United States|The importance of golf courses to Trump’s business has grown, according to a Reuters investigation. The real estate business, on the other hand, is doing worse.
Presidential candidate Donald Trump has become known as a real estate mogul, but now Florida’s golf resorts have become a much more important moneymaker for him.
At the same time that Trump’s other businesses are failing, the golf courses are failing.
The information appears from sources found by the news agency Reuters. Reuters’ analysis is the first report that accurately sheds light on Trump’s income this year, and it is based on, among other things, documents from the taxman and the judiciary and other documents.
Previously, the situation in Trump’s business was the opposite. Real estate has been the foundation of Trump and his family’s wealth, and the Trump Tower skyscraper in New York is visible proof of that.
Now Trump has even moved the headquarters of his company called the Trump Organization from New York to Florida, to a prosperous coastal town called Jupiter. The Trump Organization is a holding company that has hundreds of Trump’s companies under its wing.
When Trump first ran for president in 2016, according to Reuters, the golf courses and resorts were just a nuisance, a money hole eating into the company’s cash flow. Now the golf business brings the majority of Trump’s company’s cash flow.
According to a Reuters estimate, this year golf courses and resorts already bring in four-fifths of the Trump Organization’s cash flow of around $80 million (around €72 million) after operating expenses.
The actual crown jewel is the Mar-a-Lago Club in Palm Beach, Florida, where Trump himself also lives.
Currently the successful golf business is one of the few bright spots in Trump’s business. Trump has enough grievances and money holes. The threat is, among other things, hundreds of millions of dollars in fines for a convicted accounting crime.
The situation is also darkened by the weak current situation of the real estate market in New York. For example, the office skyscraper on Wall Street that Trump acquired with heavy debt leverage is suffering from empty spaces and decreasing rents.
It’s going poorly also with Trump’s majority-owned social media company for Trump Media and Technology Group. The value of the company’s stock listed on the stock exchange has collapsed and its losses are multiple times compared to the turnover. The media company operates outside the Trump Organization.
Correction August 21 at 10:20 p.m.: In 2016, Trump ran for president for the first time and not the last time, as was originally written in the story.
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