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Maloofs Surrender Palms Controlling Stake
The owners of the Palms Casino Resort and the NBA’s Sacramento Kings have reached a deal that will see two investment firms become partners in the Las Vegas property.
The Maloof family announced June 14 that it had reached a recapitalization agreement with TPG Capital and Leonard Green & Partners. As part of the deal, the firms will reportedly take a controlling stake in the Palms.
Co-owner George Maloof told the Sacramento Bee the agreement erases the casino’s debt and leaves the family with the finances to contribute to a new arena project for the Kings in Sacramento.
“We’re definitely in a better position,” he said. The Maloofs’ casino business took a hit during the recession, the paper reported, and the Palms breached its loan covenants earlier this year.
The family has been pushing for replacement for the Kings’ aging