Posted on: Monday, May 27, 2002
Sacramento Kings owners focus on people
By Scott Soshnick
Bloomberg News
SACRAMENTO, Calif. — Sacramento Kings co-owner Joe Maloof was leading a tour of his family's Las Vegas casino last November when he spotted a linebacker-sized security guard standing by the entrance with his arms folded.
"You're too intimidating," Maloof told him, flashing a grin. "We want our guests to feel welcome."
Superior customer service ranks right up there with winning basketball these days in Sacramento, which is battling the Los Angeles Lakers in the Western Conference finals. Game 5 of the best-of-seven series is tomorrow in Sacramento.
Unlike most National Basketball Association owners, who appear in their luxury boxes just before tip-off and then bolt at the buzzer, Joe and his co-owner brother, Gavin, roam the upper decks of Arco Arena to make sure the popcorn is fresh and the ushers are polite.
"If someone doesn't like catering to people, they probably shouldn't work for us," said Joe Maloof, who at 46 is one year older than Gavin.
That isn't hyperbole. There's been about a 40 percent turnover rate among Kings' employees since the Maloofs bought majority control of the team in 1999, Gavin said.
"Our approach isn't for everyone, but it's something we feel strongly about," Gavin said.
The brothers learned about customer service on the back of a beer truck.
Their father, George, ran myriad businesses, including a beer distributorship, banks and the NBA's Houston Rockets, which he bought in 1978. Because George Maloof insisted that his eldest sons start at the bottom, Joe began sweeping the beer warehouse when he was 10 and then had a delivery route until he was 21.
"Joe and Gavin have a lot of their father's traits," said their mother, Colleen. "They're respectful, thankful, and they cater to other people."
The Maloofs speak reverently about their father, who died in 1980 at the age of 57 after becoming ill at the family's Ramada Inn in Albuquerque, N.M.
The bellman, Walter, held the door as the sons were taking their father to the hospital.
"Here we are trying to whisk him away and my dad's digging in his pocket for a tip," Gavin said.
The Maloofs have transformed Sacramento from an NBA outpost into a desirable destination. They even managed to convince Chris Webber to stay after the All-Star forward complained about the city's lack of nightlife.
When the Maloofs took over, the Kings had a season-ticket base of about 4,000. It's about 14,000 now, with another 3,000 on the waiting list, Gavin said. Team merchandise, which once was almost impossible to find outside Sacramento, is now the No. 2 seller in the league behind the Lakers, Gavin said.
The Maloofs sold the Rockets the season after their father died, a decision they still regret because it took so long to get another team.
The Maloofs spent lavishly to change the perception of the Kings, including the construction of a $9.1 million practice facility that has amenities such as a pool table and video games. The brothers cater to their customers as much as their players, which explains why the Kings ranked first in a J.D. Power and Associates study of fan satisfaction.
The Maloofs return all their phone calls, and their home and cellular telephone numbers are on their business cards. Because of their age and accessibility, the Maloofs are often compared with billionaire Dallas Mavericks owner Mark Cuban, who puts his e-mail address on the scoreboard during home games. Cuban sees the similarities, too.
"We both care about our customers and will do anything for them," Cuban said.
The J.D. Power study measured everything from seating and food service to parking and restroom accommodations. The Kings ranked first in 15 of the 24 categories, results the report called "stunningly high."
The Maloofs also rank high in social status. The brothers were named to People magazine's 2000 list of most eligible bachelors.
The Maloofs value their employees, which is why they recently took out a full-page ad in the Sacramento Bee to thank them all by name. They also started an incentive program that offers top employees cash prizes and trips to The Palms, their Las Vegas casino.
"We have everybody around here seeing who can be nicer than the next guy," Joe said.
That's exactly the atmosphere Joe envisioned when he spoke to the security guard. After their chat, the guard welcomed patrons with a beaming smile.
