Business career

Real estate

While a student at Wharton and after graduating in 1968, Trump worked at his father Fred's real estate company, Trump Management, which owned middle-class rental housing in New York City's outer boroughs. In 1971, he became president of the company and began using The Trump Organization as an umbrella brand. The business had previously used the names Fred C. Trump Organization, Fred Trump Organization, and Trump Organization, but had not had a single formal name. It was registered as a corporation in 1981.

Manhattan developments

Trump attracted public attention in 1978 with the launch of his family's first Manhattan venture, the renovation of the derelict Commodore Hotel, adjacent to Grand Central Terminal. The financing was facilitated by a $400 million city property tax abatement arranged by Fred Trump, who also joined Hyatt in guaranteeing $70 million in bank construction financing. The hotel reopened in 1980 as the Grand Hyatt Hotel, and that same year, Trump obtained rights to develop Trump Tower, a mixed-use skyscraper in Midtown Manhattan. The building houses the headquarters of the Trump Organization and was Trump's primary residence until 2019.

In 1988, Trump acquired the Plaza Hotel in Manhattan with a loan of $425 million from a consortium of banks. Two years later, the hotel filed for bankruptcy protection, and a reorganization plan was approved in 1992. In 1995, Trump lost the hotel to Citibank and investors from Singapore and Saudi Arabia, who assumed $300 million of the debt.

In 1996, Trump acquired a vacant 71-story skyscraper at 40 Wall Street. After an extensive renovation, the high-rise was renamed the Trump Building. In the early 1990s, Trump won the right to develop a 70-acre (28 ha) tract in the Lincoln Square neighborhood near the Hudson River. Struggling with debt from other ventures in 1994, Trump sold most of his interest in the project to Asian investors who were able to finance completion of the project, Riverside South.

Palm Beach estate

In 1985, Trump acquired the Mar-a-Lago estate in Palm Beach, Florida. Trump used a wing of the estate as a home, while converting the remainder into a private club with an initiation fee and annual dues. In 2019, Trump declared Mar-a-Lago his primary residence.

Atlantic City casinos

In 1984, Trump opened Harrah's at Trump Plaza hotel and casino in Atlantic City, New Jersey, with financing from the Holiday Corporation, who also managed the operation. Gambling had been legalized there in 1977 to revitalize the once-popular seaside destination. The property's poor financial results worsened tensions between Holiday and Trump, who paid Holiday $70 million in May 1986 to take sole control of the property. Earlier, Trump had also acquired a partially completed building in Atlantic City from the Hilton Corporation for $320 million. Upon its completion in 1985, that hotel and casino were called Trump Castle. Trump's then-wife Ivana managed it until 1988.

Trump acquired a third casino in Atlantic City, the Trump Taj Mahal, in 1988 in a highly leveraged transaction. It was financed with $675 million in junk bonds and completed at a cost of $1.1 billion, opening in April 1990. The project went bankrupt the following year, and the reorganization left Trump with only half his initial ownership stake and required him to pledge personal guarantees of future performance. Facing "enormous debt", he gave up control of his money-losing airline, Trump Shuttle, and sold his megayacht, the Trump Princess, which had been indefinitely docked in Atlantic City while leased to his casinos for use by wealthy gamblers.

In 1995, Trump founded Trump Hotels & Casino Resorts (THCR), which assumed ownership of Trump Plaza, Trump Castle, and the Trump Casino in Gary, Indiana. THCR purchased the Taj Mahal in 1996 and underwent successive bankruptcies in 2004, 2009, and 2014, leaving Trump with only ten percent ownership. He remained chairman of THCR until 2009.

Golf courses

The Trump Organization began acquiring and constructing golf courses in 1999. It owned 16 golf courses and resorts worldwide and operated another two as of December 2016update.

From his inauguration until the end of 2019, Trump spent around one of every five days at one of his golf clubs.

Branding and licensing

The Trump name has been licensed for various consumer products and services, including foodstuffs, apparel, adult learning courses, and home furnishings. According to an analysis by The Washington Post, there are more than fifty licensing or management deals involving Trump's name, which have generated at least $59 million in yearly revenue for his companies. By 2018, only two consumer goods companies continued to license his name.

Legal affairs and bankruptcies

Fixer Roy Cohn served as Trump's lawyer and mentor for 13 years in the 1970s and 1980s. According to Trump, Cohn sometimes waived fees due to their friendship. In 1973, Cohn helped Trump counter-sue the United States government for $100 million over its charges that Trump's properties had racial discriminatory practices; in 1975 an agreement was struck for Trump's properties to change their practices. Cohn introduced political consultant Roger Stone to Trump, who enlisted Stone's services to deal with the federal government.

As of April 2018update, Trump and his businesses had been involved in more than 4,000 state and federal legal actions, according to a running tally by USA Today.

While Trump has not filed for personal bankruptcy, his over-leveraged hotel and casino businesses in Atlantic City and New York filed for Chapter 11 bankruptcy protection six times between 1991 and 2009. They continued to operate while the banks restructured debt and reduced Trump's shares in the properties.

During the 1980s, more than 70 banks had lent Trump $4 billion, but in the aftermath of his corporate bankruptcies of the early 1990s, most major banks declined to lend to him, with only Deutsche Bank still willing to lend money.

