When Adrienne Maloof Is In Financial Trouble…

we’re all in trouble. 

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UPDATE:

The Maloof financial troubles are easing a bit. They just negotiated a deal to sell 65% of their NBA basketball team, the Sacramento Kings, for a cool $525M to a Seattle investment group intended to move the team to Seattle and rename it the Super Sonics.  This sale has to gain the approval of other NBA team owners, however, it is expected to gain quick approval.

Good for the Maloof family…regardless of whether the deal goes through, they have been given a $30M earnest money deposit, which is non-refundable should the deal fall flat, so the Maloof’s have some pocket change to pull them through whatever financial woes they’ve suffered of late.

This may be the reason we’re seeing Adrienne bouncing about town seeming optimistic and happy.

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As you know, I spend a great deal of time in Las Vegas and the news there has been that the Maloof family is in financial trouble, dropping their ownership of their hotel and very popular casino, The Palms, to only 2%.  They also own the Sacramento Kings and were nearly enticed to move the team to Anaheim because that city was offering a substantial cash infusion had they made the move…cash the family probably could have used.  I was surprised they didn’t accept the offer, except that the residents of Sacramento begged them to give it another year, and the Maloofs were kind enough to acquiesce.

Times are tough and if you don’t think the “rich” are affected, think again.  They aren’t starving or worrying about whether they can put gas in their cars, but they are having to cut down on staff, put their mansions on the market, sell their private jets and rent instead, and get rid of assets that are draining their resources, while trying to find ways to shore up their cash reserves to meet cashflow requirements.

I don’t know anything about the Maloof’s business and I have no doubt that they have been good fiduciaries of their inheritance, but long recessions seem to eventually impact the wealthy, as well, and I think it’s always a sign that things are getting worse,  People with money always have large cash reserves and when a recession has lasted this long, eventually those cash reserves disappear and then they begin to feel the pinch.  As I’ve said before, very few are surviving the long-reach of this recession.

Donald Trump nearly lost everything in the 1990′s and only survived that recession by keenly negotiating with his bankers, who weren’t offered bailouts at the time so there was no advantage for his banks to foreclose.

As much as I feel for “ordinary” people who have been unemployed for a long period of time, I feel the pain equally for the wealthy, too.  I hate to see loss.  Things may look like they’re doing well on the outside, but they have sleepless nights and worry just like everybody else.  And, as we can see from this season already on the Real Housewives of Beverly Hills, it impacts marriages, as well.  I recall the market crash of the 1930′s caused several millionaires who had seen their fortunes disappear jump out windows.  Yes, recessions hurt the wealthy, too, and there is no pleasure in watching them fall.

Don’t get me wrong, I’m not saying I wouldn’t love to see Jill Zarin or the Countess fall, but that has nothing to do with their level of wealth, and everything to do with their level of arrogance.  Sometimes people just simply need to fall, though Jill Zarin’s fall is most likely going to be when we see them carting her off to the nut house.  Hehe.

In an earlier poll, I asked if you believed that Adrienne and Paul’s marriage would survive because there seemed to be a great deal more bickering going on between the pair of them.  Sixty-eight percent said “yes” the marriage would survive, but that was before we knew they were dealing with financial issues.  The bickering has always apparently been there, but financial issues put enormous strain on a marriage, as we witnessed first-hand in the Armstrong marriage.

Lisa Vanderpump’s beautiful estate is on the market for $28M and I’m guessing that’s because restaurant sales are down, as well.  Aside from possibly realizing the home is too large for them now, as my husband and I realized, it simply may not be worth paying the large property taxes given the prolonged downturn in the economy.

I don’t like to talk about people’s financial issues.  It seems it’s none of our business.  I am especially saddened by the Maloof’s issues.  They’re nice people and we never like to see nice people fall.

You might be inclined to ask, why then is Lady Brooks talking about Adrienne Maloof’s financial issues if she doesn’t like talking about such things, and the reason is obvious…nobody is immune, and so when you watch these beautiful women living their “apparently” beautiful lives, know that they have issues, too, and that not everything that glitters is gold.  Each of us will have ups and downs in this life we are living and each of us must muster the strength to get back up.  If Adrienne can do it, we can do it.  She still bothers to get up everyday and she takes the time to go about her daily chores.  She looks in a mirror, she puts on her make-up and she still has kisses for her little boys.

Don’t you ever give up on yourself.  You’ve got a sea of people rooting for you, even though it may not seem so at your darkest moments.  We need to open our hearts to the good will we all have within us, for Adrienne, for our neighbors but, mostly, for ourselves.  My heart aches for all the suffering I am seeing and I pray everyday for your heart not to harden in these difficult times.

Your friend,

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12 comments on “When Adrienne Maloof Is In Financial Trouble…

  1. My husband and I sold our larger house (nothing like the Maloofs ) and moved into a much smaller house I had been renting out. This is a house that I had always intended as my retirement house, but we moved up the move in about 6 years.

    while we could still afford the bigger house, we wanted the flexability and not having as much of our liquid assets tied up going towards large mortgage payments. Especially with our children going off to college soon.

    I think it must be harder for the uber wealthy to cut anchor and change course. 28 million dollar homes just don’t sell as quickly as a homes in the 100s of thousands (our house had an offer the first day, was finished escrow in 30 days).

