Sunday night news broke that the Maloof family have agreed to terms to sell the majority of the Sacramento Kings. The deal will most likely take the Kings to Seattle.
The Maloof family and minority owner Bob Hernreich have reached an agreement to sell its 65 percent stake in the NBA’s Sacramento Kings to a group led by Seattle hedge-fund manager Chris Hansen and Microsoft CEO Steve Ballmer, the NBA announced Monday.
The Maloof family is probably known as much for owning the Palms casino as they are for owning the Kings. Since they owned both properties wagering on the Sacramento Kings at Palms wasn’t possible due to potential conflict of interest between businesses.
When the Maloof family sold the majority of Palms to TGP Partners this banished the Boston Celtics from their sportsbook since TGP has interest in Caesars Entertainment. In this deal for the Sacramento Kings the Maloof family will still have a tiny ownership of the Kings which means that the Nevada Gaming Commission will likely see that there is still a potential conflict of interest.
Don’t expect to see the Sacramento Kings available for wagering at Palms until the Maloof family totally divests its entire stake from the Kings or Palms. In other words don’t look for any Sacramento Kings action at Palms any time soon.
Last week I passed on info that Palms, in Las Vegas, received an injection of cash to help settle some of their debt problems. Just a few days after the report that TGP Partners injected some money we all learn how much they and the Maloof‘s actually own.
The Maloof family will soon own just 2 percent of the Palms Casino, its trendy Las Vegas property, according to regulatory documents filed in Nevada….
….In an interview late Thursday, Maloof said the family could regain a more significant share – up to 20 percent – under buyback options granted by the creditors who are taking control…
….The casino’s creditors, investment firms TPG Capital and Leonard Green & Partners, will own 49 percent each.
The Maloof’s seem to be only part of Palms in name, with a chance to still only be a part of it in name. If each partner gives up 9% interest so the Maloof’s reach 20%, they’re still the smallest shareholder.
I’m not sure that Caesars Entertainment running the show at Palms will lead to profits, but it still seems as if it’s the next move when looking at TGP Capital’s (and Leonard Green & Partners) partners.
There have been rumors about an NBA team moving to Las Vegas for at least five years. Those rumors are fueled again with talks of a deal being in place if Las Vegas builds a new arena for a team.
“We have an NBA team under contract,” Milam (Chris Milam, CEO of International Development Management LLC) said, declining to name the franchise. But the deal will take effect only if “other pieces of the puzzle fall into place: One of those pieces will be that a building (arena) is approved,” he said.
SB Nation looks at which team may be on the move.
Detroit Pistons: The Pistons are mentioned specifically in the article because Karen Davidson, the widow of the long-time owner Bill Davidson, has said the team is for sale. Detroit’s economy, of course, is getting killed, and that, combined with the team’s increased struggles, has caused the Palace of Auburn Hills to be sparsely populated, even though it’s outside of the city. Odds: 3-1
New Orleans Hornets: The Hornets’ money problems are no secret, and they just fired the very competent Jeff Bower as their GM. Oh, and they might trade away their best asset in Chris Paul. Also, they’re probably for sale, though you never know with George Shinn. Odds: 3-1
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