While he loves to brag about what a great businessman he is and how much money he has, a new report from Bloomberg makes it clear that the Trump “fortune” is dwindling by the day, with his total net worth plummeting by a third in 2020 alone.
Ironically, Trump’s own failures as president — the coronavirus pandemic and being associated with the Jan. 6 Capitol insurrection — have been catastrophic to his bottom line:
“His financial disclosures and loan documents, interviews with former executives and industry analysts, and a host of legal fights and investigations reveal just how much trouble Trump and his company could face. Covid has been hard on office buildings key to his wealth and hotels and resorts that bear his name. The fallout from the Capitol assault has hurt his relationships with brokers and lenders. At least $590 million in loans come due in the next four years, more than half personally guaranteed by Trump, and his scrapyard of failed enterprises has only gotten more crowded.”
The foundation of the Trump Organization, commercial real estate, has been pummeled by the ongoing fears over COVID-19 which exist both in the United States and across the globe:
“No segment in Trump’s business world is as important as commercial real estate, which accounts for about three-quarters of his net worth. And few industries in the U.S. have been as hard hit over the past year, when workers disappeared from office towers and business districts became ghost towns. He’s facing a ‘triple whammy’ from Covid, the Capitol riot and an aging portfolio of properties, says Ruth Colp-Haber, who runs office consultant Wharton Property Advisors. ‘These are the businesses you don’t want to be in right now.'”
Even Trump Tower — seen by many as emblematic of Trump’s corporation — is suffering, with rents on Fifth Avenue where the tower is located plunging 32 percent over the past two years, which raises questions about whether Trump will ever be able to turn around the losses he’s currently seeing when he looks at his balance sheet.
In recent years, Trump has pivoted to licensing his name to properties and businesses in an effort to offset some of his losses in the real estate sector. But that line of revenue is also suffering badly:
“After the Capitol riot, Trump Plaza in Florida’s West Palm Beach voted to strip Trump’s name, and New York City is trying to pull his contracts to run ice rinks, a carousel and a golf course.”
And let’s not forget the plethora of legal landmines Trump and the Trump Organization are facing, especially in New York, where both the Manhattan D.A. and state attorney general suspect crimes ranging from bank, insurance, and fraud to money laundering, all of which could bankrupt the failed, one-term president and send him and his children to prison for decades.
Donald Trump probably thought his four years in the White House would be great for his company. Clearly, he was wrong, and clearly he is also one of the worst businessmen on the face of the planet.