NEW YORK - JUNE 06: Rapper Lil Jon (center) poses for a portrait with Gavin Maloof (L) and Joe Maloof (R) at the Maloof Money Cup on June 6, 2010 at Flushing Meadows Corona Park in the Flushing neighborhood of the Queens borough of New York City. (Photo by Jared Wickerham/Getty Images)

Maloofs Now Own Just 2 Percent Of Palms And No Longer Run Resort, Putting Kings' Finances In Question

The Maloofs, who own the Sacramento Kings, have lost majority control of the Palms Casino and Hotel in Las Vegas amid rampant reports of the family's financial demise.

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Maloof replaced as Palms president

George Maloof, part of the family that owns the Sacramento Kings, has replaced himself as president of the Palms Resort in Las Vegas, reports the Las Vegas Sun. The Maloofs recently revealed that they had lost majority control of the casino and hotel, going from an 85 percent stake in the resort to a 2 percent stake due to incredible debt issues. With the ownership restructuring, the Palms' board decided to hire a new president to take over for Maloof, who has run the Palms since it opened a decade ago.

Maloof remains as chairman of the board, but his operations role has been significantly reduced in recent weeks.

The move comes as the Kings prepare for a huge free agency period; no NBA team has more cap space -- or has vowed more loudly to use it. The Kings picked up Jimmer Fredette in the 2011 NBA Draft and acquired John Salmons in a trade involving Beno Udrih to help shore up the small forward position. The Kings are said to be targeting a big man in free agency or via trade, but the impending NBA lockout could delay that splash.

Meanwhile, Kings fans remain concerned the Maloofs will follow through on their promise to spend.

For more on the Kings, visit Sactown Royalty.

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Maloofs Now Own Just 2 Percent Of Palms, Putting Kings' Finances In Question

Earlier this week, the Sacramento Bee and Wall Street Journal reported that the Maloof family, who own the Sacramento Kings, had lost majority control of the popular Palms Resort on the Las Vegas strip. The Journal quoted George Maloof as saying the family had gone from controlling an 85 percent interest in the Palms to a 10-20 percent interest.

But the Bee's Dale Kasler reports that, via regulatory documents in Nevada, the Maloofs actually own just 2 percent of the resort after two firms bought up the family's debt on the casino and hotel. Maloof told Kasler that the family has a buyback option that could take their interest up to 10-20 percent.

The Kings had the NBA's lowest payroll in 2010-11, sitting on the cusp of the league's salary floor. The explanation was that the team was waiting on a new collective bargaining agreement that would shrink future salaries and limit contract lengths. The Maloofs attempted began the process to move the team to Anaheim, but were rebuffed by the NBA and eventually agreed to remain in Sacramento for at least one more year while the league works with Sacramento civic and business officials on a new arena.

The Maloofs continually maintain that they are in good financial shape. Two years ago, they sold what was the original family business: a major beer distributorship in New Mexico. They also shuttered the WNBA's Sacramento Monarchs. The loss of the Palms leaves the Kings as their only major business. They are also major shareholders in Wells Fargo, an assumed moneymaker.

Billionaire Ron Burkle in April suggested he'd be willing to buy the Kings and keep them in Sacramento. The Maloofs publicly rebuffed his suggestion. Burkle's advisor Darius Anderson is on the commission working under Sacramento mayor Kevin Johnson to find funding for a new arena.

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Sacramento Kings' Maloof Family Loses Majority Control Of Palms Casino

The Maloof family, who own the Sacramento Kings, has lost majority control of the Palms Casino and Hotel in Las Vegas, according to the Wall Street Journal. In a debt restructuring, the Maloofs' ownership stake in the popular hotel dropped from 85 percent to 10 percent. The Palms is seen as the Maloof family's main business; the family sold its long-held and reportedly lucrative beer and spirits distributorship in New Mexico -- the foundation of the family business -- in 2009.

In April, the Maloofs attempted to relocate the Kings to Anaheim, blaming failed attempts to get a new arena built in Sacramento. The NBA worked with Sacramento city officials and business leaders to reboot a local arena attempt, and after three months of relocation rumors, the Maloofs announced they would stay in Sacramento for one year to try to work out a plan.

The Maloofs have repeatedly insisted that they are not interested in selling the Kings, and -- despite reports of massive debt issues leading up to today's news regarding the Palms -- maintain they are in good financial standing. But if that's a bluff and the money problems continue, the Kings are the last major business they can cash out in. (The family is a substantial shareholder in Wells Fargo, as well.)

For more on the Kings, visit Sactown Royalty and SB Nation Bay Area.

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