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Adrienne Maloof and the Family Secret (UPDATE)
Just how close to insolvency is the Maloof Family?  Last year, alone had an estimated net worth of $300 M, making her the wealthiest of all the RH’s.
Between bad investments, worse decisions and extravagant lifestyles, it looks like the Maloof fortune, made by their father, is being squandered. 

excerpted from Aaron Applegate The Virginian-Pilot

SACRAMENTO, Calif.

As basketball fans filed into the corporate-park beige building hulking over spotty suburban sprawl a few miles north of downtown, it was clear why Virginia Beach has a chance to lure away this NBA team.

The Virginia Beach Kings?

But with the Kings struggling – they’ve won eight games and lost 17 – talk of relocation to Virginia Beach rampant, and fans fed up with the Maloofs, the colorful Las Vegas-based family that owns the team and the arena, even a last-minute $5 ticket promotion couldn’t fill the building this night.

Coach Keith Smart brushed off pregame questions about the effect of a possible move on team morale. Players suiting up and stretching in the modest locker room said they didn’t know anything about the move or much about Virginia Beach.

Sacramento Mayor and former NBA All-Star Kevin Johnson has said the building, now called Sleep Train Arena after the mattress company that bought its naming rights this year, is one of the league’s worst.

Plans to replace the arena have come and gone, the most recent effort failing in dramatic fashion last spring. Most locals blame the Maloofs, who they believe don’t want to be in Sacramento anymore, can’t afford to help build a new arena, or both.

“It’s like they almost want an arena given to them, but then want all the revenue back!” yelled MacIntosh over pounding pregame music as dancers gyrated bare midriffs at half-court. A buzzer sounded. The Kings took the floor. Cheering fans jumped to their feet.

Virginia Beach officials quietly began laying plans for an 18,500-seat arena blocks from the Oceanfront early last year. It would need an anchor tenant, and sources have said since August that the target is the Kings.

City officials maintain that Hampton Roads could sustain a major pro team. The region’s population is about 1.7 million, compared with 2.1 million in the Sacramento area. The median household income is $54,000, not far behind Sacramento’s $57,500.

The framework of the Virginia Beach deal calls for a $346 million facility and an additional $80 million to move the team. The city would put in $241 million, and city officials want the state to put up $150 million. Comcast-Spectacor, the sports and entertainment company that would operate and lease the arena for 25 years, would put in $35 million.

As the deal stands now, 92 percent of the project would be publicly funded, with no money from the Maloofs.

Although that family – four bachelor brothers, a reality-TV-star sister and their mother – are widely disliked in Sacramento now, that wasn’t always the case. They took full control of the team in 1999, bringing Las Vegas glitz to the staid state capital.

“When the Maloofs hit town, they really excited the city,” said Councilman Rob Fong, who likens Sacramento to a Midwestern town. “They were a shot of adrenaline.”

The family, particularly brothers Joe and Gavin, won fan loyalty as part of the first wave of NBA owners to sit courtside during games to cheer on the team. They had experience, too, having run the NBA’s Houston Rockets for a few years in their mid-20s after the 1980 death of their father, who ran a successful beer distributorship. The family later sold the Rockets.

Shortly after buying the Kings, the Maloofs built the first tower of their Palms Casino Resort in Las Vegas. The cast of the MTV reality show “The Real World: Las Vegas” stayed there. It became a hotel of choice for the young rich and famous.

The Kings kept making the playoffs, and the Maloofs added a $600 million building – the “Fantasy Tower” – to the Palms. It included a suite with a half basketball court, electronic scoreboard, locker room and cheerleaders for hire.

(As seen on the first season of the Real Housewives of Beverly Hills)

Meanwhile, Arco Arena was aging. A 2006 plan to raise the sales tax to help build a new arena on a downtown railyard was put up for a vote. During a campaign to secure public funds, the Maloof family angered some fans by appearing in a fast-food restaurant commercial filmed in their casino that touted their net worth at $1 billion and advertised a $6,000 combo meal – burger, fries and a 24-year-old bottle of Bordeaux.

Councilman Fong, who was an architect of the 2006 sales-tax plan, said the Maloofs never got behind it and eventually came out against it.

The referendum bombed. Eighty percent of voters were against it – and fans began to doubt the Maloofs’ commitment to Sacramento.

In 2007, for the first time in eight seasons, the Kings lost more games than they won and failed to make the playoffs..

