ADVERTISEMENTREMOVE AD

Casinos, Airlines, Vodka: Hits and Misses of Trump’s Businesses

From real estate to airlines and magazines, Donald Trump has tried his hand at more businesses than you can imagine.

Published
World
5 min read
story-hero-img
i
Aa
Aa
Small
Aa
Medium
Aa
Large
Hindi Female

President of the United States of America, reality TV star, cover face of his own magazine and one of the most controversial leaders across the world, Donald Trump is many things. On his 72nd birthday, let’s look at the ups and downs of his business dealings.

From being a real estate mogul to funding his own election campaign, Donald Trump’s wealth has always been a matter of public discourse.

Forbes estimated Donald Trump’s net worth to $3.1 billion in March 2018. According to Forbes magazine’s annual ranking of the world’s wealthiest people, the US President slipped from 544th richest last year to 766th this year.
From real estate to airlines and magazines, Donald Trump has tried his hand at more businesses than you can imagine.
(Source: Forbes)
(Photo altered by The Quint)
ADVERTISEMENTREMOVE AD

The Odds In His Favour

The Inheritance

Fred Trump, Donald Trump’s father was into real estate with apartment complexes for the middle-class in Brooklyn and Queens to his credit, The Washington Post reported.

The New York Times recently found documents in Queens Surrogate Court that show that Fred Trump, in his will, divided $20 million among his four children.

Trump’s father also set up trusts before he died. Donald Trump admitted in a 2007 deposition that he borrowed at least $9 million from his future inheritance when he encountered financial difficulties.

The Grand Hyatt Hotel

In the mid 1970s, Donald Trump decided to expand the family’s real estate business to Manhattan, with the building of the Grand Hyatt hotel in 1978 near New York’s Grand Central station being a key element of Trump’s first big deal. The hotel reportedly replaced an ageing Commodore property and helped put the Trump name on the map.

Real Estate

The Trump Organization owns hundreds of residential units and office spaces that create regular rental income. According to Forbes, The Trump Hotel Collection and real estate licensing brought in $170 million as of February 2018.

The Apprentice

In the 1980s, Trump got his start on TV as a wrestling character on World Wrestling Entertainment’s (WWE) 'Wrestlemania'. He went on to star in a reality TV show about his business called ‘The Apprentice.’ in 2004.

In the show, contestants vied for a six-figure paying managerial position at one of Trump's many companies. Reportedly, in the ten-year history of ‘The Apprentice’ and its spin-off series ‘The Celebrity Apprentice,’ Trump made a total of $214 million.

The Art of the Deal

Trump released his first book, ‘The Art of the Deal,’ in November 1987. It spent 51 weeks on the bestseller list and has sold around 1 million copies thus far according to most reports.

‘The Art of the Deal,’ generated royalties of $50,000 to $100,000 in 2015. For his November 2015 book, 'Crippled America: How to Make America Great Again,' reported income between $1 million and $5 million.

0

The Brand Name

Many properties that bear the Trump name aren't actually owned by him. The Trump Organization has been known to partner with developers in licensing deals wherein a developer pays Trump a licensing fee and in exchange, they're given permission to brand their building with the Trump name and logo.

Trump benefits by receiving a regular stream of royalties, while the developer can increase the rates she charges because the Trump name signifies high quality and luxury.

Trump has lent his name to mattresses, apparel, fragrances and furniture which contribute to Trump's annual income. As of February 2018, Trump brought in $6 million via consumer products licensing according to Forbes.

ADVERTISEMENTREMOVE AD

The Voice

Trump would charge speaking fees for conferences and other functions. Between May 2014 to March 2015, he spoke at several engagements and charged as much as $450,000 for each presentation. Overall speaking engagements contributed $1.75 million to Trump's income during that period alone.

ADVERTISEMENTREMOVE AD

The Flops

The Taj Mahal Casino

In 1988, Trump acquired The Taj Mahal Casino in Atlantic City which was funded primarily by “junk bonds”. Within a year, the casino entered a $3 billion debt which led to Trump having to rack up $900 in personal liabilities and the business having to declare bankruptcy for the first time. - 900?? Isn't that too little?

The personal liabilities he had to give up were his airline, a mega yacth and half of his stake of the company. His father reportedly chipped in a $3.5 billion dollar loan in the form of casino chips to help him stay afloat.

The casino company entered bankruptcy again in 2004 for a debt of $1.8 billion and in 2009 after missing a bond payment.

ADVERTISEMENTREMOVE AD

Trump Airlines

In 1988, Donald Trump bought Eastern Air Shuttle, a service that for 27 years and had run hourly flights between Boston, New York City and Washington DC, reported TIME. For roughly $365 million, Trump got a fleet of 17 Boeing 727s, landing facilities in each of the three cities and the right to paint his name on an airplane.

Trump gave the airline a lavish touch but customers weren’t impressed. Moreover, high pre–Gulf War fuel prices put the airlines through severe losses. The ownership of the company was eventually turned over to creditors.

ADVERTISEMENTREMOVE AD

Trump Vodka

Trump Vodka was licensed in 2005 from The Trump Organization. The brand ceased production in 2011 when it failed to meet the required threshold for distribution. However, it is still sold in Israel.

ADVERTISEMENTREMOVE AD

Trump: The Game

In 1989, Donald Trump released ‘Trump: The Game’, a Monopolyesque board game in which three to four players must buy and sell real estate and try to trump one another in business deals. A year later Trump admitted the game was vastly underselling.

Trump revived the game 15 years later after his success on The Apprentice, making sure to incorporate the series catchphrase “You’re fired!” into the game and other updated features. - - did it do any better?

ADVERTISEMENTREMOVE AD

Trump Steak

In June 2007, Trump kicked off his line of premium steaks that he dubbed the “world’s greatest.” Reportedly, Trump Steakhouse in Las Vegas was closed down in 2012 for 51 health code violations, including serving five-month old duck. The company has since been discontinued.

ADVERTISEMENTREMOVE AD

Trump Magazine

Trump launched an eponymous magazine in 2007 which he described as “reflecting the passions of its affluent readership by tapping into a rich cultural tapestry.” A year-and-a-half after the launch, the magazine ceased publication.

ADVERTISEMENTREMOVE AD

GoTrump.com

Trump launched a luxury travel search engine,GoTrump.com in 2006 powered by booking giant Travelocity. It shut down a year later.

ADVERTISEMENTREMOVE AD

Trump University

In 2005, Trump opened a non-accredited Trump University which was sued by 4 students in 2010 for “offering classes that amounted to extended ‘infomercials.’”

The name of the university was eventually changed to ‘The Trump Entrepreneur Initiative’ before ending operations one year later. In 2013, the New York Attorney General sued Trump for $40 million for allegedly defrauding students.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

Read Latest News and Breaking News at The Quint, browse for more from news and world

Speaking truth to power requires allies like you.
Become a Member
3 months
12 months
12 months
Check Member Benefits
Read More
×
×