LAS VEGAS – At the Rain nightclub, go-go dancers are gyrating on platforms, flames are shooting above the crowd and the Maloof family is rolling the dice on an up-and-coming band it believes will successfully kick-start its record label.
Rev Theory is rocking at the Maloofs' Palms resort to promote the band's major label debut, "Light It Up." But more significantly, the concert earlier this month marks the inaugural release from Maloof Music, a partnership between the family and Interscope Records, home to such pop stars as U2 and Gwen Stefani.
Risks come with this new territory, despite the backing of one of the world's largest recording companies. The owners of the Sacramento Kings and Monarchs are venturing into the challenged music industry, where storied and long-established labels have seen overall revenue drop.
Album sales were down 15 percent in 2007 and are down 11 percent so far this year. Some A-list artists, including Paul McCartney, Madonna and the Eagles, are backing away from major labels and seeking alternative ways to distribute their music.
Though all the Maloofs are involved with the label, the youngest of the four siblings, Phil, works closest with Maloof Music. He divides his time between Los Angeles and Las Vegas, and was a state senator in New Mexico during the late 1990s.
He's unfailingly upbeat, even when pressed with questions about rough times in the music industry.
"I'm more excited than anything," Maloof said, while kicking back at a lounge and gaming area inside the Palms called The Mint. "It's a thrill that we have something good to sell. Yesterday my mom was calling everyone and telling them to get the album on iTunes."
Maloof Music is operating as a boutique label under Interscope. Along with Rev Theory, Maloof has one other artist on its roster: Ali Lohan, the younger sister of actress and gossip girl Lindsay Lohan. Ali Lohan is also the focus of "Living Lohan," a reality TV show produced by Maloof TV that follows her burgeoning recording career.
"Music is just a good fit for the Maloofs," Maloof, 41, said. "We want (Maloof Music) to be a niche, a good niche. … I'd like to foresee Maloof Music with no more than four to five groups. It's too hard with any more after that. We want to make sure all of our artists get the Maloof touch."
That touch includes access to a third-floor recording studio at the Palms that leases for $1,850 a day and has hosted the likes of Celine Dion and R&B diva Mary J. Blige.
There are also the Maloofs' connections to professional sports, the casino world and MTV. The 2007 MTV Video Music Awards was hosted at the Palms, with such pop stars as Kanye West and Foo Fighters performing in the hotel suites.
"It's like hitting the jackpot," says Rich Luzzi, the lead singer for Rev Theory. "(The Maloofs) have their hands in every piece of entertainment that you can imagine, and it just furthers the outlets that we can get our music into. It's great to be on a major label but partnered with a brand – the Maloofs really are a brand – that's amazing."
The Maloof family, led by its late patriarch George Sr., built its business empire on beer and liquor distribution, but it now has interests in gambling, hotels, banking, professional sports and entertainment. Siblings Joe, Gavin, George Jr., Phil, Adrienne and mother Colleen now run the family enterprises.
Deep pockets won't necessarily buy success in the music industry. The family can use the synergies between the new music unit and numerous other ventures to drive profit. Rev Theory's concert debut at the Palms resort is one example.
"Let's face it: Ali Lohan is not the greatest singer in the world," said Aram Sinnreich, a music industry analyst for Radar Research, a media research and consulting firm. "But what they're getting is an emerging entertainer that they can arrange around the brands they have a stake in – merchandise, TV, recorded music, etc. It's an intelligent deal. If one of the pieces fail, it can be supported by the other pieces. And if she gets sponsorships, they'll likely get a piece of it."
Call Bee pop music critic Chris Macias, (916) 321-1253. Read his postings on pop music at www.sacbee.com/21Q.
