructuring, said three of the people, who asked not to be identified because the deliberations are private. No agreement has been reached and talks are continuing, the people said.

Maloof, who opened the Palms in 2001, may partner with Los Angeles-based Leonard Green and TPG to remain the operator with a reduced ownership stake, the people said. The property is backed by a revolving credit facility, originally for $400 million, that came due in October and wasn’t refinanced. The resort is located less than a mile off the Las Vegas Strip.

The Palms breached financial covenants on its loan after operating conditions worsened, the people said. Private-equity firms and casino companies are scouring Las Vegas for deals as the city emerges from a record slump in gambling and tourism worsened by the financial crisis and housing collapse.

TPG, based in Fort Worth, Texas, owns Caesars Entertainment Corp., the world’s biggest casino operator formerly called Harrah’s, after taking the company private for $30.7 billion, including debt and transaction costs, in January 2008 with Apollo Global Management LLC.

Representatives of TPG and the Palms declined to comment. A spokesman for Leonard Green did not respond to calls and e-mails for comment.
 
Last edited:
#12
I'm going to read tom's paper if it has any citings or is discussed.. my friend shared a link, and I really don't know if this is legit or not

looks like Manny P. wants a part of NBA and was apparently offered by some consultant or something like that. dont remember the entire article. I really don't know how much money this guy has but if he can pool resources, he can promote the kings bigtime here in the philippines. that is IF this source is legit. or if he bites on a deal, but if this gets out in the country fast and gets all hyped up and stuff.. well see

Been away so long, can some one bring me up to speed lol

are the maloofs in danger of losing the team to sacramento, cause I know the owe sac. 77 mil right? if they move to anaheim they would require that debt be paid in full.. so whats really going on?
 

Glenn

Hall of Famer
#13
I have seen a lot of top level filipino basketball and imports (read American) have a size limit put on them and the teams can have only 2 per team. The article lost a lot of credibility when the writer went on and talked about a full blooded filipino making an NBA team.

Business in the US is not like business in the Philippines. Perhaps the money is there if the last few Presidents and Marcos haven't skimmed all the wealth away but the average filipino is a great person, full of grit and determination, but they get squashed by the rich. They have been influenced mightily by the US but dreaming is a survival mechanism for many. They rubbed shoulders too much with the US and it altered their view of what they should be. Just be filipinos. Some of the hardest working and musical people in the world. Survival as in issue for so many.

We all need to dream or we are stuck with looking at life the way it is 100% of the time. It goes on in this country to some extent. In fact, I think the large pro athlete and actor's salaries is that they are a huge distraction from life and we value that. In the Philippines, many would simply cash it in if not for dreams and music. (Far too simplistic) If only one major singer can make it in this country, how can a basketball player? And how about half filipino Lou Diamond Phillips and Rob Schneider? Not many make it here.

Back to ownership as the former info was a background to the filipinos need to dream.

This will play out appropriately but depends on the Maloofs willingness to sell and/or give up their position as managing partners. I think any deal that removes them from in front of the camera will the absolute last ditch move on their part and perhaps distributing liquor would be safer and just as satisfying/dissatisfying.

I would have nothing against filpino ownership, Japanese ownership, or whatever. Any infusion of cash into the Kings would be welcome but if the Maloofs are still alive, I suspect it would have to be as a minority owner. Would the filipino group with the money be willing to invest in an arena and take profits from that?

Why not buy NOLA?
 
Last edited: