Donald Trump is a terrible businessman, so the idea that he plans to run the U.S. the same way he has run his business is truly frightening. He managed to lose $1.17 billion in just 10 years, had six business bankruptcies, and nearly one personal one. His businesses continue to do exceptionally poorly, and here is why.
The president bought Doral, a 57-year-old 650-acre 643-room golfing resort near the Miami airport, in 2012 for $150 million. The Deutsche Bank loaned him $125 million and $250 million for renovations. It should have been a good investment due to Florida’s weather and the 50-year-standing PGA Tour. Yet in just two years, the resort’s operating profit dropped a staggering 69 percent.
At issue in part, POTUS has been breaking the lawful Emoluments Clause, which states that no foreign government can help a president profit. Last year the president told reporters that in no way was he “using the presidency to enrich himself,” according to The Washington Post.
‘Being president has cost me a fortune — a tremendous fortune like you’ve never seen before.’
When Tiger Woods won the televised Doral tournament in 2013, that gave the resort a great start. Trump was trying to attract South Americans during their winter. Yet, when POTUS came down the escalator at Trump Tower to announce his run for president in 2015, he screwed up by calling the Mexican refugees “drug dealers and rapists.” The Doral’s big tournament primary sponsor Cadillac pulled out in 2016. Then, the Zika virus and hurricane scares interfered in profits in 2017.
Still, the Trump family’s strategy has always been deny, deny, deny. The president’s middle son Eric Trump has been running the business operations since Trump has been president. Last year, his son was adamant in a statement refuting the Trump brand being damaged. He claimed the golf resort was doing well:
‘This story is completely senseless. Our iconic properties are the best in the world and our portfolio is unrivaled by anyone.’
In 2014, the president’s son told Golf TV:
‘The amount of Brazilians and Colombians and Venezuelans and Argentines that are coming into the United States to play great golf courses, it’s amazing. And you really capitalize on this.’
Then in June, Eric Trump said:
‘The Doral is on fire. The amount of Brazilians and Colombians and Venezuelans and Argentines that are coming into the United States to play great golf courses, it’s amazing. And you really capitalize on this.’
Tax consultant Jessica Vachiratevanurak tried to get the golf course’s property tax reduced. She said:
‘They are severely underperforming (others, because) There is some negative connotation that is associated with the brand.’
A hotel-industry analyst with Robert W. Baird & Co. based in Chicago Michael Bellisario said that the golf course was still profitable, but only since it cut its expenses:
‘Profitability is down across the board. It’s clearly underperforming their expectations. Among the hotel community in Chicago, everyone is aware of the relative underperformance of the Trump hotel over the last two to three years.’
The family business, The Trump Organization, released a statement about it’s Chicago real estate:
‘It’s sad to say, but the perceived threat of gun violence has harmed visitation to the destination.’
Chairman of the 2016 golf tournament, World Golf Championships, Butch Buchholz said:
‘The problem that the tour had was that we couldn’t find a replacement for Cadillac. So we had to move the tournament. If they could have found a sponsor, they would — I believe — still be playing there.’