According to a report from the Wall Street Journal, Donald Trump will be walking into a financial morass when he leaves office and resumes control of the Trump Organization that is deeply in debt and will likely see revenues decrease with the president no longer able to count on tax dollars flowing into his properties to pay for his entourage when he visits.
With the New York Times previously reporting that the president is facing over $400 million in debt coming due soon — some of it personally guaranteed by Trump — the Journal is reporting a cash crunch may force the family to sell off some properties to retire debt at a time when lenders will likely keep their distance with the Trump Organization facing investigations in New York.
“The Trump Organization might soon slim down. Several properties are for sale, including its Washington hotel and two skyscrapers in New York and San Francisco that are part-owned by the Trump Organization. The organization also has been considering selling its Seven Springs estate outside of New York City,” the report states, adding, “Any sales could help the family avert a lending crunch. The Trump Organization has more than $400 million of debt due in the next few years and many lenders have indicated they are wary of doing business with Mr. Trump.”
Reporting that “Republican spending at Trump properties has topped $23 million since 2015 compared with less than $200,000 in the five years prior, ” the Journal notes the president will be losing an income stream at a time when he will also lose $37,000 a month of rent payments as the Trump campaign shuts down their office in Trump Tower in New York.
“The office tower, where the Trump Organization is based, has suffered from falling occupancy rates since Mr. Trump took office,” the report added.
Then there are Trump’s legal problems that are expected to explode once he is no longer protected by the office of the presidency and will put a massive strain on his finances.
“Financial challenges facing the Trump Organization are compounded by long-running legal issues, with New York probes of Mr. Trump’s businesses set to continue after he leaves office. Mr. Trump has also been contending with an Internal Revenue Service audit of his finances,” the Journal reported.
According to Jeffrey Engel, a presidential historian at Southern Methodist University, “The fact that Trump thought he could run for president and be president with potential clear irregularities in his financial background and not be discovered, that’s the most surprising part to me. It reinforces that he did not fully appreciate what it meant to be president.”
Also dogging the family are the challenges of expanding internationally with the report stating, “The Trump Organization recently lost a series of legal battles over the exclusive use of the Trump name in the European Union’s 27 countries. The continuing trademark challenges could complicate the Trump Organization’s ability to use the Trump brand across a variety of business areas, including real-estate development, gambling, golf equipment and alcohol.”
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