Trump’s Losing Strategy for Success
It is evident that Donald Trump believes that he can no longer win the Presidential election. There are also strong indications that he has therefore adopted a strategy minimize his loss of public standing, at least with certain segments of the population, and to maximize his ability to make money in the post election environment. In other words since he no longer believes he can win, Trump is trying to ensure that the results of his failed campaign allows him to continue to feed his massive ego and to replace the revenue he has lost as a result of running for President.
In recent years most his company’s revenue has not come from developing real estate projects, he has essentially been renting out the Trump brand. Dozens of real estate developments around the world from commercial office buildings, to condo developments, to golf courses bear the Trump name though he neither owns them nor was he involved in their development. It is a no risk business for Trump since he is paid to put his name on a property even though he invests no money and loses nothing if the venture goes belly up. This business model has worked for him because for years the Trump name alone increased the value of properties.
However, the Trump name has taken a real battering during this past election year as the deeply flawed man behind the legend has been revealed. Understandably the Trump name on a real estate development no longer automatically results in a premium price for the property. Now the Trump brand on a building might well be as much of a negative as an asset. As a consequence his ability to market his brand in the future has taken a massive hit.
Trump’s ability to go back to his original business of developing huge, high end real estate properties appears to be hampered as well. After his massive bankruptcies, the big American banks will no longer lend him money for such projects. He owes German based Deutsche Bank, the one big bank that will still loan him money, over $350 million and that institution is itself in deep financial trouble. The US Justice Department is trying to collect $14 billion in fines levied on the bank for its toxic loans which contributed to the financial melt down (a potential conflict of interest if Trump becomes President).
A New York Times investigation found that the companies that Trump owns owe at least $650. Other lenders include the Bank of China and Goldman Sachs – both of which he railed against during his campaign. Donald Jr. is also on record saying that a disproportionate amount of investments in the Trump empire come from Russia (another potential conflict of interest should Trump become President
Even with the value of his brand diminished and his ability to borrow money reduced, I have no doubt that Donald Trump will continue to find ways to make money in real estate if he loses the election, even if it is on a reduced scale. The real question is how does continue to hog the spotlight if he doesn’t move into the White House?
During the last year his campaign antics have enabled him to control the news cycles almost continually. Thousands of adoring fans have packed his rallies. For a publicity hound like Donald Trump his Presidential run must be intoxicating. Unless find ways to keep himself in the public’s eye, he is sure to go through withdrawals. Trump’s current strategy indicates that he now expects to lose because it is all about his plan to maintain his place in the spotlight after the election.
Trump’s Losing Strategy for Success