Mark Cuban loves trolling Donald Trump, and he often does it where the Donald lives: on Twitter. On Thursday, he rocked the Twitterati again when he declared Trump’s brand so toxic he predicts the Donald will go bankrupt within seven years.
Now, that may sound like wishful thinking, but Fortune magazine thinks Mark Cuban may be on to something.
‘While I take no position on the bankruptcy forecast, Cuban’s point about Trump’s brand is valid and important. Trump’s presidential run […] may cost him significant money.’
Once upon a time, before Donald Trump became Mein Trumpf, he pioneered a new market niche: branded, high-end real estate.
‘No one had previously created a brand that could be put on an office building or a hotel or an apartment building or a golf course and that would give any of those properties a patina of luxury and success. Trump did it, and the brand was his name.’
Donald Trump has flirted with politics in the past, but it mainly served to promote himself and his sleek image of success.
‘His business strategy over the past 40 years has been to keep himself in the public eye because every mention of his name in the media built the value of the brand.’
Unfortunately, it’s one thing to talk about running for president. It’s another to actually run. Donald Trump’s toxic campaign not only exposes him as a mean, vulgar, unstable, not-as-rich-as-he-claims bigot, it has also tarnished his brand. As Allen Adamson, a top branding consultant told Bloomberg:
‘The Trump brand used to be one-dimensionally focused on success. it was simple and relevant to a large audience.’
In other words, the brand appealed to the wealthy and those who aspire to be. But what business, high net worth individual, or future corporate titan will buy his products, lease space in Trump Tower, or partner with his ventures after this? Already, Trump’s bigotry has cost him a clothing line at Macy’s and a deal with José Andrés. The celebrity chef backed out of plans to open a restaurant at the real estate mogul’s new hotel in Washington, D.C. due to his anti-Hispanic comments.
Donald Trump now enjoys more fame than ever and performs before thousands in packed stadiums across the country. Alas, his mostly aging, white, rural, blue-collar, not college-educated fans are unlikely to spend thousands on golf club memberships, millions on posh apartments, hundreds per night on fancy hotel suites, or even $85.00 for a tie.
Can you build a new business empire on mass-market “Make America Great Again” baseball caps? Here are just a few facts from Bloomberg that predict a grim outlook for Donald Trump’s brand:
- People making more than $150,000 downgraded Trump’s brand by a third on a list of which brands are “more glamorous.”
- Only 36 percent of likely voters with household incomes of over $100,000 — Donald Trump’s target market — have a favorable view of him.
- The market share for Donald Trump’s hotels, casinos, and golf courses has plummeted by 14 percent since last year.
- Hipmunk, a travel website popular with millennials, reports bookings at Trump’s hotels are down by 58 percent.
- Donald Trump fares even worse with women, who make most of the purchasing decisions for their households.
- The 2016 election has also given millennials a negative impression of Donald Trump … just as this large demographic heads towards their peak earning and spending years.
How Mark Cuban turned on Donald Trump.
Mark Cuban was excited when Donald Trump entered the race. A few weeks after the big announcement, Cuban declared that Donald Trump was the best thing to happen to the GOP in a long time.
After all, Mark Cuban and Donald Trump have a lot in common, and it takes one to know one. They’re both entrepreneurs, they’re both billionaires, they’ve both had reality TV shows, they’re both Republicans, and they’re both flamboyant, media-savvy Twitter trolls with the kind of smug faces you want to punch. Both also claim to be self-made, though only Cuban actually is.
That didn’t last very long: By December, he was on The Nightly Show with Larry Wilmore calling Donald Trump the worst kind of liar. And in June, Mark Cuban flat-out accused Donald Trump of lying about his wealth on WABC’s Sid and Bernie Show.
But the real trolling didn’t start until after July, when Mark Cuban got so disgusted with Trump and his fellow Republicans he shocked them by endorsing Hillary Clinton. Since then, he’s shown Donald Trump no mercy. His exploits include:
- Publicly shaming Eric Trump for tweeting a faked photo to make his dad’s rally look crowded.
- Getting banned by Fox for saying — on the air — that he’s hedging his hedge funds in case Donald Trump wins and tanks the stock market.
- Offering the alleged billionaire $10 million to the charity of his choice in exchange for a four-hour interview on his policies and non-existent substance.
- Sitting in the front row at the first presidential debate in hope of rattling Donald Trump’s cage.