    Bethanny said, “Mo money, mo problems.” and I would have to agree with that. When my husband and I were first married, we didnt have much, but we also didnt have as much to worry about.

    • Well, whilst I agree that more expensive houses in most locations are a difficult sell, the advantage to being in Beverly Hills is that investors and buyers come from all over the world to own there, as well as a large number of celebrities who, for many reasons, want to own there. In other words, it’s a much easier sell than probably most cities in the world. Assuming that most houses in a good market might take 4 months to get an offer, I’m guessing that the more beautiful and expensive homes in Beverly Hills don’t take that much longer. Mauricio probably has an extensive list of available buyers and, when priced right, he can move these large estates. You made the decision to downsize perhaps at the right time because I haven’t heard of too many houses moving in one day, except during the height of the market and except in San Jose, California, where there’s always been an extreme shortage of housing. Good for you. I don’t agree with Bethenny. More money, just larger acquisitions.

      • I own and rehab (then rent out) properties. At the time we sold the house, most houses on the market in my area were shabby and overpriced or shabby and in foreclosure… We could have sold the house a few years earlier for probably 30k more, but since I had done most of the work myself, we didnt lose money on it. Our house sold to a family who wanted something in turnkey condition, at a realistic price.

        Your right that if the price is right, almost anything will sell. Candy Spellings monstrosity finally sold, of course the purchase price was 20 mill off the asking price… OUCH..

      • You know, honestly, what’s $20 million, when the asking price is $150 million? I’m sure her daughter and son can live just fine with what they ultimately end up with. I’ve had friends who have done the rehab stuff and good for you for pricing it right because that’s the secret, in all markets.

      • Do you think square footage might be an actual detraction from selling? Lisas house is so huge, that it just doesnt seem practical. Jennifer Anniston sold a home recently that was in the same price range, but the houses expense came more from the finishings than the square footage. A house like Lisas needs quite a bit of staff to keep it up to snuff, which for a lot of people (who didnt grow up having in house staff) might be a turn off..

        One of my friends, is pretty rich by the standards of where I live. She and her husband are designing and building a home, he started out wanting some 11000 square feet, and she put her foot down, saying that she wanted a home that she didnt want to have a full time housekeeper, or rooms that they never used. They settled at around 6000 square feet,

      • 6,000 square feet is comfortable. I don’t think the square footage would be the distraction. The issue would be simply to find a family for which it is suitable. I am thinking that Lisa and Ken, with the children gone and the marriage of their daughter complete, simply do not need such a large estate and grounds for the pair of them.

    • Well, so often we watch these shows and we quite naturally feel envious of them. There’s nothing wrong with us, it’s human nature. I think so many of us like Adrienne Maloof and when you genuinely like someone you simply don’t want to see them fall. Her falling and her willingness to accept it and face it is so kind. So many others try to hide is…like the Armstrongs. I think that after this Armstrong “fraud” it’s ok to be authentic. Though having money is necessary, if having it changes who you really are, you ought not to have it. I know times are tough and I so want the people in our little community here to remember that this is a place where we will work to pick you up for we are all humble and compassionate people, aren’t we? I will always work to pick you up because when standing together we can achieve great things. I once read a quote, and I wish I could remember the poet, who said “If you think your voice is insignificant in a big world, then you’ve never tried to fall asleep with a mosquito, have you?” God bless you and all the people in your life that you love.

  2. The recession affects everybody, even the rich as you so eloquently stated Lady A.
    I am not worried about Adrienne though, she’s a savage businesswoman, and although she is downsising, she’ll never be poor.
    The current portrayal of the Maloof’s on the HW is troublesome, because it seems Bravo emphasises on their bickering. Surely, that can’t be good for business either. We all know that Bravo edits and cuts to make it worse than it is, and at their dinner party they did not come across as classy as I think they are.

    • You know, when I speak of the Maloofs, I mean Adrienne and her two brothers, who run the Maloof empire. Her husband, a plastic surgeon, could never provide that kind of lifestyle, but her family empire is quite vast. Obviously, if they are cutting back, they’re hurting, as well, and I’m doubting that plastic surgeons are doing very well at this time, now that I think about it. They won’t starve, that’s a given, and they’ll still have a lifestyle most would only dream about, but it’s important we all recognize that the recession is affecting all. Thank you for commenting. I enjoy your contributions.

  3. You are enjoying talking about them, and that’s okay. No need to pretend like you are not. Because if you are really not happy about talking about them as you seem to want to convince yourself, you wouldn’t. Sorry! I just like it when people take pride in what they do no matter how silly it is. Or not do it if they don’t enjoy it!

    • Hmmm. Interesting that you would think so, but the post had nothing to do with Adrienne Maloof’s financial issues other than to say that if the wealthy are having to cut back because they’re feeling the pinch, then we are all in trouble because it means that more bad news is on it’s way. I’m not pretending anything, my friend. I am saying that I generally do not like to talk about other people’s financial issues and her financial issues made the headline news at the time. I wanted to share my opinion about it. I decided that it was a good opportunity to, again, say that I don’t like to see anyone fall, regardless of who they are and I do like talking about that.

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