Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ US https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ An urgent clarification for Trump’s fire after the US Capitol Attack

An urgent clarification for Trump’s fire after the US Capitol Attack

In the space of four days, President Trump’s family business has lost its online store, the hum of Mr. Trump’s promotional tweets about its luxurious resorts and bragging rights host one of the world’s most prestigious golf tournaments.

The mob attack on Congress last week by Mr Trump’s supporters has spurred companies and institutions to count the Trump organization on a scale far greater than his previous polarizing actions.

And the Trump brand, which is based on gold-plated luxury and a super affluent clientele, may not be able to fully recover from the downfall of his supporters, who are storming and vandalizing the U.S. Capitol, say hospitality analysts, and some people close to the company acknowledge. Other companies affiliated with Trump, including Deutsche Bank, the president̵

7;s largest lender, and Signature Bank, are also seeking distance from him and his business.

Setbacks are part of a broader evasion of Mr. Trump and his allies unfolding in the wake of the deadly attack on the Capitol. Schools deprived the president of honorary degrees, some prominent Republicans threatened to leave the party, and the New York State Bar Association announced that they had begun investigating Trump’s personal lawyer, Rudolph W. Giuliani, which could lead to his removal from the group.

When House Democrats introduced an article on the accusation on Monday, more than a dozen large corporations promised to withhold certain political donations. Coca-Cola said it would stop donations from its Political Action Committee, saying in a statement that “these events will be long remembered and will be part of our future contribution decisions.” Marriott, the giant hotel chain, said it would stop donations from its political action committee “to those who voted against certification of the election,” a reference to congressional Republicans who joined Mr. Trump’s false allegations of election fraud. Morgan Stanley and AT&T said they would also suspend contributions to those lawmakers.

The Trump organization had already faced significant economic challenges. Many of its golf and resort properties had lost money, and the pandemic had forced it to close some restaurants and bars and drastically reduce hotel occupancy, including at the hotel a few blocks from the White House. And with more than $ 300 million in debt over the next few years, as the president has personally guaranteed, there would have been some urgency for the company to make new offers.

While such a series of challenges would interpret doom for almost any hospitality brand, leaders of the Trump organization said they planned to make money on Mr. Right. Trump’s global fame with overseas branding deals.

“There has never been a political figure with more support or energy behind him than my father,” said Eric Trump, the president’s son who helps run the family business, in a statement Monday.

The family is also already considering launching a media device that can accommodate Mr. Trump’s tens of thousands of supporters, an effort that got somewhat urgent last week when Twitter and Facebook excluded the president from their platforms.

“There will be no shortage of incredible real estate opportunities and beyond,” Eric Trump said.

Before becoming president, Mr. Trump had cycled through many business areas, including casinos, an airline, and reality television. Some projects were very successful while others were colossal failures. But they revealed his ability to camouflage his goods and take advantage of opportunities, even when his name seemed irreparably spotted.

This time the challenges are steeper. The fallout began Thursday when e-commerce provider Shopify said it had terminated online stores affiliated with the president.

The biggest blow came on Sunday when the PGA of America announced they would deprive Mr. Trump’s New Jersey Golf Club a major tournament.

Sir. According to a person close to the White House, Trump was said to be “cleared” by the PGA decision, as he had worked personally for years to push tournament leaders to hold events on his courts.

In a statement suggesting a potential legal challenge, the Trump organization called the decision “a breach of a binding contract” and added that “they have no right to terminate the agreement.”

The PGA Championship, scheduled for May 2022, was the ultimate golf world trophy for the Trump brand, which over the past two decades has brought together an international collection of golf courses and resorts that now total approx. a third of the company’s revenue according to the latest financial information report.

The tournament itself is not a major source of profit, but hosting an internationally recognized event is hugely valuable for marketing. It would also have provided greater legitimacy for Mr. Trump and his brand, which includes 16 golf clubs around the world.

“It has become clear that conducting the PGA Championship at Trump Bedminster would be detrimental to the PGA of America brand,” Jim Richerson, PGA of America’s president, said in a video statement.

The loss associated with the cancellation is difficult to calculate, but it can be very large and last for years in terms of missing out on future revenue, said Jay Karen, executive director of the National Golf Course Owners Association.

“You have millions of avid golfers who have a proverbial list,” tied to major tournaments like the PGA Championship, he said. “If you had a major coming to you and it was pulled from you, it would definitely sting.”

In an email to members Monday, the golf club said, “We have had a wonderful partnership with the PGA of America and share your disappointment with their decision.”

The damage is expected to continue as various companies and industries reassess their relationship with Mr. Trump and his family business.