By 2009, the Kings had one of the worst records in the NBA, and it appeared that the Maloofs were having financial trouble.

A third tower at the Palms Casino Resort, built just before the economy crashed, reportedly racked up $400 million in debt. The Maloofs sold their New Mexico beer and liquor distributorship – the foundation of the family’s wealth – and eventually most of their interest in the Palms casino.

(It’s widely reported that they retain 2 percent.)

,  the most well-known of the siblings, joined the cast of the TV show “The Real Housewives of Beverly Hills.” Joe Maloof and Gavin Maloof continued work on their skateboarding competition, called the Maloof Money Cup. Phil Maloof, a former New Mexico state senator, focused on the family’s record label and TV interests. George continued to run the Palms for the new owners.

And, of course, they still had the Kings.

Then, in 2011, the Maloofs stunned Sacramento when news broke that they were in talks to relocate the team to Anaheim, Calif. Fan-based grassroots efforts popped up to keep the team, including the production of a full-length documentary called “Small Market, Big Heart.”

More About The Proposed Move To Anaheim

Sacramento Mayor Johnson went to New York and helped convince NBA team owners and league Commissioner David Stern to delay relocation for a year to give the Maloofs and the city another chance to hammer out a deal.

Last February, after months of negotiations, the Maloofs, Stern and Johnson announced the framework of a plan for a nearly $400 million sports and entertainment complex in the railyard. The city estimated that the project would generate $157 million in revenue annually in the region. It’s estimated that the Kings now pump about $100 million a year into the local economy.

To make the deal work, the city planned to privatize downtown parking to raise up to $255 million, according to The Sacramento Bee newspaper. The Maloofs would put in $73 million, $67 million of which, it was later learned, was a loan from the NBA. The entertainment company AEG would put in $59 million. The NBA offered an additional $7 million, it was also later learned. The public share of the project would have been around 65 percent.

The City Council approved the plan in front of cheering kings fans who packed City Hall.

Only a few weeks later, it all fell apart.

George Maloof called a news conference and argued that the deal was a bad one for his family, Sacramento and the NBA. He suggested renovation of the existing arena. Johnson responded that the city wouldn’t invest in the aging venue.

A city negotiator compared working with the Maloofs to “dealing with the North Koreans.” George Maloof said he couldn’t work with Johnson anymore. It’s been a stalemate since.

Through a spokesman, the Maloofs declined to comment for this story.

Virginia Beach Mayor Will Sessoms has said Comcast-Spectacor, not the city, is negotiating with a team. City officials said that, by early January, they hope to have a deal struck that they can pitch to General Assembly members.

George Maloof has made at least one trip to Virginia to meet with Gov. Bob McDonnell and Sessoms, according to sources and reports.

Maloofs Moving the Kings to Virginia Beach?

“All parties reached a deal earlier this year… and the door remains open on that plan,” Johnson said recently in a statement. “I fully respect the Maloofs’ right to evaluate all of their options. However, I do not believe the grass is greener elsewhere and will not let our community be used as leverage.”

Seems like Adrienne has more to worry about than a nasty divorce, reining in Chef Bernie, or and .   JMO>

The Real Housewives of Beverly Hills airs Monday nights on .

  13 Responses to “Maloof Family Fortune: "Gone With The Wind?”

  1.  

    I can’t wait for this entire family to fall flat on its face. They’re among the worst of the one-percenters.

  2.  

    Finally someone other than myself who doesn’t think the whole Brandi Adrienne feud is about her alleged use of a surrogate or gestational carrier. Always thought it had to do with Adrienne’s financial standing as my sense of most rich folks is that protecting the illusion of their wealth trumps everything else in their lives.

    I have yet to see or hear of any blogger or news sites uncovering any indication that Adrienne filed a law suit which makes me wonder if she really did or if this is just Bravo’s way of once again scripting the storyline to gain ratings since we all know this is far from reality tv.

    •  

      Beleive me, I looked everywhere for a lawsuit, never found it.

