Trump’s Financial Downfall Has Begun
NBC News is reporting that Trump may be forced to sell his stakes in two buildings that are known as the crown jewels of his real estate empire. The problem is that the revenues generated by these two buildings are propping up his other failing businesses.
Trump currently owns a minority stake of 30% in two buildings located in New York City and San Francisco. The other 70%, the controlling interest, is owned by Vornado Realty Trust. Vornado wants to buy out Trump’s minority stake because they are afraid that the buildings will lose tenants due to the association with Trump.
After the insurrection, the Girl Scouts of America asked to get out of their lease on space in the building in New York City. When you piss off the Girl Scouts, you know that you are in deep doo-doo.
Efforts to sell the buildings last year were unsuccessful. And Vornado’s attempts to refinance fell through because lenders don’t want to do business with Trump.
Trump, of course, doesn’t want to sell his stakes because he needs the cash flow. His golf courses and hotels are all hemorrhaging cash thanks to the economic downturn due to the pandemic.
And then there is his election loss. While he was president, anyone who wanted access to Trump stayed at his hotel, ate in his restaurants, and played on his golf courses. Trump is no longer president, so there is no incentive to patronize his properties, worsening the already steep fall in revenues.
Since the January 6 insurrection and Trump’s second impeachment, Vornado has become determined to buy Trump out. They are considering withholding his share of the revenue to force him to sell at a discount.
Withholding revenue is an automatic lawsuit in Trumpland but one has to wonder if Trump even has the cash flow to pay for the lawyers required to fight another lawsuit. He is fighting a second impeachment and will soon be fighting criminal charges in New York, Georgia, and perhaps DC. DC is considering charging him with incitement to riot, a misdemeanor.
How many battles can Trump fight at once? Especially if he is missing a large portion of his revenue stream?
Will he be able to hang on to the leadership of the Republican Party if he is focused on keeping his business afloat? Will he be able to afford to travel the country on his planned Revenge Tour to punish the 10 Republican House members who voted to impeach him?
Admittedly, Trump has been in this position before. After his huge losses and bankruptcy following the spectacular failure of his Atlantic City casinos, he was fortunate enough to be hired to do The Apprentice. With the money he made from the show, instead of using it to stabilize his business finances, he went on a buying spree scooping up golf courses all over the country and the world.
The Apprentice and then Celebrity Apprentice shows began to lose popularity and the golf courses never made money, so Trump was in a bind again. Then he won the presidential election which brought in new revenues and protection from his creditors.
Now he is out of office and subject to all of the financial consequences faced by private citizens. One has to wonder if he will be able to pull off another Houdini act and somehow wiggle out of this financial disaster.
Perhaps write his political memoirs? If he can find a ghostwriter and publisher willing to be associated with his lies, Trump could make a fortune. 74 million people voted for him in 2020. That’s 74 million potential customers, not to mention all of the people who would want to write books refuting his book.
Or maybe something as simple as selling tickets to his Revenge Tour. He probably envisions himself filling stadiums with screaming fans like a rock star.
And always, there is the alluring prospect of another run for the presidency in 2024 but this time with the unspoken plan of never leaving office so that he can enjoy a lifetime of freedom from financial worry.
Stay tuned. It’s just starting to get interesting.