Reeling from a terrible season for the Kings, the Maloof organization announced its first-ever layoffs Tuesday.
Maloof Sports & Entertainment said it has eliminated about 1 percent of its 1,200 jobs. That translates to about a dozen jobs, though the organization wouldn't say if they were full-time workers, part-timers or both.
The owner of the Kings, Monarchs and Arco Arena was reacting to the weak economy and a dismal Kings season that produced waves of unsold tickets at Arco.
"Like all companies today – including sports teams and leagues – we are making changes in every area of our business," the organization said in a press release.
The Kings have scrambled in recent months to respond to declining revenue. The team in February was among a dozen teams borrowing money under a line of credit arranged by the National Basketball Association. The Kings wouldn't say how much they borrowed, but each team was allowed $13 million to $20 million.
Team executives also acknowledged the Kings were on track to lose $25 million to $28 million this year, although that was before trading several high-salaried players in February.
The team ranked last in the league in attendance, averaging 12,571, according to ESPN.com. In an effort to revive attendance, the Kings have announced they're dropping season ticket prices for next year.
The recession has produced a cash crunch for several sports organizations. The NBA league office laid off 9 percent of its employees last fall. The National Hockey League's Phoenix Coyotes filed for bankruptcy protection this month.
The layoffs are the first since the Maloof family bought the organization 11 years ago, said Mitch Germann, a vice president with Maloof Sports.
Call The Bee's Dale Kasler at (916) 321-1066. Read his blog on the economy, Home Front, at www.sacbee.com/blogs.
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