    •  

      I’ve always said that it could be about her having a surrogate without using her eggs (which mean her kids are Pauls and the surrogates and not Adriennes). And that could be the secret that they didn’t want out. That her kids “real” mother was out there. Also In regards to Adrienne’s financial issues, they are almost broke. “I believe the Magoofs own 51% of a team that is worth about 400 million. The Magoofs would get half of this. They owe Sac 70 Million the NBA Somewhere around 150 million, not to mention debt we don’t even know about. Selling will not help with their debt issues, only make things worse. Remember once the Kings are sold they don’t own shit. The only option for us is for them to sale then file bankruptcy…basically shitting on the loan to Sac and NBA…My how the mighty have fallen.etc…

      PUHD!”

  3.  

    Makes sense! She’s been under this money stress and was so desperate for any publicity help which I suspect is why she was such a baby about Lisa’s daughter’s bachelorette not being at her hotel! Well, Adrienne, your money problems aren’t Lisa’s problem! She had no right to take up an issue with Lisa over that. Her shoe line probably went nowhere, which is also another reason why she (undeservedly) resents Lisa. She’s desperate.

  4.  

    No team is going to be successful if the owner(s) refuse to put any money into the team. The Maloofs have been Scrooging it with the Kings for years now. Throwing tons of money at a team is no guarantee of success (hello, Dan Snyder/Redskins), but it IS a guarantee of failure when you dont put any money. And that has nothing to do with the facilities. I believe the Maloofs have been delibteratly letting the team decline in order to justify moviing.

    I still dont understand the move to VA Beach. No way that area can support the team. If they do this deal, they will move the team again within 3 years and leave VA Beach holding the bag.

    It seems the Maloofs have assumed they would always have a Midas Touch. This is very apparent with The Palms Casino in LV. The heyday of that place is 10+ years ago. And especially when the economy crashed, not being on the actual Strip really hurts them. The Palms had its 15 minutes of fame that is way, way over. It will either be demolished in the next 5 years, or taken over by one of the other Strip tycoons and turned more into a place like the Rio.

  5.  

    Good grief do people not pay attention. There never was a law suit. People get caught up in semantics. Adrienne’s lawyers issued a threatening letter stating if Brandi didn’t sign a non disclosure document that they WOULD sue. Brandi’s lawyers told her not to sign due to the fact that if she did it could hinder her ability to continue working on the show. The only reason Adrienne sent the letter was to scare Brandi because she knew Brandi couldn’t afford a lengthy court battle,but Adrienne also knew she couldn’t possibly win in court. Nothing Brandi said or has said s libalist or untrue so no court would even hear the case but it would still cost Brandi money to retain a lawyer which you ended up having to do to the cost of 20 grand.

  6.  

    Good grief Manx, would you realize that you are watching a reality TV show that is really a docudrama ? (Google docudrama)
    Adrienne did say, “that’s a law suit” so Bravo made Brandi (pretend) to go with it. These shows are scripted. In their contracts it now is a requirement for all housewives to interact with viewers via social media. Did you really think Adrienne was dating Rod’s Stewart’s son Sean/Shawn ? She did that to make herself look “interesting” hoping Bravo would take her back. Look at the timeline of events.
    No, I am not saying the divorce proceedings in the media with Adrienne and Paul were apart of the show, but you can’t help bit notice what a bitch Adrienne is.
    She accuses her husband of beating her through Bernie and files for custody, her brothers step in, I imagine they told her to stop, then next thing you know despite the “look, see my back (that’s a rash), he beats me.. to the brothers stepping in.. to. Okay we can co parent although he beats me.

    P.S. Adrienne is a sneaky bitch! She was talking about Brandi first, Brandi just fired back! Oh well! If you can’t take the heat Adrienne, stay outta the kitchen.. Oh, you do, that’s where Bernie (your mouth pc ) comes in..
    So everyone knows, BRAVO HELPED BRANDI! I’m saying no more!

  7.  

    Actually I will say one more thing.. Adrienne acts like she is an important part of the business, you all are smart enough to see for yourselves that Adrienne always talked about how much she “worked” but really never worked. It takes Adrienne a half an hour to formulate a sentence, her brothers have no respect for her. If you only knew what I knew, ;)

  8.  

    Poppa Maloof is rolling in his grave.

  9.  

    *Ding Ding Ding* meg bar..
    You missed one thing. Adrienne purposely the weekend of Pandora’s bachelorette party invited the other girls to the palms, Adrienme was doing everything to sabotage the party from getting filmed, she even said in her talking head, well insinuated the cameras weren’t at the bachlaor party.

  10.  

    I just think it’s funny people really think Adrienne is a business person.. Okay, I am done talking

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