In April 2019, the House Oversight Committee issued subpoenas seeking financial details from Trump's banks, Deutsche Bank and Capital One, and his accounting firm, Mazars USA. In response, Trump sued the banks, Mazars, and committee chairman Elijah Cummings to prevent the disclosures. In May, DC District Court judge Amit Mehta ruled that Mazars must comply with the subpoena, and judge Edgardo Ramos of the Southern District Court of New York ruled that the banks must also comply. Trump's attorneys appealed the rulings, arguing that Congress was attempting to usurp the "exercise of law-enforcement authority that the Constitution reserves to the executive branch".

Side ventures

In September 1983, Trump purchased the New Jersey Generals, a team in the United States Football League. After the 1985 season, the league folded, largely due to Trump's strategy of moving games to a fall schedule (where they competed with the NFL for audience) and trying to force a merger with the NFL by bringing an antitrust suit against the organization.

Trump's businesses have hosted several boxing matches at the Atlantic City Convention Hall adjacent to and promoted as taking place at the Trump Plaza in Atlantic City. In 1989 and 1990, Trump lent his name to the Tour de Trump cycling stage race, which was an attempt to create an American equivalent of European races such as the Tour de France or the Giro d'Italia.

In the late 1980s, Trump mimicked the actions of Wall Street's so-called corporate raiders, whose tactics had attracted wide public attention. Trump began to purchase significant blocks of shares in various public companies, leading some observers to think he was engaged in the practice called greenmail, or feigning the intent to acquire the companies and then pressuring management to repurchase the buyer's stake at a premium. The New York Times found that Trump initially made millions of dollars in such stock transactions, but later "lost most, if not all, of those gains after investors stopped taking his takeover talk seriously".

In 1988, Trump purchased the defunct Eastern Air Lines shuttle, with 21 planes and landing rights in New York City, Boston, and Washington, D.C. He financed the purchase with $380 million from 22 banks, rebranded the operation the Trump Shuttle, and operated it until 1992. Trump failed to earn a profit with the airline and sold it to USAir.

In 1992, Trump, his siblings Maryanne, Elizabeth, and Robert, and cousin John W. Walter, each with a 20 percent share, formed All County Building Supply & Maintenance Corp. The company had no offices and is alleged to have been a shell company for paying the vendors providing services and supplies for Trump's rental units, and then billing those services and supplies to Trump Management with markups of 20–50 percent and more. The proceeds generated by the markups were shared by the owners. The increased costs were used as justification to get state approval for increasing the rents of Trump's rent-stabilized units.

From 1996 to 2015, Trump owned all or part of the Miss Universe pageants, including Miss USA and Miss Teen USA. Due to disagreements with CBS about scheduling, he took both pageants to NBC in 2002. In 2007, Trump received a star on the Hollywood Walk of Fame for his work as producer of Miss Universe. After NBC and Univision dropped the pageants from their broadcasting lineups in June 2015, Trump bought NBC's share of the Miss Universe Organization and sold the entire company to the William Morris talent agency.

Trump University

In 2004, Trump co-founded Trump University, a company that sold real estate training courses priced from $1,500 to $35,000. After New York State authorities notified the company that its use of the word "university" violated state law, its name was changed to Trump Entrepreneur Initiative in 2010.

In 2013, the State of New York filed a $40 million civil suit against Trump University; the suit alleged that the company made false statements and defrauded consumers. In addition, two class actions were filed in federal court against Trump and his companies. Internal documents revealed that employees were instructed to use a hard-sell approach, and former employees testified that Trump University had defrauded or lied to its students. Shortly after he won the presidency, Trump agreed to pay a total of $25 million to settle the three cases.

Foundation

The Donald J. Trump Foundation was a private foundation established in 1988. In the foundation's final years its funds mostly came from donors other than Trump, who did not donate any personal funds to the charity from 2009 until 2014. The foundation gave to health care and sports-related charities, as well as conservative groups.

In 2016, The Washington Post reported that the charity had committed several potential legal and ethical violations, including alleged self-dealing and possible tax evasion. Also in 2016, the New York State attorney general's office said the foundation appeared to be in violation of New York laws regarding charities and ordered it to immediately cease its fundraising activities in New York. Trump's team announced in December 2016 that the foundation would be dissolved.

In June 2018 the New York attorney general's office filed a civil suit against the foundation, Trump, and his adult children, seeking $2.8 million in restitution and additional penalties. In December 2018, the foundation ceased operation and disbursed all its assets to other charities. In November 2019, a New York state judge ordered Trump to pay $2 million to a group of charities for misusing the foundation's funds, in part to finance his presidential campaign.

Conflicts of interest

Before being inaugurated as president, Trump moved his businesses into a revocable trust run by his eldest sons and a business associate. According to ethics experts, this measure does not help avoid conflicts of interest, because Trump continues to profit from his businesses. Because Trump would have knowledge of how his administration's policies affect his businesses, ethics experts recommend selling the businesses. Though Trump said he would eschew "new foreign deals", the Trump Organization has since pursued expansions of its operations in Dubai, Scotland, and the Dominican Republic.

Pending lawsuits allege that Trump is violating the Domestic and Foreign Emoluments Clauses of the U.S. Constitution. The plaintiffs say that Trump's business interests could allow foreign governments to influence him. NBC News reported in 2019 that representatives of at least 22 foreign governments, including some facing charges of corruption or human rights abuses, appeared to have spent money at Trump Organization businesses during his presidency. The litigation marks the first time that the Emoluments Clauses have been substantively litigated in court. As president, Trump mocked the Emoluments Clause as "phony".