Maloofs give up controlling interest in Palms!

[rainmaker]

http://www.sacbee.com/2011/06/15/3701395/maloofs-settle-debt-problem.html

Did they to this so they would have money to invest in the arena when they city/NBA comes calling? Do they not have the money?


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.

 

[ParniValjak]

I don't think this is good to be honest.

Breaching on re-payments has led to them losing controlling interest of their major asset. That will have an effect on the Kings one way or another. I doubt they would be able to commit serious finances for the arena unless its in terms of rent or re-payments of some sort but even then, its questionable how much they can fork out.

I guess one of those things every fan dreads, their team being owned by broke owners who are not even entertaining the possibility of selling.

 

[Tetsujin]

 

[RookieOfTheDay]

Now if we can just get them to give up controlling interest of the Kings.

 

[Aenadin]

Now if we can just get them to give up controlling interest of the Kings.

baby steps... baby steps... i want a cuban esque owner

 

[Peter_Gibbons]

The news outlets are reporting officially about his now, but its old news. It was already known months ago they loss controlling interest in the Palms in exchange for debt restructuring. Thats why the Maloofs kept saying they weren't under big debt but no one believed them.