The Kings announced Malone's fining on Monday. The move was first reported by Yahoo Sports on Sunday.
Malone went 39-67 after being hired in June 2013 by new owner Vivek Ranadive. Malone was hired before General Manager Pete D'Alessandro in what was considered an unusual order of events. Now D'Alessandro will get the opportunity to hire his own coach.
The Kings went 28-54 in Malone's first season and missed the playoffs for an eighth consecutive season. This season got off to a better start with the team winning nine of 14 games.
But the Kings lost their next game and have fallen into a tailspin after star center
The firing is the first major setback in Ranadive's tenure. He was welcomed as a savior when he bought the Kings from the Maloof family in 2013 and prevented the team from moving to Seattle.