Details of the sale revealed
Donald Trump has been the subject of extensive legal action in recent months. Allegations against him include inciting the January 2021 US Capitol riots, keeping confidential files at his home in Florida, and exaggerating his net worth to help strike more favorable deals.
One of the topics that cropped up during an ongoing civil fraud trial in New York relating to the finances and business dealings of the former president and his family is a public golf course in the Bronx.
he was not aware of the net profit from the sale
Casino company Bally’s paid $60m to take it over from the Trump Organization this fall, according to Donald Trump Jr. He noted while providing testimony on Thursday that he was not aware of the net profit from the sale as there was the company accrued significant costs while it controlled the asset.
An untenable position
The lease transfer’s terms were not made available when the deal became public knowledge in September; Eric Trump simply said at the time that “the deal was too good to refuse.”
The catalyst for the sale was that the city did not want to associate with Trump following the US Capitol insurrection. Bill de Blasio, the mayor at the time, stated that he had legal authority to tear up a contract with the Trump Organization for inciting the riots. A state judge ultimately rejected this argument in 2022.
The Jack Nicklaus-designed course was formerly a landfill and the city spent over $127m converting it into a golf course. Trump did not pay anything to the city for the initial four years of control. His company then had to contribute the greater of 7% of gross annual revenue or $300,000 each year, with the contributions rising gradually. The course was reportedly making up to $5m profit annually.
Bally’s eyeing casino license
Bally’s Corporation is one of a number of companies with an interest in securing a lucrative casino license in downstate New York and has identified the site in the Bronx as a potential location.
it’s not in a very densely populated area
In addition to taking over the lease on the 180-acre site, Bally’s intends to buy the 17 acres on which the course lies. Some of the selling points of having a casino by the current golf course would be its location beside a major highway and that it’s not in a very densely populated area.
One of the challenges that other proposals face is political backlash due to the traffic and crime issues that might arise from having such a facility in their communities. The potential $2.5bn Bally’s casino would reportedly be built on the current site of the clubhouse and parking lot.