homegossipHow President Donald Trump Lost $1 Billion In 10 Years?
How President Donald Trump Lost $1 Billion In 10 Years?
Published Wed May 15 2019 By
Donald Trump, the current and 45th President of the United States always has been in the highlight either because of the controversial issues or development plans deployment. Most recently in May 2019, aside from politics, the President grabbed media attention after the release of the statement which stated $1 billion loss in the period of 10 years, in between 1985 to 1994.
Before his firm root in politics, Trump was a businessman and television personality and was working for the foster of the real estate empire that his father Fred Trump established. Indeed many of us know that a business is a gamble of the thin wall between profit and loss, while Donald Trump got overshadowed with loss.
But as per Forbes, Trump owns the estimated net worth of around $3 billion as per data of March 2019; the fortune rose up since his politics prominence by 2000s.
Donald Trump Lost $1 billion In Ten Years: Drowned Investment & Amateur Tactics
The son of Fred Trump, an American real estate developer based in New York City, Donald Trump always has been the spotlight of media. Even if he claims to have started investing in a business venture, online sources cite that Trump was a millionaire by the age of 8.
Despite many investments and business venture journey, President Donald Trump underwent many jaw-dropping losses. Well, he reportedly had taken the loan of $60 million from his father but failed to reimburse it.
According to The New York Times, Trump’s empire nearly ruined after he lost $1 billion (to be exact $1.17 billion) loss in the tenure of 10 years; from 1985 to 1994.
Having his investment in casinos, hotels, and apartments, no positive outcome came out for Donald Trump.
Here is the list of losses on the investments:
Bought a New York hospital to replace with apartment building at $60 million
Bought a Manhattan’s West Side property for $85 million and Mar-a-Lago resort in Florida for $10 million
Invested in the renovation of the Wollman Rink at Central Park ahead of schedule and under budget
Purchased a 282-foot yacht for $29 million
Plaza hotel purchase for $407 million
Bought the Eastern Airlines’ Air-Shuttle, including 21 planes and landing rights at three airports in New York City, Boston, and the Washington, D.C. with aid from 22 banks, paying $380 million
The debt of the Trump Taj Mahal Hotel and Casino opened in Atlantic City was more than $800 million.
Personal Boeing 727 jet sold for $6.5 million and other hotel and casino decoration expenses
Had received an offer of $165 million to buy back the Trump Castle Casino from Hilton Hotels, originally sold for $320 million in 1985, after series of loss
Well, in 1992 and 1993, the amount of the negative income was reported to be $94.8 million and $78.5 million respectively from a business venture.
Moreover, as the divorce alimony to first wife, Ivana Trump he had to pay $14 million cash settlement in 1992.
In 1995, the figure of the reported losses of Donald Trump was reported to be $915.7 million.
Did you know? Trump had borrowed $4 billion from more than 70 banks during the 1980s and after his corporate bankruptcies, the banks declined to lend him in the 90s.
Expenses To Counter Lawsuit
Back in 1988, Trump was sued by the Justice Department for violating procedures related to public notifications in the attempt to takeover Holiday Corporation and Bally Manufacturing Corporation in 1986.
So, to settle the civil penalties of the antitrust lawsuit, he paid $750,000.
Also, in late 1990, Donald Trump was sued for $2 million for defamation, which he settled out of court for an undisclosed amount. And the New Jersey Casino Control Commission fined Trump $200,000 in 1991 for moving African American and female employees from craps tables in order to accommodate mob figure Robert LiButti.
In addition to that, after Donald's casino became guilty of circumventing state regulations about casino financing in 1991, Trump had to pay $30,000 on fine.
Besides this, he also got caught in the sexual harassment case in 1993, filed by Jill Harth Houraney for $125 million in April 1997. Later, the case was withdrawn voluntarily after her husband settled a parallel case.
Some other major payments of Donald Trump on lawsuits are:
$250,000 to settle fines related to charges by New York State Lobbying Commission director David Grandeau
Paid $25 million on the settlement for $40 million sue by New York State in 2013, regarding false statements and defamation on consumers
Did you know? Trump spent $94,801 in 1987 (equivalent to $209,068 in 2018) for full-page advertisements in three major newspapers; it stated: "America should stop paying to defend countries that can afford to defend themselves."
Trump Is ‘First billionaire American president’: Owns $3 billion Net Worth
Well, at one point of time, President Donald Trump’s family was nearly ruined with a series of business failure, i.e. the loss of $1 billion over 10 years in the late 80s and 90s. Though, he didn’t turn his back on his venture and now is worth billion dollars.
According to the report of Forbes of March 2019, Trump owns the estimated net worth of $3.1 billion.
Well, he ranked 715th in the world and 259th in the U.S, moreover, the politician cum business personality is one of the richest politicians in American history and first ever billionaire American president.
Back in May 2018, his net worth was $2.84 billion as per Bloomberg Billionaires Index.
Most often, Trump’s growth of fortune is compared with billionaire personalities like Azim Premji ($5 billion), Wang Jianlin ($30.1 billion) and Jack Ma ($39.2 billion).
As reported, Trump’s family's estimated $200 million net worth claimed his place in Forbes List of wealthy individuals in 1982, though it slides down as he failed miserably in business in the 90s.
Meanwhile, there are more than 50 licensing or management deals involving Trump's name that makes at least $59 million annual revenue, as per an analysis by The Washington Post. Also, the Trump Organization operates 18 golf course and golf resorts in the United States and abroad.
Currently, as the 45th President of the United States, Donald Trump earns the salary of $400,000 accompanied by $50,000 allowance, $100,000 nontaxable travel account, and $19,000 entertainment account.
Dispute On Trump’s Net Worth
Well, Forbes' financial experts valued Donald Trump's worth to be around $200 million in 2011, while Trump himself claimed his brand value at $3 billion.
Since his Presidential run in 2015, Forbes estimates his worth declination by 31%, while in July, he had claimed his net worth to be around $10 billion. As per the Federal Elections Commission (FEC), Trump held total assets worth more than $1.4 billion and debt over $265 million.
But without a doubt, Trump humongous empire sums up hundreds of millions of dollars per year.