Sir. Trump’s hotels, such as the Trump National Doral near Miami, had already lost many of the major corporate conferences after he made derogatory remarks about, among others, Muslims and Mexicans during his first presidential campaign and his comments after a deadly gathering of white supremacists in Charlottesville, Va. , in 2017, suggesting that “there is guilt on both sides.”

But the fallout from last week’s attacks will be steeper and longer-lasting, say analysts and people familiar with the company. Some members of the president’s golf clubs are reconsidering whether they want to keep their membership due to possible protests and vandalism, one of the people said.

David J. Sangree, a hotel industry consultant from Ohio, said Mr Trump’s role in the attack on the Capitol would further undermine the company’s efforts to appeal to wealthy customers who were not Trump supporters.

“This is a big negative,” he said. Sangree. “There is no doubt that they are losing more events because many groups are saying, ‘We do not want to be associated with this brand.'”

It became even clearer Monday night when New England Patriots coach Bill Belichick said he would deny the president’s medal for freedom because of the “tragic events of last week.” The president had planned to give Mr. Belichick the award on Thursday.

Even plans to launch a Trump media platform will face obstacles. If Mr. Trump is looking to create a new conservative news network or join an existing one like OAN or Newsmax, business advertisers are hardly guaranteed to support him.

“There’s only so much that My Pillow guy can subsidize,” said Jon Klein, the former president of CNN US, referring to Mike Lindell, CEO of My Pillow, who is an outspoken supporter of the president. “It’s suddenly a lot more scary a proposal than it was a week ago for OAN and Newsmax.”

Instead, Mr. Trump may have more success generating a newsletter – embedded with a link to a streaming channel – for millions of paid subscribers, Mr. “He has ignited the passions of his tribe, and subscription services are about tribalism.”

After Twitter permanently suspended the president’s account on Friday, he suggested he might build his own social media platform, but that would likely present daunting logistical and legal challenges. And whatever he seeks to create may require significant resources and possibly loans, which may be in short supply from common sources.

According to a person familiar with the bank’s thoughts, Deutsche Bank, which has been Mr. Trump’s primary lender for two decades, decided not to do business with Mr. Trump or his company. Sir. Trump currently owes more than $ 300 million to Deutsche Bank, which is due in the next few years.

The bank has concluded that shortly after forgiving the debt, it has no way of pulling out of the Trump relationship before the loans fall due.

Another longtime financial partner for Trumps, Signature Bank, is also cutting ties. The bank – which helped Mr. Trump in funding his golf course in Florida, where Ivanka Trump, the president’s daughter, was once a board member – issued a statement urging Mr Trump to step down as president “of our nations and the American people.”

Susan Turkell, a spokeswoman for the bank, said Signature had decided it “will not do business in the future with members of Congress who have voted to disregard the Electoral College.” Ms. Turkell said the bank in the wake of the riots began closing Trump’s two personal accounts, which had about $ 5.3 million.

When his presidency ends, Mr. Trump returns to a far different business than the one he suffered when he took office.

Several hotel properties that bore his name have been deleted from the portfolio, including properties in New York, Panama and Toronto. Plans for two new budget-friendly hotel lines that were once a priority are endlessly stored. And a product brand that got Mr. Trump to join a range of items from steaks to mattresses has declined.

The company is also facing a criminal investigation by the Manhattan District Attorney’s Office that is investigating whether the president and his firm have committed any financial or tax crimes in recent years.

Leaving the White House, however, means that Mr. Trump will no longer face ethical restrictions such as banning international agreements, potentially opening up new business opportunities. The company could look for new offers in places where business leaders believe that Mr. Trump remains popular, such as Brazil, Argentina, Israel, Saudi Arabia and India. Sir. Trump could also hit the talk show and collect big payments for every look, a business executive said.

And some customers are likely to remain loyal to existing Trump properties – especially in red or purple states like Florida and North Carolina – no matter what the president does or says, or how many times he is accused.

Mickael Damelincourt, CEO of the Trump Hotel in Washington, announced on Twitter on Sunday that “America’s Living Room is ready for you” as the hotel’s steakhouse and lobby bar aim to reopen on Friday.

In Miami, at the Trump National Doral, the bar was busy in happy hour on Friday, just like the clubhouse’s only club, where customers stopped talking about both golf games and business deals, almost none of them wore masks.

Marion McCarthy and her husband, Donald, drank drinks there – where they have been members for decades. Dozens of other guests arrived at the resort for the US Am Tour, which attracted more than 100 players, according to a scorecard that added “Doral Amateur is SOLD OUT !!!!”

“What we are seeing is an overreaction,” Mr McCarthy said. “Once he’s out of the office, I think he’s going to be able to come down here and play a little more golf.”

Maggie Haberman, David berige and William K. Rashbaum contributed reporting.

Source link